SAP ABAP QUERY

ABAP QUERY
Step 1 : Create User Group – SQ03
Follow the menu path – SAP Menu -> Tools -> ABAP Workbench -> Utilities -> SAP Query -> User Groups
a) In the User Group : Initial Screen - 
- Enter User Group Code (self named)
- Click on “Create”
b) In the User Group (Code) : Create or Change pop-up window -
- Enter the User Group Description 
- Click on “Save”
c) In the Create Object Directory Entry pop-up window - 
- Click on “Local Object” button
- The User Group Created is Saved
Step 2 : Create User Group – SQ02
Follow the menu path – SAP Menu > Tools > ABAP Workbench > Utilities > SAP Query > Infosets
a) In the Infoset : Initial screen -
- Enter Infoset Code (self named)
- Click on “Create” button 
b) In the Infoset : Title & Database Screen - 
- Enter Description of Infoset in the “Name” field
- In the Data Source selection : Select appropriate Data Source by clicking the radio button
Source the data can either be multiple tables OR single table. There are 4 options for the user to select from
- Click on “Continue” (Enter)
- Selected Table gets displayed in the Infoset : Initial Screen
c) In the Infoset : Initial Screen - 
- Click on “Insert Table” button
d) In the Add Table Screen - 
- Enter the Table Name that is to be inserted
- Click “Continue” (Enter)
e) In the Infoset: Initial Screen - 
- Click on “Back” button
f) In the Field Group Defaults pop-up Screen - 
- Select Appropriate Field Group Option by clicking on the radio button
There are 3 options to select from. User can select Empty Field Group option and then select the data fields in the steps explained further.  Alternatively, User can select an option which clubs all the data fields from all the tables selected.
- Click “Continue” (Enter)
g) In the Change Infoset Screen - 
The left side lists the Tables that the user has selected in step b, c & d
- In the right side, system creates field groups, one for each table listed in the left part. Initially, the Field Groups are empty.
- In the Left Side, Click on the arror next to the table name and expand and display all the data fields in the table.
- Select a Data Field from the expanded Table view, which is to be added to the Field Group on the right.
- Select a Field Group on the right side, in which Data Field selected above has to be added.
- Right click on the Data Field selected and click on “Add Field to Field Group”.
- The selected Data Field gets added to the selected Field Group, which is indicated by an arrow next to the Field Group.
- Carry out the steps above to add the required Data Fields to the respective Field Groups
- After transferring Data Fields to Field Groups click on “Generate” button
h) In the Create Object Directory Entry Screen - 
- Click on “Logical Object” button to generate the infoset
i) In the Change Infoset Screen - 
- Click on the “Back” button
j) User is taken back to the “Infoset: Initial Screen” which displays the created Infoset record.
Step 3 : Assigning User Group to Infoset – SQ03
Follow the menu path – SAP Menu -> Tools -> ABAP Workbench -> Utilities -> SAP Query -> User Groups
a) In the User Groups : Initial screen - 
- Enter the User Group for which Infoset is to be assigned
- Click on “Assign Users & Infosets” button
b) In the User Group: Assign Users Screen -
- Click on “Assign Infosets” button
c) In the next screen, select the Infoset, which needs to be attached to the User Group selected
d) Click on the “Back” button
Step 4: Creating Query – SQ00 & SQ01
Follow the menu path – SAP Menu -> Tools -> ABAP Workbench -> Utilities -> SAP Query -> Queries
a) In the “Query from User Group: Initial Screen - 
- Click on “Other User Groups” button
- In the pop-up screen, User Groups, select the User Group for which the Query has to created. The pop-up screen closes.
- Enter the Query Code in the “Query” field
- Click on “Create” button
b) A pop-up screen “Restrict Value Range” shows the list of Infosets assigned to the User Group
- Select the Infoset for which Query has to be created
c) In the new screen Create Query: Title, Format - 
- Enter the Description of the Query in the “Title” field
- Click on the “Next Screen” button
d) In the Select Field Group” screen
- Select the Field Groups from which Data Fields have to be selected for the Output
- Click on the “Next Screen” button
e) In the “Select Field” screen - 
- Select the Data Fields which should appear in the output
- Click on the “Next Screen” button
f) In the Screen “Selection” -
- Select the Data Fields for the selection criteria
- Enter the sequence in which the selected fields would appear in the input screen of the query.
- Define if the selection criteria should be Single Value or Multiple Value Rangeby clicking in the appropriate check boxes
- Click on the “Basic List’ button
g) In the screen “Query Layout Design” - 
- Select the Output Fields from the Data Fields section by clicking the appropriate check box
- Change the sequence of Data Field columns if required
- Click on the “Test” button to test the query created
h) On the “Test Query” screen click “Continue”
i) In the “Query” screen -
- Enter the selection criteria
- Click on “Execute” button
j) Save the Query created
Step 5: Running the Query – SQ00
a) In the Query From User Group: Initial screen – 
b) Click on “Other User Groups” button to select the User Group
c) In the pop-up screen “User Groups” select the User Group
d) System lists all the queries created for the User Group
e) Select the appropriate Query
f) Click on “Execute” button
g) User is taken to the Selection screen
h) Enter the selection criteria and click on “Execute” button
i) System runs the query and gives the output

EDI

EDI: It is the electronic exchange of documents between the computer systems of  partners, using a standard format over a communication network.

BENEFITS OF THE EDI PROCESS:

The implementation of EDI benefits both the sender and the receiver. The following things can be minimized with this process:

Reduced data entry errors: EDI does not involve data entry at multiple points. In a regular process, a sender creates an document on the system, prints the document, and then faxes or mails it to the receiver. The receiver then re keys the same information on their computer. With this procedure, data goes directly from one computer to the another without any involvement.

Reduced process cycle time : The biggest advantage is the reduced processing time of the complete cycle. As soon as documents are entered into the system, they can be processed on the receiving side in seconds. There is a considerable savings in the processing time of document transfer.

Availability of data in electronic form. Data from EDI is a electronic form, which makes it easy to share across the organization. For example, a purchasing department can use the data to evaluate vendors, or a marketing department can use the data to analyze the trends and demands of customers.

Reduced cost : The initial cost of an EDI setup is certainly higher compared to the paper process, but over a long period it is very cost effective. In the long term, the overall cost of  exchanging business documents in paper form can cost less per transaction.

Standard means of communication : Because EDI enforces standards on the contents of data, uniform naming standards and field sizes have emerged. Such consistency leads to clearer communication and less ambiguity.

IMPLEMENTATION:

EDI can be implemented in two process:

1. Outbound Process.
2. Inbound process.

Outbound process : In this process, we create the document, and the document is transmitted to the Operating system layer and it is transmitted over a TCP/IP network.

The outbound process has some specifications and standards which has to be done before transmitting the document.

The outbound process uses

1. IDOC types
2. selection programs.
3. Message control.
4. Partner profiles.
5. Port Definitions
6. Service Programs.
7. Tables to generate an IDOC.

1. IDOC types: The EDI document to be generated has an equivalent message type defined in the SAP system. The message type is based on an IDOC structure. As an example, if an EDI transaction of 850, which is a purchase order, is to be generated, the message type ORDERS is assigned to it.  This message is based on IDOC type ORDERS01 and ORDERS02. The IDOC type is the most important component in the EDI process.
2. Selection programs: These are typically implemented as function modules, which are designed to extract application data and create an IDOC. A selection program exists for each message type. The programs are generally named with the following naming convention:

               IDOC_OUTPUT_<message type>

In my project, the selection program for message type ORDERS is IDOC_OUTPUT_ORDERS. A four character process code, ME10, has been assigned to this function module. The list of outbound process codes and their corresponding function modules can find with the transaction :

                          T-code : WE41.

3. Message control: It is used in pricing, account determination, material determination, and output determination.  The message control component enables to encapsulate business rules without having to write programs. In the EDI process, Message control determines and processes the various outputs associated with an application document.
4. Port Definition : A port is used in the outbound process to determine the name of the EDI subsystem program, the directory path where the IDOC file will be created at the operating system level, the IDOC file names, and the RFC destination.
5. Partner profiles:  The partner profiles specifies the various components used in the outbound process, the mode in which it communicates with the subsystem and the person to be notified in case of errors.
6. Service programs and Configuration tables: The asynchronous outbound process can be seen as a sequence of several processes that work together. In this service programs and configuration tables are used to link the process. The process flow for the outbound process describes the role played by each service program and configuration table.

INBOUND PROCESS: The inbound process uses the following components to post and application document from the IDOC:

1. IDOC type.
2. Port Definition.
3. Posting programs
4. Service programs.
5. configuration tables.

All the things described above are the same except for the posting programs.

Posting  programs:  These are implemented in the system as function modules. A posting program exists for each message type. The posting programs are named with the following naming convention.

                             IDOC_INPUT<message type>

In my project, the posting program for the message type ORDERS I have taken is IDOC_INPUT_ORDERS. A four- character process code, ORDE, has been assigned to this function module. The list of inbound process codes and their corresponding function modules by executing the following transaction.

     T-CODE : WE42.

With the above specifications, I have configured the following things before actually start working on the interchange process :

1. Configuration of  Port Definition.
2. Configuration of Partner Profiles.
3. Assigning number range and selection of IDOC.
4. Assigning organization and user.
5. Setting up RFC destination.
6. Creation of Purchasing document.
7. Creation of receiving fields information.

1.Configuration of Port Definition:

In this section, we provide the complete details about the subsystem,  the outbund file and the function module we are using, the status file, which tells about the status of the IDOC.

Transaction Code: WE21.

For EDI process, the port that is used is the FILE port.

Transaction RFC’s are used for ALE applications.

Internet port is used for internet applications.

XML port is used for XML applications.

This is a very important step in the whole process, because all the outbound, inbound and status files are stored in the port definitions.

Configuration of Partner Profiles:

It is important to maintain the profiles of each partner in the business scenario with whom we exchange our business documents.

TRANSACTION : WE20.

There are three views of a partner profile in which  different parameters can be entered as a partner :

General Parameters view : These values are stored in table EDPP1.

In this view, it contains very basic information about the partner, such as partner number, partner type, and default individual to notify in case an error occurs. These partner attributes appear at the top of the main partner profiles screen and under the post processing : permitted agent and classification tabs.

Partner number : In EDI, the partner number is a  customer number or bank ID. In this case, I have taken my student number(573097) as my partner number.

Partner type : The partner type represents the type of  our business partner. In this case, I have taken type as customer(KU).

Assigning number range and selection of IDOC:  This is done by the following transaction. This is very important in every EDI applications because it will be a big problem if two IDOC’s are assigned a same value.

                                   T- Code : WE46.

Setting up RFC destination : Every transaction that is transmitted over a network must know the destination point before it is transmitted. This is done by using the Remote Function Call called as RFC. The program called SERVER_EXEC is selected for TCP/IP connections.

The transaction code used for this process is : SM59.

This program starts an application on the server and establishes a network between the two systems.

Creation of application document:

 T-code : ME11.

In my project, I have taken a purchasing order as the application document and created all the required fields in the document and saved. As soon as the application document is saved, it fills all the details in the database tables.

The yellow state in the output screen tells that the document is saved without any errors.

Creation of receiving fields information:

For every transaction, the receiver information must be entered for every transaction.

This can be done with the following transaction.                  

T-code : XD02.

The receiver fields are the most critical in the EDI transaction. If there is something wrong in the information, the application document is transmitted and the acknowledge is given to the sender. But before the transmission, the receiver is notified that the information is available and waits for the permission whether it is ready to share.

In this way, all the fields in the receiver section should be filled before actually sending the document.

THE FOLLOWING STEPS ARE DONE FOR THE SUCCESSFUL TRANSMISSION OF EDI DOCUMENT:

STEP 1:

DEFINING THE GLOBAL PARAMETERS FOR IDOC:

Transaction Code: WE47.

In order an Idoc to be transmitted, it should be first assigned so that all application components can identify the type of Idoc.

 This can be done by giving the administrator name and it’s type.

CONFIGURING THE PARTNER PROFILES:

Transaction code : WE20.

I have created a partner profiles with

Partner number : 123 (ANANTH GOWRI SANKAR PATURU)

Partner type :     Customer.

OUTBOUND PARAMETERS:

Message type :   ORDRSP.

Receiver port  :  SUBSYSTEM (because all my transactions are residing in my R/3).

Idoc type       : ORDERS05

Application   :  EF (which is the message type supported for this application ).

Process code :  SD10 ( Every transaction of this message type for outbound process needs a process code SD10).

INBOUND PARAMETERS:

Message type :   ORDERS.

Receiver port  :  SUBSYSTEM (because all my transactions are residing in my R/3).

Idoc type       : ORDERS05

Application   :  EF (which is the message type supported for this application ).

Process code :  ORDE ( Every transaction of this message type for inbound transaction needs a process code ORDE).

In the same way for the receiving end,

 Partner number : 3030  (AIR PARTS)

 Partner type :     vendor.

OUTBOUND PARAMETERS:

Message type :   ORDRSP.

Receiver port  :  SUBSYSTEM (because all my transactions are residing in my R/3).

Idoc type       : ORDERS05

Application   :  EF (which is the message type supported for this application ).

Process code :  ME10 ( Every transaction of this message type for outbound process needs a process code ME10).

INBOUND PARAMETERS:

Message type :   ORDRSP.

Receiver port  :  SUBSYSTEM (because all my transactions are residing in my R/3).

Idoc type       : ORDERS05

Application   :  EF (which is the message type supported for this application ).

Process code :  ORDR ( Every transaction of this message type for inbound transaction needs a process code ORDE).

CONFIGURING THE RFC DESTINATION :

Transaction Code : SM59.

In the settings of the RFC destination being used in the process, I have taken the destination type as SERVER_EXEC because it is the only one that supports the R/3 system for the version.

CONFIGURING THE PORT DEFINITION :

Transaction Code : WE21.

In the port definition I have taken FILE as the port because it is the only port that supports this EDI transaction. In the port definition, all the outbound process and inbound process are stored in a specific location.

CREATION OF APPLICATION DOCUMENT:

Transaction Code : MK01.

This is the most typical part in the program :

I have created an application document with the above profiles of the sending and the receiver information.

The details are as follows:

Vendor : 3030 (Air parts)

Purchasing organization : 3000. (IDES USA)

Customer : 123 (Ananth gowri sankar paturu).

Material Description : R300.

As soon as the document is saved the Idoc is generated from the NAST table by storing the application document.

CONFIRMATION NUMBER FOR THE APPLICATION DOCUMENT : 4500008604.

CHECKING FOR THE SUCCESSFUL CREATION OF APPLICATION DOCUMENT:

Transaction Code : MK23.

By giving the confirmation number of the application document, the purchase order transaction can be confirmed.

CONFIRMING THE APPLICATION DOUMENT ENTRIES IN THE DATABASE:

Transaction Code : SE16.

By typing the table name NAST in the table entry we can view all the details of the application document.

WRITING A PROGRAM FOR THE VALIDITY OF SENDING AND RECEIVING PROFILES AND GENERATION OF Idoc FOR THE DATA THAT IS SAVED IN THE APPLICATION DOCUMENT :

Transaction Code : SE38.

Program Name    :

Database Tables I have used in my program :  edpp1, edkp1, eddp1,edk12, edk13, edk21,tede1, tede2, edmat, edmsg,  edimsg.

Outbound Parameters Tables : EDPP1

Inbound Parameters Tables :  EDP12,EDP13,EDP21.

By retrieving the data from the above tables which are storing the values of the application document and receiving , sending profiles by using SELECT statements, SUBROUTINES , FUNCTION MODUELES , the following things are executed.

1. VALIDITY OF THE PARTNER PROFILES.
2. GENERATION OF IDOC.
3. CORRECT PORT ASSIGNMENT.
4. GIVING A PROPER ERROR MESSAGE.

VERIFICATION OF IDOC:

Transaction Code : WE02.

VERIFICATION OF STATUS:

Transaction Code : WE05.

INBOUND PROCESS:

UNPACKING THE IDOC:

Transaction Code : WE19.

I have selected the same idoc which I have used for the outbound process and created a text file called in123.dat and saved the idoc in the current file.

Next, by selecting the function module IDOC_INPUT_MATMAS01, the inbound process flow is started and an incoming Idoc is created in the system.

VERIFICATION OF POSTING OF APPLICATION DOCUMENTS:

Transaction Code: BD87.

With this transaction , the application document is restored.

The final application document is viewed from the current location of the purchase order.

After all the settings are done, the successful posting of an EDI document in the outbound process is done by getting all the details from the data stored in the tables.

Program that I have written to get the details of the partner profiles, port definitions, is ZEFSKFLSDJ.

SAP Settings for free of charge delivery

Movement type 511, free delivery – GR others

Customizing

Materials Management à Inventory Management and Physical Inventory à Settings for Enjoy transactions à Settings fro Goods Movements (MIGO) à Field Selection per mvt type

Back Flushing--- SAP

With this type of withdrawal, the components are already located at the production location. During the process, they are physically consumed; however the consumption is not reported in the system until the actual consumption quantity is known.  That is when the completion of the order is confirmed.

SAP exclude a storage location from MRP run, and where is the setting.

Customizing

Materials Management à Consumption Based Planning à Planning à Define Storage location MRP per Plant à Plant Id

                                MRP Indicator   Detail

Settings are        Blank                                     St location also planned with plant

                                   1                                           St location excluded from MRP

                                   2                                           St location planned separately

SAP Source Determination priority

As a result of planning run, source determination for a material follows the following logic;

1.       Quota arrangement

2.       Source list with mrp indicator

3.       Outline agreement item

4.       Info record

Enhancement LWSUS001 will enable you to replace the SAP source determination logic with customer logic.

W/o material master the logic is as follows;

1.       Outline agreement for a material group

2.       Info record for material group.

A click in the check box of “Regular Vendor” in the info record will make the vendor a preferable vendor and the only source in automatic source determination. In case you want to use vendor from source list with regular vendor clicked on, the system will issue a error message. So use the regular vendor when only info records are maintained.

Activate regular in customizing at the plan level as follows;

Customizing;

Materials Management à Purchasing à Source Determination à Define regular Vendor

SAP MM TAX CONFIGURATION

1.     Material master configuration (MM)
IMG Path: Materials Management>Purchasing>Taxes>
Set tax indicator for material
Transaction: OMKK
Table: TMKM1
The A/P material tax classification indicator is used as a key to
automatically determine the tax code within purchasing. Multiple tax
classifications may need to be set up for special tax rules and
regulations based on material. These tax classification indicators are
user defined, and point to user defined tax codes (see 10.5). For
example, tax classification 0 could represent an exempt material or
service which points to a tax code I0. Tax classification 1 may
represent a standard product which points to a tax code I1. Tax
classification 2 represents a service which points to a tax code I2. Tax
classification 3 represents a rental/lease that points to a tax code
defined as I3. Tax classification 4 points to a tax code U1 that
represents A/P consumer use tax. Tax classification 5 points to a tax
code I4 that represents a Taxware product code of 52000 for insurance.
Tax classification 6 points to a tax code I5 that represents a user
defined product code 9937299.
2. Define tax classification indicators for plant (MM)
IMG Path: Materials Management>Purchasing>Taxes>
Set tax indicator for plant

 Set tax indicator for plant
Transaction: OMKM
Table: TMKW1
Define the MM plant tax classification indicators.
Customizing Master Data Tax Indicators (MM)
3. Assign tax classification indicators to plant (MM)
IMG Path: Materials Management>Purchasing>Taxes>
Assign tax indicators for plants
Transaction: OMKN
Table: T001W
Assign U.S. plants a tax classification indicator.
Please note that this step is not mandatory. This step is only necessary if plant will be used to automatically determine the tax code on MM documents.
4. Define tax classification indicators for account assignment (MM)
IMG Path: Materials Management>Purchasing>Taxes>
Set tax indicator for account assignment
Transaction: OMKL
Table: TMKK1
Define the MM account assignment tax classification indicators.
5. Assign tax classification indicators for account
assignments (MM)
IMG Path: Materials Management>Purchasing>Taxes>

Assign tax indicators for account assignments
Transaction: OMKO
Table: T163KS
Assign account assignments a tax classification indicator.
Please note that this step is not mandatory. This step is only necessary  if account assignments will be used to automatically determine the tax code on MM documents.

SAP MM interview Questions-Part 1

1. What is the difference between the stock transfer between two plants belonging to same company code and those belonging to different company code?
2. What are the fields in Purchasing view?
3. What are the steps in automatic account assignment config.
4. How do you create movement types? What are the steps involved? When will you recommend a new movement type?
5. What is meant by access sequence? When it is used?
6. How does the PO pick up the pricing schema?
7. What are the steps involved in creating a pricing procedure?
8. What are the types of special stocks available?
9. What are the types of inforecords?
10. What is meant by consignment stock?
11. What are the steps involved in consignment cycle?
12. Tell me about the subcontracting cycle.
13. How is scrap accounted in subcontracting?
14. How are the byproducts taken care of in subcontracting?
15. Tell me about the various movement types and usage.
16. What is meant by scales? Can scales be used in standard purchase order?
17. What is the difference between a contract and a scheduling agreement?
18. How does the system calculate taxes?
19. How does the system calculate nondeductible taxes?
20. What is meant by batches? How can the batches be searched?
21. How is a shelf-life item managed in SAP? What is the full cycle?
22. What are the settings required for quota arrangement?
23. What is meant by MRP Type and lot sizing?
24. Can it be configured in such a way that the external requisitions can also be taken into account while MRP runs in consumption-based planning if VB is selected as MRP type?
25. What is a reference purchase organization? When can it be used?
26. Explain the concept of split valuation and when can it be used? What are the settings required?
27. What are valuation area, valuation category and valuation class?
28. What is meant by a credit memo?
29. How are free items managed in a PO?
30. What is meant by a release strategy?
31. What are release groups and release codes?
32. What are the differences between release procedure with classification and release procedure without classification? When are they used?
32. Is it possible to have a release procedure without classification for a PO?
33. What is the maximum number of levels available in SAP?
35. Is it possible to have scales in a quotation?
36. What is GR blocked stock? When it can be used?
37. What is the movement type for return to vendor? How to reverse it?
38. How are the variations in subcontracting taken care of in SAP?
39. What are the tools available for data migration in SAP?
40. What is LSMW?
41. What is the difference between LSMW and CATT?
42. How to give specifications for developments?
43. How do you plan for a vendor rating system and move about?
44. What is RTP?
45. What is the movement type used in receipt of RTP?
46. How is an item with serial no. managed?
47. How do you make variants?
48. What are the types of tables in SAP?
49. How to inventory excise duty in SAP?
50. What are the documents generated in the MIGO 101 movement type? What are the accounts hit?

MRP run procedures:-

1.MRP for plant online (total planning)
2.MRP for plant(back ground processing-total planning)
3.MRP for material, online(single level object planning)This can be run at single level or multiple level for BOM
Regenerative (NEUPL):-The system plans for all materials which are included in planning file irrespective of all indicators.
Netchange planning (NETCH):-The system only plans those materials which are provided with change indicator
Netchange with horizon(NETPL):-The system only plans for those material provided with changed indicator in the horizon.

Service Entry sheet

The service entry sheet is used to record services as they are actually

performed by the vendor or subcontractor. In the case of planned services, the

services actually performed are recorded in the entry sheet with reference to

the specifications already entered in the PO. In the case of unplanned services

(defined only in the form of money limits in the PO), the service entry sheet

constitutes the document in which precise specifications are entered into the

system for the first time.

Steps in procurement of services

The procurement of services may involve the following phases:

·

Creation of purchase requisition

·

Determination of possible sources

·

Invitation to potential service providers to submit bids (creation of RFQ)

·

Entry of quotations (bids)

·

Analysis and evaluation of quotations

·

Award of contract (order placement)

·

Entry of services actually performed

·

Acceptance of services performed· Checking and approving invoices submitted by vendors for services performed

VENDOR EVALUATION

The Vendor Evaluation component has been completely integrated into MM Purchasing.

Information such as delivery dates, prices, and quantities can be taken from purchase

orders. Vendor Evaluation also uses data from Quality Management, such as the results

of incoming inspections or quality audits. It also accesses basic data in Materials

Management, such as goods receipt data from Inventory Management, and data from

the Logistics Information System

What is Vendor Evaluation?

The Vendor Evaluation System supports you in the optimization of your procurement

processes in the case of both materials and services.

Procurement of Materials

The system helps you select sources of supply and facilitate the continual monitoring of

existing supply relationships. It provides you with accurate information on prices, and

terms of payment and delivery. By evaluating vendors, you can improve your

enterprise's competitiveness. You can quickly determine and resolve any procurement

problems that may arise on the basis of detailed information and in collaboration with the

relevant vendors.

Procurement of Services

You can check the reliability of the vendors from which you procure services on a plantby-

plant basis. You can determine whether the vendors perform the services within the

specified timeframes and appraise the quality of the work carried out.

Scores and Criteria

The SAP Standard System offers you a scoring range from 1 to 100 points, which is

used to measure the performance of your vendors on the basis of five main criteria. You

can determine and compare the performance of your vendors by reference to their

overall scores. The main criteria available in the standard system are:

·Price

·Quality

·Delivery

·General service/support

These four main criteria serve as a basis for the evaluation of vendors from whom you

procure materials.

You can also define other or further main criteria, as required. You can assign different

weights to the individual criteria. The vendor's overall score is computed taking into

account the weighted scores awarded for each of the main criteria. The Vendor

Evaluation System ensures that evaluation of vendors is objective, since all vendors are

assessed according to uniform criteria and the scores are computed automatically. In

this way, subjective impressions and judgments can be largely avoided. To create a

detailed evaluation, each main criterion can be divided into several sub criteria. The

standard system provides you with certain sub criteria, which suffice as a basis for

evaluation, but you can also define your own additional sub criteria.

The scores for the sub criteria are calculated in three different ways.

Automatic

Scores are calculated by the system on the basis of existing data.

Semi-automatic

You enter individual scores for important materials, or for the quality and

timeliness of a service performed yourself. The system then calculates the

higher-level score from these.

Manual

You enter a blanket score for a sub criterion per vendor.

Analyses

The results of vendor evaluation are displayed in the form of analyses. For example, you

can generate ranking lists of the best vendors according to overall score or ranking lists

for specific materials. Changes to evaluations are recorded in logs, and you have the

option of printing out evaluation sheets.

Organizational Level for Vendor Evaluation

The organizational level for Vendor Evaluation is the purchasing organization: Each

purchasing organization evaluates the vendors that have been assigned to it. The

system does not support a comparison of Vendor Evaluations at the higher company

code level.

Vendor Evaluation uses the following master data:

·

Vendor master record

·

Material master record

·

This section describes the most important elements of Vendor Evaluation:

Overall Score

Main Criteria

Sub criteria

Scoring Range

Weighting of Scores

Purchasing info record

Overall Score

The overall score represents the complete evaluation of a vendor. It is a combination of

the scores the vendor has achieved for all the main criteria. You can compare different

vendors on the basis of their overall scores without generating a detailed analysis of

their evaluations.

Main criteria

The main criteria form the basis for assessing the performance of a vendor. The system

calculates the overall score for a vendor from the main criteria scores. You can evaluate

vendors according to several main criteria, which you consider important. The scores for

the main criteria are a more accurate representation of the performance of a vendor than

the overall score.

Subcriteria

Subcriteria are the smallest units to which scores can be assigned in Vendor Evaluation.

The system calculates a score for the higher-level main criterion based on the scores a

vendor receives for the various subcriteria. There are three types of subcriteria:

·

Manual

·

Semi-automatic

·

They are named after the different methods of scoring. The individual scoring methods

fulfill different purposes and involve different kinds of maintenance.

Scoring Range

To compare the performance of one vendor with another, it is necessary to establish a

range (or scale) of possible scores. You can define your own scoring range from the

worst- to the best-possible achievable score. The examples in this documentation are

based on a scoring range of 1 to 100 points. This scale provides you with a good

overview and also permits quite a finely differentiated rating of individual vendors.

The scoring range is defined when the system is configured.

Weighting of Scores

The scores a vendor is awarded for main criteria can be weighted differently to reflect

differences in the significance of the criteria.

Weighting Factor

By using weighting factors, you can increase or reduce the importance of certain criteria

when a score is calculated at the next highest level.

Suppose a vendor receives 80 points for the criterion Price and 80 points for the criterion

Service. Since the price of the material is more important to you than the service the

vendor provides, you assign the criterion Price a weighting factor of 3 and the criterion

Service a factor of 1. The 80 points for Price are then worth three times more than the 80

points for Service when the overall score is calculated.

Weighting Keys

A weighting key is an identifier under which the weighting factors for a number of main

criteria can be grouped together and saved. If you know that you will want to carry out an

evaluation repeatedly with certain main criteria and certain weighting factors, you can

save this combination under a weighting key. When you carry out the next vendor

evaluation, just enter the relevant weighting key instead of entering a weighting factor for

each individual criterion. The system then automatically sets all the weighting factors.

Evaluating Vendors

The evaluation of vendors is subject to certain preconditions. Before you begin, you

must consider the following:

·

Have you maintained the system settings?

·

Do you have the required authorizations?

·

Which vendor do you want to evaluate? (vendor key)

·

organization key)?

Which purchasing organization is to evaluate the vendor (purchasing

·

Is this the first time the vendor has been evaluated?

·

If not, when was the last evaluation?Automatic