How to order non-stock materials

Siva Prasad
A free video tutorial from Siva Prasad
SAP Trainer and Consultant
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SAP MM Training - in Plain English

You know English ? That's more than enough to learn SAP MM

26:00:09 of on-demand video • Updated August 2018

  • Understand the major business processes in SAP MM
  • Understand how to complete the business processes in SAP MM
  • Understand key technical concepts ( apart from the business processes ) like Movement Types
  • This course is NOT just a short HOW-TO. It deals with all the important business processes in SAP MM
English [Auto] What you're going to do is look you're both stock materials and non-stock materials in the same order and see how they're different. So if you have created a material coffee beans 06 and Buist to order stutterers ever Everglades stutterers dinners. I'm not sure that's butcher. What is it all one type in tourers 0 1 and tons of material. But we want to create it as a non-stock material. So use and Laeg and hato Nazz is used that a basic one where using a condom select Chicago one stirs whatever basic unit of measure each. It's not measured in pounds or and some that didn't do don't suit. No. Let's go to Amy 21 in support clothes and one and say coffee beans Zettel six hundred pounds weight man STRs USDA You got us one say when we are ordering thousands Dewar's whoops. I see I read that. What's the problem you see the warning of the bottom. Count assignment mandatory. For starters you didn't say that for coffee beans right. The obvious reason is coffee beans are a different material type and stutterers are different material. So this one has a stock material and this one is a non-stock. Do you get and how are the different Bazan the material type. This uses auto which for me to type this uses and Laeg for his material. So I go back to the material master. If you have questions in the different material types how they are different and see more examples of different kinds of materials. So SEP is not allowing us to go forward because it's not a warning it's an error. We can see it. Well you can see it technically but you can't really do anything with it. So how do we fix this problem. Well we've got to do something like this. We've got to put in the code the same kind of key chain means cost simple. Enter Ben underlining them level of course put a price and then the line item level good account assignment try and put a cost center here. If you were picky for constant of a possible list of values you'll see that K stands for cost center. What's really happening here. Why is it that the coffee beans is nonrecourse costs and the Masters need a constant. Well then coffee's ordered goods are received coffee stays in stock in the barrels. So coffee is really stock. Let me go back here. So when you order coffee coffee sis stays in stock in the barrels because it's a stock rooted in raw material. And you know Stoner's a raw material too. But but you have created us and Laeg non-stock Menudo. That mean the system does not track the stock. But there is still stock. But system does not like the stock and it's not treated as slug. So when non-stock materials like Stowers or baking sheets are ordered they don't stay iStock they are deemed as consumed immediately. Now I know it's confusing. So just give it me here. Men coffee beans are receiving put in stock. It's sitting there waiting to be consumed. Right. So the principle is real simple. This is the principle of culinary accounting software. Every transaction there should be an equal and opposite amount of entries equal credits equal to adults. Think of it like a seesaw. Put something here we put something here. Equal and opposite. It's balanced right on one hand. We have the vendor say the value of a thousand dollars for want hundred pounds of coffee and we have hundred pounds of coffee to get seems balanced. So we have up a hundred pounds and get paid the vendor of posable us Hobart non-stock materials let's say we awarded $2000 what those dinners were Masoom Brenda and we don't store them as stock save we get 10000 stickers out of the well they are there in the world. Nobody's going to eat them. But today they're deemed as consumers. What does it mean. It's not in the stock but it is in the warehouse. That's totally confusing. Definitely. Well that kept the physical in the warehouse but the system is not back in the stock so there are three things yet they are physically in the way Rattle's. Second point is this is not tracking not tracking the stock market Muallem. And we are seeing the stock is deemed us consumed. So they're physically in the metals. The stock has consumed was. But SFP is not tracking. You've got to understand these three things really understand what non-stock muddied the so logistically speaking. Like I said there's no difference between coffee beans and Stillers in terms of procurement they're there in the warehouse like any other stock but SEP is not backing the stock because we have created that material as a non-stock right now NSA is not tracking it. That means that it is off the books. And when something goes off the books it has to be consumed or damaged. When I mean consumer there are many possibilities in a shop that was coffees did or could consume it or the coffee stores could be burned or gone off the books. So when that consumer somebody is bearing the cost of it that's the bottom line. How can somebody bear a cost for the material somebody in the company that's done using what is called as a cost center. Now there are other ways of consuming for example a customer could consume some stock and that's called consumption. We have seen Saddam a production order meaning in order to manufacture we could consume raw material. So that's called consumption against the production order. Way there are different ways in which stock can be consumed and the simplest way is consumption against the consent of our department. The word costs and or don't let that words carry you the cost center is a technical word for the department. So Ward Parkman's does my coffee shop have a have a marketing department. They can get all flyers and you know advertising my coffee shop. I have a production department making cakes pastries and all the good stuff. I have my Walkman. They can get employees salaries for motions etc. etc.. I have a finance department didn't get a focal thing each department will incur some costs the H.R. department may need they put for printing paper is a cost of the entire department as it can and people that used to be procured. So all orders of papers that are coming in will be charged against the H.R. department if that's the only department that uses it. While not putting in stock and charging directly to the H.R. department. That's a good question. We'll get to that in a minute. So far no good this cost center and creating a cost center is creating a code for a department as simple as that. OK. How to create a cost center transaction for these the transaction to create a cost center is key is 0 1 and the controlling it is 2000. That's what we being already using to clear the cost center for each of the jobs you know on Misratah from today. Give it to name the job department or description does matter where some responsible say and responsible and simple category say Administration it's all over session in the hierarchy core meeting in August go and select from the possible list say the Finance and Administration company quote of course is you 0 one and currencies USD that will be divided automatically. Whoops. OK. Since the company code is not needed let's fix this problem real quick go to under-price structure assignment Some strolling sign company quote the patrolling area so that 2000 pick up new entries and use it all one way about this step. It's not important for us and done some magic behind the scenes. So let's go back and try this again. Genius is 0 1 Java 0 1 What is the name of the job department. The person responsible is Subra in the business area. These business area something and Cypriote know let's go try to order those dinners again. Or Bozon one an order coffee beans for the first item and stutterers for the second. It says a conversation mandatory we have said in the column of account assignment column for the value key the price price could be $10 $20 whatever. The to sign when we are going to say age 0 1 so what we're essentially saying is the cost of one quantity of STRs whatever the price is the cost of stutterers needs to be consumed by the H.R. department. And don't worry about the zero. We're going to fix this. We're trying to understand this concept. The cost of Stillers is consumed by this department so when something is consumed it's no longer in-stock done. It's consumed already. That's the reason why the ECB does not really track stock because it's consumed it's done. You can physically keep it in the windows because you don't have you don't want to keep your STRs is right by your desk mate. You could keep it in the windows but purely from a consumption perspective that consumers don't. They are no longer tracked as stock Renda has been paid and some department has consumed it. And that's old would be a good way. Now let's go fix this problem version zero is not defined for fiscal year 2016. The way to fix that problem is we open a new window good or Evie this is all controlling. So you don't have to really understand somebody else and fix these things for you. So since there is no finance consultant we are doing it all on our own. And controlling area 2000 click OK and it is a lot the cost center. Right. So the said that go back the back go back and come your once and no. And so. OK. Evy again you to and go to work in zero settings for each gustily we're here to your copy to pose on line into 2016. That's the current Siskiyou and Siri does doesn't matter any chance spoke up Nitze this just winter soon Bachman's. In fact the more we want to end it butches order blah blah blah. Looks like that's not Graflex sinless. Go back and come again. You to send the document. No I am ead 21 an what you render the whole Bozon nothing else is taken care of you. You start entering the materials coffee beans. The first item in STRs second Batan is then rendered free. You know what to do. And Durkee here and then place you can and does its job as the department is going to consume the cost of that material. That's it. Now you can see the transaction right. What have you seen here. Creation of costs and transaction. Q Is it a one on the event or some duties. It doesn't matter what details and event or key is the current assignment. Forsters under the canvas and when we are under admin H.R. whatever the costs into the P.F. created. So the cost of this material whatever the quantities is being absorbed or consumed by this cost center and that's you call them into account the Feinman is a modifier that Marty for so Acoma assignment is really a modifier to the way coding is done. And like I said the logistics does not change Yagoda seem Maggio receive Siebold the materials you go to see him and my auto P for both the materials. Pure nothing really changes from a logistics perspective. The only change IIS from an accounting and consumption perspective and the account assignment column is used to affect that mortification. In this case you are consuming against a cost center. There are other ways to consume it which you will see in the next set of chapters. So we can create more centers. Marketing could be another call center to create a middle car flyer and then consume it against a costs into marketing. Right. So the marketing department needs flyers well-beaten zoo against the marketing department person. So anybody creating a purchase order for this material should have to enter key here and then enter the call center.