Saturday, June 20, 2026
Friday, June 19, 2026
Question no 4131 : Effective Price Calculations
In SAP Material Management as at S/4 1909, Effective Price Calculation in "Info Record List Display Report (Transaction code 1E1M" includes/considers which of the following?
(more than one answers)
A) Freight costs.
B) Discounts.
C) Customs and Duties (Taxes).
D) Surcharges
E) All of the above.
.
Answer: A, B, C, D, E
(more than one answers)
A) Freight costs.
B) Discounts.
C) Customs and Duties (Taxes).
D) Surcharges
E) All of the above.
.
Answer: A, B, C, D, E
Key Price Tiers:
- Gross Price: The base price of the material before any deductions or additions.
- Effective Price: The resulting price after deducting all discounts (cash, quantity, special) and adding surcharges.
- Net Price: The final payable amount. Calculated by taking the Effective Price and adding delivery costs (freight), packaging costs, and relevant taxes.
Price Calculations example:
- Purchase Order for a Material with Quantity of 100 units
- Gross Price: $10.00 per unit
- Standard Discount (2%): -$20.00 (2% x $1,000)
- Surcharge: +$70 fixed amount
- Freight Charge: +$50.00 fixed amount
- Tax: 10% based on Gross Value
- Payment Term Cash Discount (2% in 30 Days)
- Gross Value: Gross Price × Quantity
- Gross Value: $10.00 per unit x 100 units
- Gross Value: $1,000.00 (or $10.00 per unit)
- Net Value: (Gross Price × Quantity) - Discounts + Surcharges
- Net Value: ($10.00 per unit x 100 units) - (2% of $1,000) + ($70)
- Net Value: $1050.00 (or $10.50 per unit)
"Info Record List Display Report (Transaction code 1E1M" offers the calculation of "Effective Price" calculation as follow:
- Effective Value: Gross Value - Standard Discounts + Surcharges + Freight + Taxes - Cash Discount
- Effective Value: $1,000 - $20 + $70 + $50.00 + (10% x $1,000) - (2% of $1050)
- Effective Value: $1,179.90 ($11.79 per unit)
Important Note: in SAP MM Condition calculations in the PURCHASING DOCUMENTs, the Calculation Schema (Pricing Procedure) dictates how the system computes the final procurement price. It defines the exact sequence of conditions (such as gross price, discounts, freight, and taxes), the mathematical operations (addition or subtraction), and the subtotals required to arrive at the final net or effective price. Therefore, the derivation of price values are configurable based on the company requirements. In this context paragraph, the Payment Term Cash Discount is often designed to be STATISTICAL in Standard SAP.
Thursday, June 18, 2026
Wednesday, June 17, 2026
Question no 4130 : Cash Discount "SKTO" in MM Purchase Order
In SAP Material Management, note the Cash Discount of Standard Condition Type "SKTO", how did the system retrieve the 3% Cash Discount of "SKTO" Condition Type ?
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Notes on Condition Type SKTO:
(only one answer)
A) Purchasing Info Record.
B) Material Master Purchasing data view Condition Record.
C) General Condition.
D) Vendor Master Payment Term in the Purchasing Organization data.
E) Rebate Condition.
.
Answer: D
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- In SAP MM (Materials Management) and SD, SKTO is a standard condition type used to calculate and display cash discounts (prompt payment discounts). It retrieves the discount percentage based on your agreed payment terms and displays it for information purposes during pricing.
- Statistical Condition: SKTO is marked as statistical in the pricing procedure. This means it only calculates for information, it does not alter the actual net value of the material or affect the final inventory valuation.
- Payment Terms Trigger: The discount rate and amount are automatically fetched from the payment terms maintained in the vendor master or Purchase Order (PO). It is important to note that there 2 payment terms in the vendor master; one in the company code level (for non-po based invoice) and another one in the purchasing org data level (for po based invoice).
- How it works in MM:
- When you create a Purchase Order (ME21N), the system applies the Payment Terms (e.g., Pay within 14 days, get a 2% discount).
- The SKTO condition automatically reads these payment terms and calculates the potential discount amount.
- Because it is statistical, the Purchase Order remains correctly valued at the gross price, but the system stores the SKTO data so the Finance team knows exactly what discount to expect if the invoice is paid early.
- Accounting Impact: When the actual invoice is processed in Logistics Invoice Verification (MIRO), the cash discount is handled directly by SAP's financial accounting component (FI). Depending on your company code settings, the discount taken is either posted to a cash discount received/cleared account or reduces the material's inventory value.
- In SAP, you can post vendor invoices in transaction MIRO using either Gross (Document Type RE) or Net (Document Type RN) methods, primarily depending on how you want to handle cash discounts and taxes:
- Gross Invoice Posting (Document Type: RE):
- This is the default, standard method in MIRO. The vendor is credited with the full invoice amount (including taxes), and the cash discount is not considered during the initial invoice entry.
- Cash discounts are only recognized when the payment is actually made, reducing the cash discount account.
- d
- Net Invoice Posting (Document Type: RN):
- The invoice amount is entered exclusive of the cash discount. The system automatically deducts the expected cash discount from the stock or cost account. This means that the cash discounts are already realized when the invoice is first posted.
- The discount amount is posted to a Cash Discount Clearing account and then cleared at the time of payment.
- Organizations that strictly enforce automatic cash discount deductions and want their inventory/material costs accurately reflected at the net cost immediately.
- Net invoice posting via transaction code MIRO is an acceptable practice in accounting, but its acceptability depends heavily on strict internal controls and consistent accounting policies.
Tuesday, June 16, 2026
Monday, June 15, 2026
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Sunday, June 14, 2026
Saturday, June 13, 2026
Q&A in Class (2026-06-12) EWM100
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Question: Review of Expected Goods Receipt for PO with ERP to EWM Integration (EWM side use provided FIORI App).
Answer: Expected Goods Receipt (EGR) in SAP EWM is a temporary, EWM-specific document created in advance based on an open Purchase Order or Production Order. It acts as an electronic template that allows warehouse operators to process and receive goods even before the formal inbound delivery is created in the ERP.
Expected Goods Receipt (EGR) is relevant for embedded SAP EWM, but it operates differently than it did in decentralized or older ERP systems.In an SAP S/4HANA embedded EWM environment, the standalone "Notification of Expected Goods Receipt" and persistent "EGR" database documents have been eliminated. Instead, EWM accesses purchase orders and manufacturing orders from SAP S/4HANA directly in real-time.
How it Works in Embedded EWM:
- Transient Documents: Rather than storing a separate EGR document in EWM, the system emulates "transient" EGR data on the fly by reading directly from the open purchase or manufacturing order.
- No Middleware: Since both EWM and Inventory Management are in the same S/4HANA system, you no longer need to replicate or update transactional EGR data between separate systems.
- Delivery Creation: This transient data still acts as a template, allowing warehouse operators to manually or automatically create inbound deliveries in EWM based on the purchase order or production order.
- Synchronous Goods Movements: Embedded EWM supports "Synchronous Goods Movements," allowing you to post the goods receipt directly in S/4HANA Inventory Management or Production without even needing to create an inbound delivery.
Click below to view the Process and related configuration:
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Question: Review of EWM Process steps in class:
Click below to overview the Processes in EWM
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Question: Review of Serial Number Processing from ERP to EWM system.
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Answer: Serial number processing in SAP EWM provides end-to-end traceability for individual items. Serial numbers are mapped from the ERP system and captured or generated during goods receipt, tracked throughout warehouse movements (putaway/picking), and validated upon goods issue to guarantee absolute item accuracy.
Process steps:
Goods Receipt (GR): EWM copies serial numbers from the ERP inbound delivery. If missing, you must enter them during warehouse task confirmation or use Provisional Serial Numbers (which automatically assign a placeholder if numbers aren't known yet).Putaway & Picking: You can assign serial numbers manually or automatically. During RF transactions, EWM allows you to scan or input entire serial number ranges instead of typing them out individually.Goods Issue (GI): Serial numbers are copied from the outbound delivery. If EWM picks in the background, it automatically assigns known serial numbers (e.g., using FIFO) to complete the pick.
Master Data & Customizing:
Serial Number Profiles: Assigned in the material master plant stoage view 2. Both the ERP backend and EWM must share an identical profile configuration.
ERP configuration: IMG - MM - Purchasing - Serial Numbers - Determine Serial Number Profile
Harmonized Profiles: From S/4HANA 2020 onward, you can use harmonized serial number profiles to maintain both ERP serialization rules and EWM requirements in a single profile.
EWM configuration: IMG - SCM EWM - EWM - Master Data - Product - Serial Number Profiles - Harmonized Serial Number Profiles - Define Serial Number Profiles
Length Constraints: While S/4 EWM supports serial numbers up to 30 characters, it is highly recommended to restrict them to 18 characters to maintain master data compatibility with legacy SAP ERP systems.
Click below to overview the Processes in EWM
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Question: Review of Batch Processing from ERP to EWM system.
Answer: SAP Extended Warehouse Management (EWM) Batch Number Processing tracks groups of identical products, such as managing expiration dates, manufacturing dates, and quality statuses. It integrates batch records between the core ERP system and EWM, allowing batches to be created, determined, and updated across both inbound and outbound warehouse tasks.
Essential Transactions:• Batch Master Maintenance: Use MSC1N (Create), MSC2N (Change), and MSC3N (Display).• Batch Determination: Configured in the system to automatically filter or propose optimal batch numbers during the outbound picking process. (Logistics - Central Functions - Batch Management - Batch Determination - Batch Search Strategy - For SD - Use VCH1 (Create), VCH2 (Change), and VCH3 (Display).
Click below to overview the Processes in EWM
https://docs.google.com/Batch Processing for EWM Inbound
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Question: Review Physical Inventory in EWM with available Fiori Apps.
Answer: Physical Inventory (PI) in SAP Extended Warehouse Management (EWM) is the process of verifying actual warehouse stock quantities and conditions against system records to ensure accurate financial reporting and stock control.
Click below to overview the Processes in EWM
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Thursday, June 11, 2026
Question no 4129 : Kanban call for Scheduling Agreement
In SAP MM as at S/4 1909, Kanban Replenishment with Control Type "2 Working with Scheduling Agreement" expects which of the following pre-requisites ?
(more than one answers)
A) Storage Location with PSA for Kanban assigned to the Scheduling Agreement item.
B) Kanban Indicator in the Scheduling Agreement item.
C) Kanban Indicator in the Material Master Purchasing data view.
D) MRP 4 data view for Storage Location without Planning in the Material Master MRP 4 data view.
E) A Source List.
.
Answer: A, B
The following setup is desirable:
. Replenishment Strategy for External Procurement with Control Type "2 Working with Scheduling Agreements" with default Goods Receipt Movement Type.
. PSA assigned to SLoc for Kanban.
. MRP Area assigned to SLoc for Kanban.
. Material Master MRP1 vew assigned to MRP Area (Kanban SLoc) with MRP type "ND" for No Planning.
. Extend Material Master to the Kanban SLoc.
. Scheduling Agreement item assigned to Kanban SLoc.
. Scheduling Agreement item detail (via Additional data) assign to Kanban Indicator "X".
. Setup Control cycle for the Material with the Replenishment Strategy and assign the Scheduling Agreement item to it.
(more than one answers)
A) Storage Location with PSA for Kanban assigned to the Scheduling Agreement item.
B) Kanban Indicator in the Scheduling Agreement item.
C) Kanban Indicator in the Material Master Purchasing data view.
D) MRP 4 data view for Storage Location without Planning in the Material Master MRP 4 data view.
E) A Source List.
.
Answer: A, B
The following setup is desirable:
. Replenishment Strategy for External Procurement with Control Type "2 Working with Scheduling Agreements" with default Goods Receipt Movement Type.
. PSA assigned to SLoc for Kanban.
. MRP Area assigned to SLoc for Kanban.
. Material Master MRP1 vew assigned to MRP Area (Kanban SLoc) with MRP type "ND" for No Planning.
. Extend Material Master to the Kanban SLoc.
. Scheduling Agreement item assigned to Kanban SLoc.
. Scheduling Agreement item detail (via Additional data) assign to Kanban Indicator "X".
. Setup Control cycle for the Material with the Replenishment Strategy and assign the Scheduling Agreement item to it.
Tuesday, June 9, 2026
Thursday, June 4, 2026
Question 4128 : Scrap Factors calculations
In SAP PP as at S/4 1909, consider the following settings:
Finished Product set with Assembly Scrap Factor 2%In the BOM item Detail for Component T-S125Operation Scrap Factor is set as 6%Net ID is Mandatory due to entry of Operation Scrap FactorComponent Scrap Factor set as 5%
What is the expected Scrap Factor calculation for the Component T-S125
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A) 112.
B) 105.
C) 106.
D) 108.
E) 102
Answer: A
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Wednesday, June 3, 2026
Tuesday, June 2, 2026
Question 4127 : Assembly Scrap Factor not used for Component Calculation
In SAP Product Costing as at S/4 1909, in which circumstances where the Assembly Scrap Factors is not used for Component Qty calculations ?
(only one answer)
A) Component Scrap Factor is assigned to the Components of the Assembly.
B) Routing Operation Scrap Factor was introduced.
C) Operation Scrap Factor in the BOM item detail of the Component with a Net ID indicator.
D) Operation Scrap Factor in the BOM item detail of the Component without a Net ID indicator.
E) BOM Header set with Net ID indicator.
.
Answer: C
When an Operation Scrap Factor is assigned to the BOM item detail of a Component, the Net ID indicator is mandatory and this will then not use the Assembly Scrap Factor.
(only one answer)
A) Component Scrap Factor is assigned to the Components of the Assembly.
B) Routing Operation Scrap Factor was introduced.
C) Operation Scrap Factor in the BOM item detail of the Component with a Net ID indicator.
D) Operation Scrap Factor in the BOM item detail of the Component without a Net ID indicator.
E) BOM Header set with Net ID indicator.
.
Answer: C
When an Operation Scrap Factor is assigned to the BOM item detail of a Component, the Net ID indicator is mandatory and this will then not use the Assembly Scrap Factor.
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