PA transfer structure

A rule that assigns costs and revenues from other applications to the quantity fields and value fields in Profitability Analysis (PA).

PA transfer structures are used to settle orders, assign direct postings to profitability segments from FI or MM, and allocate activities in CO.

A PA transfer structure can consist of any number of value field assignments. A value field assignment is the assignment of individual cost or revenue element groups, or variance categories, to the desired value or quantity field. The cost and revenue elements are determined by cost and revenue element groups or by variance categories.

The value field assignments in a PA transfer structure must be:

• Complete -

All cost and revenue elements that receive costs or revenues must be assigned to the structure.

• Unique -

Each cost or revenue element can occur only once within the structure.

PAN

A tax number assigned to individuals and companies in India for the purposes of recording their income tax.

Taxpayers are issued a card with their PAN (permanent account number), and are required to cite their PAN in all correspondence with the Income Tax Department.

parent company

The parent companies are those companies in a subgroup that have a substantial or dominating influence over other subgroup companies.

park

A function that creates an invoice document in document parking and saves the data in the database.

Before saving the data, the system performs consistency checks.

You use "document parking" if:

• Information required to post the invoice document is missing and you do not want to re-enter data.
• The balance of the invoice document is not zero.
• The following updates must take place:
• Logging of document changes
• Informative PO history
• Data for advance tax returns
• Index for duplicate invoice check
• Vendor open items

You can change, delete, save as complete, or post parked invoice documents.

parked invoice document

The parked data of a vendor invoice saved in the SAP System using the "Park Incoming Invoice" function.

You park invoice documents if:

• Information for posting the invoice document is missing, for example, the balance is not zero.
• The business process of invoice entry is performed in several steps, forexample, by clerks responsible for invoice entry and by invoice verification staff.

When parking documents, you must enter the following:

• Document date
• Invoicing party
• Vendor
• Account assignment objects

The following updates take place:

• Document changes are logged
• Data for advance tax returns
• Index for duplicate invoice check
• Vendor open items
• PO history

You can change, complete, delete, or post parked invoice documents. However, they can no longer be put "on hold."

partial clearing

A transaction in which open items are not cleared to their full amount.

partial delivery

A quantity of goods received that is less than the quantity ordered less the underdelivery tolerance.

partial payment

A payment in partial settlement of an outstanding invoice amount.

partial settlement

Settlement with regard to a periodic rebate arrangement, where the settlement date lies before the validity end date of the rebate arrangement.

particulars of examination carried out

The actual results or findings of processing a customs declaration and accompanying documents. This includes taking the necessary measures to assess the customs duties owed.

partner

A business unit involved in the value-added process. Partners can be multidimensional - that is, they can consist of the following multiple organizational units:

• Plant
• Company code
• Profit center
• Business area

partner

An individual in or outside your organization who is of commercial interest and can be contacted during a business transaction.

A partner can be a natural person or a legal entity. Partners in an organization include sales personnel. Parnters outside an organization include:

• Customers
• Sales prospects
• Contact persons

partner cost component split

A cost component split with cost component groups, providing transparent information on the contribution of the different organizational units (partners) to the value-added process.

partner determination

The process during which the system automatically searches for and enters business partners in a document. For example, a user creates a sales order and enters a sold-to party. During partner determination the system determines the ship-to party, bill-to party and payer and enters them in the document.

partner determination log

A display of the sources from which the system determines the partners for a document.

partner determination procedure

A plan that specifies how, when, and from what sources the system determines partners in a business transaction, what partner functions are mandatory or suggested in this transaction, and what rules apply to these partner functions.

partner sales activity

Documentation on communication with a customer, sales partner, or competitor.

Example

Sales calls

Telephone calls

Sales letters

partner screen

A detail screen in the sales order.

The partner screen displays the partner functions and the partners involved in processing the sales order.

partner type

Classification of partner functions.

The partner type controls the type of master records in Customizing in which a partner can be created.

In Sales and Distribution the partner types are as follows:

• Customer (debtor)
• Vendor (creditor)
• Employee (personnel)
• Contact person

If a partner is in several partner types, you must create several master records for this partner.

Example:

If a customer delivers goods to you, you must have a customer master record and a vendor master record for the customer.

partner version

Unique key that defines a direct partner combination.

party liable to duty

A person responsible for paying or arranging payment for customs duties.

Passenger Name Record

The booking code under which the reservation for a trip is stored in the computer.

The Passenger Name Record (PNR) consists of the name, flight segment, and address of the passenger. It is defined by means of a combination of five or six letters and numbers.

In the PNR, additional information on the traveler or special service requests can also be included.

One PNR is created for each travel plan in R/3 Travel Planning.

payables

The total amount due to creditors.

This information includes the type, the amount, and the due date of the debts. Payables may include amounts payable to banks and suppliers, as well as customer down payments.

payables/receivables aging report

A report that shows payables and receivables arranged by the age of the open balances.

German trade law requires the Payables Aging Report in the notes to financial statements.

payee

A business partner to whom payments are made.

payer

A person or company that pays the bill.

The payer may not be the bill-to party.

payment advice note

A notification of a delivery, payment or the receipt of a letter of credit (in foreign transactions).

payment agreement

In Brazil, an agreement established between a company and a bank, whereby the company authorizes the bank to accept its customer payments. As defined in the agreement, the bank then transfers these payments to a specified house bank of the company. A company may have such payment agreements with multiple banks (including their own house banks), and it may even establish more than one agreement per bank for each type of payment method.

In Portuguese, the payment agreement is known as convênio.

payment bank ID

Key of a bank that accepts customer payments of a company that has established a payment agreement (in Portuguese, convênio) with the bank.

payment block reason

The reason why a certain open item or all the open items of a customer or vendor in a certain company code cannot be paid.

payment blocking indicator

An indicator that allows you (by entering a payment block) to block an account or individual items for payment.

The payment blocking indicator is placed in the customer or vendor's master record, or in the line item.

payment card

Term for all payment card categories.

payment card category

A class of cards used for payment.

The main payment card categories represented in the SAP System and CRM Online are credit cards, customer cards, and procurement cards.

payment card company

A company that owns a payment card.

For example, the American Express Company owns the 'Optima' card.

payment card plan

A plan attached to the sales order containing information on the payment cards used, as well as authorization and billing information.

payment card plan item

An information element that together with others makes up a payment card plan.

Some items represent payment cards with information on the card type, card number, expiration date and billing. Other items contain authorization information.

payment card type

The card name, such as Visa, American Express, or MasterCard.

payment form number

A number for a preprinted payment form that is sent to a business partner as part of correspondence - for example, as a dunning notice.

The open items to be offset by the anticipated payment are also noted in the payment form number.

payment guarantee procedure

a method of assuring that an organization receives payment for products or services it sells or leases. Payment guarantee procedures include export insurance, letters of credit, and payment cards, such as credit cards.

payment history analysis

The analysis of customer payments concerning the frequency with which payment deadlines were exceeded and cash discount granted.

payment lot

The payments that are combined to be processed together.

These payments are incoming and outgoing payments that have been initiated by the business partner. A payment lot can either be created manually or automatically (through data transfer from electronic data media).

payment medium format

A format that controls how payment and debit memo orders for the bank are created.

The payment medium formats are defined based on the format specifications as published by banks or central bank committees.

Examples

Document-based payment media: Bank transfer forms, Z1 forms

Non document-based payment media: DME, EDI, or Internet payments

Country-specific formats: ACH, DTAUS0

International formats: MT100, IDoc

payment medium format supplement

A key used in a business context to describe data of selected payment medium format.

For example, a payment medium format supplement can be printed in the code line of the payment medium or transferred into the appropriate field during data medium exchange.

Example

With debit memos, you can use this to help distinguish between collection and direct debiting procedure.

Payment Medium Workbench

A tool for creating payment media, based on a generic payment medium program and specific Customizing settings.

payment method

A method that specifies how payment is to be made: check, bill of exchange, or bank transfer.

Prerequisites that have to be met are defined so that a payment method can be used (for example, bank information is necessary for transfers, the address for checks, limits for tax reporting, and so on).

payment notice

A notification sent to a customer or an internal department that either confirms that a payment has been made or requests the customer or department to settle payment differences or allocate payments.

payment on account

A payment that is assigned to an account but (in contrast to a down payment or partial payment) is not yet assigned to a particular accounting transaction.

payment tolerance

The rules for processing payment differences.

These rules specify the maximum permissible difference between the actual payment amount and the amount agreed for payment, as well as rules for posting residual items (in the case of these maximum amounts being exceeded).

payment transactions

The processing of the outgoing and incoming payments of an organization.

per diem and flat rate settlement

The payment of an employee's travel expenses by per diem or flat rate

Reimbursement is calculated without consideration of actual travel expenses.

There are three different kinds of rates:

• flat rates for transportation costs
• per diems for meals
• per diems for accommodations

per diem for accommodations

The expenses incurred for accommodations are calculated per overnight stay with a specific per diem rate.

performance type

period accounting

A type of presentation that shows all the costs of a period.

Whereas cost of sales accounting includes only the costs incurred for the revenue received (an increase in the finished goods inventory cannot be reported as revenue), period accounting includes all the costs of the period, regardless of whether the corresponding revenue was earned in that period.

period control

A function that determines the start or the end of depreciation calculation at the time of a fixed asset acquisition or retirement.

There are many different country-specific regulations (particularly for asset acquisitions) that govern how the depreciation start date (asset value date) can be determined from the date of the posting.

Period control is part of the internal calculation key. You can specify individual period control for each transaction type (acquisition, retirement, transfer).

Examples of period control provided in the SAP System include:

• Pro rata temporis
• Pro rata at mid-period (half month rule)
• First year convention

period control method

A system object that controls what assumptions the system makes when revaluating asset transactions that are posted partway through a period.

Using the period control method, for example, you can instruct the system only to start revaluating asset acquisitions in the first full month after their acquisition.

The period control method allows different sets of rules for different types of asset transactions, for example, acquisitions and transfers.

period lock

A procedure that locks planned and actual transactions for a combination of controlling area, fiscal year, and version.

period status

The status for material ledger master data in a posting period:

• New objects
• Period opened
• Price change completed
• Values entered
• Quantities and values entered
• Price determined at single level
• Price determined multilevel
• Closing entry performed
• Closing entry reversed

period-end closing

The period-end closing process in Cost Center Accounting (CO-CCA) includes periodic transactions such as:

• Periodic transfer postings
• Distribution
• Assessment
• Calculation of imputed costs

These transactions are performed at the end of the period after the primary cost postings for the period have been made.

The period-end closing process in Cost Object Controlling includes the following business transactions:

• Overhead calculation
• Work in progress calculation
• Variance calculation
• Settlement

period-end partner

A tool for executing and monitoring activities in the course of period-end closing.

periodic allocation

An allocation method by which the costs collected on a cost center during a period are allocated according to allocation bases defined by the user, and not according to the exchange of activities between cost centers.

Periodic Declarations

A part of Foreign Trade (FT) that deals with the creation and management of customs declarations and related activities.

FT's Periodic Declarations functions include creating:

• INTRASTAT, EXTRASTAT, and customs declarations
• Goods catalogs
• Japan's MITI declaration
• The VAR declaration for Switzerland
• Shippers' Export Declarations for NAFTA
• KOBRA declaration for Germany

The SAP Foreign Trade/Customs application handles periodic declarations for the following countries:

• Austria
• Belgium
• Canada
• Denmark
• Germany
• Japan
• Finland
• Greece
• Spain
• France
• Ireland
• Italy
• Luxembourg
• Mexico
• Netherlands
• Portugal
• Sweden
• Switzerland
• United Kingdom
• United States of America

periodic extract

A data transfer method that updates the totals records of the consolidation staging ledger with each general ledger-related business transaction.

At regular intervals, the data is earmarked for an extract and imported into the consolidation processing ledger.

periodic reposting

A function that lets you correct postings to cost centers.

Periodic reposting is an allocation method that uses rules defined in the form of cycles to credit allocation cost centers. These allocation cost centers are used to collect the postings relevant for cost accounting.

periodic unit price

A price that changes periodically as a result of goods movements and invoice entries.

The periodic unit price is calculated by dividing the value of the material by the quantity of that material in inventory. It references the base unit of measure and price unit in the material master record.

The price is recalculated when single-level or multilevel material price determination for the material is performed.

The periodic unit price is used in single-level and multilevel material price determination to valuate the materials for the closed period. For the current period, the material is still valuated using the standard price.

You can carry the periodic unit price in up to three currencies and three valuation views.

period-specific condition

A supplementary condition, effective within a certain period of time covered by a main (principal) condition.

Example 1

Two business partners agree a 3% discount on a price in the period 01.01 to 03.31. An additional period-specific condition of 1% applies between 02.01 and 02.15.

Example 2

Under a rebate arrangement that is valid from 01.01 to 03.31, periodic interim settlements are effected in addition to final settlement.

In the process of interim settlement accounting on 16.02, the amount due under the period- specific condition that is valid for the period 02.01 to 02.15 is determined and settled.

At the time of final settlement on 03.31, the sum payable is reduced by the amount paid in the settlement effected on 02.16.

personal ID

A personal identification number assigned, in Greece, to natural persons. In Greek, it is known as arithmos taytotetas.

personal ID

A personal identification number, in Thailand, assigned to all Thai citizens over the age of 15.

The number is shown on the personal ID card.

personal identification number

A number that a cardholder uses to prove that the cardholder is the legitimate user of the card.

personal ledger account

A bank account, in India, that businesses use solely for the purpose of remitting excise duty to the excise authorities.

When you are due to remit excise duty, you transfer the appropriate sum to the personal ledger account, from where it is deducted by the authorities.

physical inventory

The recording of actual stock levels (quantities) of materials by counting, weighing, or measuring at a given storage location at a specific time.

physical inventory count

The determination of the quantity of stock physically on hand by counting, weighing, measuring, or estimating, and the recording of the results in the system. Any necessary adjustments to book inventory are subsequently made on the basis of this data.

physical inventory document

A document that is the basis for a physical inventory (stocktaking process).

The physical inventory document is used to:

• Plan and perform the physical inventory
• Record the count data
• Post any differences revealed by the count

physical inventory price

The tax-based and commercial law-based prices can be updated in the material master record, in balance sheet valuation of material stocks,

You can save different partial results from balance sheet valuation using the so-called physical inventory prices.

You can use these partial results for various procedures in balance sheet valuation. The system lists the individual results, links them to each other and determines the balance between book value and balance sheet value. The list acts as a reference for the accountant, to the postings which are performed manually in financial accounting. It is also the document the external auditor refers to.

The physical inventory prices are updated by the following procedures in the SAP System:

• Lowest value determination based on market prices
• Lowest value determination based on range of coverage
• Lowest value determination based on movement rate
• Loss-free valuation
• Inventory costing
• LIFO valuation for individual materials
• LIFO valuation for pools
• FIFO valuation

physical inventory status

The status of a physical inventory process for a material.

The following statuses are possible:

• Still to be carried out: No physical inventory document has been created.
• Still to be completed (active): An active physical inventory document exists. No inventory adjustment postings have been made to correct any differences revealed.
• Carried out: The physical inventory has been completed and adjustment postings have been made.
• Reactivated: A new physical inventory document has been created after the completion of a physical inventory.

pick/pack time

The time needed to assign goods to a delivery and to pick and pack them.

The pick/pack time depends on the shipping point, the route and the weight group of the sales order item.

picked items location

A location in the loading area where the picked goods are staged for packing and loading.

pipeline material

Something that flows directly into the production process from a pipeline, a pipe, power transmission lines, or similar (such as oil, tap water, or electricity).

Pipeline materials are not planned because they are constantly available.

The price of a pipeline material is recorded in a pipeline info record for the relevant vendor.

A pipeline withdrawal has the following effects:

• Stock levels are not changed.
• Consumption is updated.
• A pipeline liability towards the vendor is incurred that must be accounted for and settled on a periodic basis.

place into a customs status

An action taken during the import or export into or out of a customs territory.

Goods are placed into a customs status according to relevant laws in the corresponding countries. This includes transferring goods into a duty free zone, re-exportation, and destruction of goods.

plan activity quantity

The planned quantity of a cost center activity required to meet the demand, measured in the corresponding physical or technical unit.

plan cost splitting

The distribution of the planned costs of a cost center that are independent of the activity to the activity types of that cost center.

plan credit

The Value with which an object is planned to be credited.

In Cost Object Controlling, the plan credit is the value at which an order is anticipated to be credited as calculated in the preliminary cost estimate for the order.

The SAP System calculates the planned credit by multiplying the planned order quantity by the value to be used for credits, as specified by the price control.

plan debit

The value that is planned to debit an object.

In Cost Object Controlling, plan debits can be determined for all cost objects. The plan debit is determined during preliminary costing for the cost object.

The SAP System determines the plan debit by valuating planned quantities such as planned material input quantities, planned activity quantities, planned process quantities, and so on.

plan reconciliation

A tool used to check and reconcile the exchange of activities between cost centers.

This is necessary to ensure that the receiver cost centers do not use more activities than were planned at the sender cost centers.

plan simulation

A tool used to raise or lower output (plan activity) from cost centers to determine the effects of changes on costs.

plan structure

A hierarchical representation of possible combinations of characteristics and characteristic values (called plan structure nodes).

The plan structure enables you to define the profitability segments on which you can enter planned values.

plan task

The combination of a planning layout and default parameters in a planner profile.

plan version

A tool that enables different data to be run in parallel for the same object.

The following characteristics could be utilized:

• The type of acceptance used as a basis (optimistic or pessimistic)
• The time when it was created (original network or forecast)
• The plan's liability

plan version

A collection of functions for cost center planning, including:

• Writing of line items (plan)
• Generating a beginning inventory
• Copying or referencing plan data from a version

When you plan in multiple versions, the plan version keeps the plan data for the different versions separate within the SAP System, enabling you to compare different plan data within the report.

The SAP System generates plan version 000 as standard when you create a controlling area in Customizing for Cost Center Accounting.

This is the only version in which you can post the actual values generated during the entry of primary costs and internal activity allocation.

planned consumption

The difference between total consumption and unplanned consumption.

Planned consumption is updated if goods are withdrawn from stock based on a reservation.

Unplanned consumption is updated if goods are withdrawn without a reservation.

planned cost of goods manufactured

The sum of the material costs and production costs of a material, calculated in a material cost estimate.

planned costs

The costs anticipated for a particular undertaking (such as an order).

planned input quantity

The quantity of materials and activities that were expected to be used, depending on the target cost version and based on the planned order quantity or on the costing lot size in the standard cost estimate for the material.

planned item

The estimated incoming and outgoing payments

Planned items are relevant for the short-term cash forecast.

planned lot size

The lot size used to calculate the costs that vary with the lot size in target cost calculation.

Depending on the target cost version, this lot size equals the planned order quantity or the costing lot size of the standard cost estimate for the material.

planned order quantity

The quantity of material to be produced that is planned with a specific order.

planned price iteration

A method of computing the internal fixed and variable prices for activities on cost centers.

This process takes the internal exchange of activities into account.

planned price release

In material price determination, you can transfer a planned price (for example, a price from a standard cost estimate) into the material master record automatically as the standard price.

planned profit

The difference between planned revenue and planned cost.

planned receipt

A quantity whose receipt is planned by a reservation.

From the Materials Planning viewpoint, a planned receipt is available.

For Inventory Management, this quantity is not available for unrestricted use.

planned results analysis

A results analysis on planned data.

planned revenue

The planned revenue is the revenue that is expected to be received.

In Cost Object Controlling, the planned revenue can be updated on sales order items and on internal orders with revenue. This enables the SAP System to calculate results analysis data.

planned scrap quantity

The scrap quantity planned for an operation in a routing.

planned withdrawal

The issue of a material with reference to a reservation.

A planned withdrawal is performed based on a reservation list and, results in updating the total consumption (usage) statistics for the material.

planner profile

A hierarchical structured summary of planning layouts.

In each planner profile, you specify the plan tasks that are to be used for each totals table when completing planning.

planner profile

A hierarchical structure containing planning layouts differentiated according to planning area.

Each planning area uses one or more defined planning layouts.

planning document

A line item for documenting changes in planning.

planning element

An element of a work breakdown structure for which costs can be planned.

planning group

The customers and vendors in cash management and forecast are assigned to a planning group that reflects certain characteristics, risks or the type of business relationship in question, for example:

• Customer - Bank collection
• Customer - Crisis area
• Vendor: - Member of a consolidation group

This arrangement enables you to break down the display of the cash forecast according to the reliability of your forecasts regarding the outflow or inflow of cash.

planning key

A key that you can use to split planning values in cost planning for cost accounting projects:

• Internal activity <-> External activity
• Investment <-> Business expenses

planning layout

A form that defines the structure of a planning screen. It consists of the following:

• Header area -

The header area is defined through the general selections. It specifies the objects to be planned, the planning period and the version.

• Lead column(s) -

The lead columns contain objects that are to be planned.

• Value columns -

The value columns contain the key figures to be planned (that is, the plan values).

planning layout

A form that defines:

• How planning is to be executed based on the characteristics and key figures of a totals table
• The screen layout when executing planning

planning level

A source of planning data.

The planning level reflects typical financial transactions, for example:

• FI posting to a bank account
• FI posting to a clearing account
• Confirmed or unconfirmed payment notes

This makes the display of the cash position and of the cash forecast clearer: the planning level explains the origin of the data and thus enables you to better estimate its reliability.

planning period

An indicator of the period for which a cost estimate is valid.

planning profile

A tool that groups the control parameters for the planning and budgeting functions.

planning template

A template used to calculate primary costs and statistical key figures on cost centers by means of formulas.

planning tool

A tool that enables you to edit a plan task and perform planning in one step.

planning variance

A variance that arises in the planning stage.

The planning variance can be calculated by comparing the target costs calculated in the standard cost estimate for the material to the planned costs for a manufacturing order.

This comparison is made on the basis of the planned order quantity.

You analyze planning variances for such purposes as optimizing the quantity structure or the lot size of an order.

plant and equipment

An asset type in fixed assets.

Plant and equipment are used in productive operational output and are consequently subjected to wear and tear.

This wear and tear is reflected in bookkeeping by the calculation of depreciation.

plant-specific purchasing organization

An organization responsible for purchasing activities for a plant.

plausibility check

A checking procedure enabling you to estimate both the time and effort involved in the counting process for a sample-based physical inventory and the likelihood of a successful outcome prior to the count.

If the results of the plausibility check are unsatisfactory, you can perform a new random selection to optimize the counting process.

POC method

A method of results analysis that valuates the revenue of an order in proportion to the Percentage of Completion (POC).

The calculated revenue for a long-term order is calculated by multiplying the planned revenue by the actual costs divided by the planned costs (the POC).

The calculated revenue is then compared to the actual revenue:

• If the actual revenue is less than the calculated revenue, inventory from which revenue can be generated is created.
• If the actual revenue is greater than the calculated revenue, a revenue surplus is created.

pool

A group of materials formed for the purpose of LIFO valuation. (LIFO stands for "last in, first out".)

pool layer

A stock layer for a pool.

pool markdown

An absolute amount by which the value of pool layers is reduced within the framework of the "lowest value comparison" procedure for material valuation.

pool merging

The combining of several pools to form a single larger pool.

pooling-of-interest method

The pooling of interest is a consolidation method that is used when the parent's influence in the subsidiary is even greater than that in the purchase method of consolidation.

For example, the German commercial code HGB requires this method when the investment share lies between 90% and 100% and the purchase was made by exchanging stock.

The pooling-of-interest method does not deviate from the purchase method when it is employed for the elimination of intercompany payables and receivables, revenue and expense, and profit and loss.

The consolidation of investments considers only common stock as being relevant to consolidation.

The differential that is incurred during the elimination of the investment is always cleared against the retained earnings appropriations without affecting earnings.

In the Consolidation system, the pooling-of-interest method is implemented by setting special parameters in the purchase method.

POR procedure

A payment order procedure used by the Swiss Postal Service for companies located in Switzerland.

Users of this procedure are assigned a POR subscriber number in their vendor master record.

post depreciation

The posting of depreciation amounts to the correct balance sheet accounts and profit and loss accounts in Financial Accounting.

Depreciation is determined in the SAP System by depreciation keys, or is entered manually. Posting takes place on a periodic basis. Posting of depreciation to Financial Accounting is initiated by starting the depreciation posting run. This program creates a batch input session containing all posting information required by Financial Accounting. When the batch input session is processed, the posting documents are created.

post office bank current account indicator

An indicator for current accounts at post office branches.

The indicator enables the validation of the account number.

post to a prior period

A procedure during posting in which you enter a date from a prior period as the posting date when you record a transaction.

During posting, data from the current and the prior period is updated.

post-capitalization

A correction of the value of an asset, which was either set too low because a capitalization was not performed in the past, or which was treated entirely as expense.

postdated check

A check that contains a maturity date in the future.

Unlike bills of exchange or promissory notes, postdated checks cannot be endorsed. Typically, companies keep them until the maturity date.

posting block

An indicator that can be used to prevent (block) postings to an account.

An account can be blocked centrally for all company codes, or locally for one company code.

posting gross

A posting method used for entering invoices containing cash discounts.

The cash discount amount is taken into account when the invoice is paid and posted as a cash discount amount not affecting net income.

posting key

A two-digit numeric key that determines the way line items are posted.

This key determines several factors including the:

• Account type
• Type of posting (debit or credit)
• Layout of entry screens

posting net

A posting method used when entering an incoming invoice subject to cash discount.

The cash discount amount is taken into consideration when the invoice is posted, thus reducing both costs and the material stock value.

posting period

A period within a fiscal year for which transaction figures are updated.

Every transaction that is posted is assigned to a particular posting period. The transaction figures are then updated for this period.

posting rule

A rule that determines which results analysis data (such as work in process) is transferred to a specific G/L account when the data is settled to Financial Accounting.

posting string

The definition of a posting rule that always has the same account assignment characteristics for a certain business transaction.

The posting string is required for automatic account determination.

posting to a prior period

A posting to a previous period

posting variant

A system object whose purpose it is to ensure that you revaluate your assets at the correct intervals.

You define the posting variant in Customizing; when you run the Asset Revaluation (Inflation) program, the system will only allow you to execute an update run for the dates that you have specified in the posting variant.

Example

Assume you have to revaluate your assets at the end of every month. In that case, you would use a posting variant with the dates 31 January, 28 February, 31 March, and so on.

postponed accounting system

A special procedure that is used in Belgium, the Netherlands and Luxembourg.

Accounting transactions between business partners from these countries are exempt from tax. Tax postings must still be made, however, and the relevant transactions reported to the tax office.

Under this procedure, the vendor posts a certain percentage of the invoiced amount both as output tax and input tax.

preauthorization

A "soft" authorization process performed to ensure that card data is correct.

The system sends a preauthorization to the clearing house which then verifies the name, address and card number.

In the SAP system, if the material availability date or billing date is outside the authorization horizon, only preauthorization is possible. Preauthorization attempts are repeated until successful, or until the authorization horizon comes into effect.

In CRM Online, if the delivery date is outside the authorization horizon, only preauthorization is possible.

predefined column

A category of library information, consisting of a key figure and one or more characteristics.

Predefined columns are used to define standard columns that are used regularly in reports.

Example

• Actual costs in the current fiscal year
• Planned costs in the previous fiscal year

predistribution of fixed costs

The assignment of set plan values as actual values for activity types on the cost centers or business processes that planned the activity input.

The distribution is proportional to the planned quantities for activity inputs.

Predistribution of fixed costs ensures the following:

• That integrated activity planning takes the preparation activities of sender cost centers and business processes into account. This is necessary because their input was planned by other cost centers or business processes.
• That the senders (cost centers or business processes) providing the activities are not treated as the sources of preparation costs; rather, the receivers that plan activity inputs from the senders originate these costs.

preference determination

A verification of the proof of origin for goods produced in-house.

In the SAP Foreign Trade/Customs application, this is a two-step process:

• The first step determines whether a commodity is authorized for preference handling.
• The second step calculates the preference price.

If a commodity does not qualify for preference handling, the calculation step is not performed.

preference law

A regulation on to the reduction of customs duties for importing or exporting goods.

preferential customs duty rate

A reduced customs tax rate on the importation or exportation of merchandise.

preferential treatment

A reduction of duties levied on imported goods from friendly or neighboring countries.

preliminary costing

A process that determines the planned costs for objects such as orders.

preliminary order cost estimate

A cost estimate for an order based on the quantity structure of the order.

Preliminary order cost estimates can be used to calculate planning variances and production variances.

preliminary purchase order

A purchase order created from within a network and assigned to a project or sales order independently of the bill of material.

The preliminary order is sent to Purchasing in the form of a purchase requisition.

preparation for consolidation

A preparation of individual financial statement data, ensuring that it can be passed on to the Consolidation system in a form in which it can be processed.

These preparations are a prerequisite for the automatic transfer of data from the SAP applications Financial Accounting (FI), Profit Center Accounting (PCA), Materials Management (MM) and Sales and Distribution (SD) into the Consolidation system.

These systems, in which data is initially entered prior to consolidation, have the capability of managing the necessary additional account assignments in their documents and passing them on to the Consolidation system when data is transferred.

The following are examples of additional account assignments:

• Transaction type
• Trading partner
• Currency
• Acquisition year

Some of the functions involved in preparations for consolidation can also be used independently of the SAP Consolidation system to reconcile payables and receivables, or revenue and expenditure, between subsidiaries and send data to the parent company's Consolidation system.

presentation date

The date of notification to customs authorities.

previous standard cost estimate

The material cost estimate that established the standard price before the standard price was changed.

price

The internal price of an activity type for allocation between cost centers and business processes.

price calculation

The method used to calculate the prices of planned activities iteratively for combinations of cost center and activity type or for business processes, taking all activities performed for other cost centers or business processes into account.

This can be done for both planned and actual data.

price change document

A G/L account document recording a change in the valuation price of a material.

price comparison list

A comparative listing of bidders' prices for all items that are the subject of a bid invitation, in matrix form.

The price comparison list can be generated for bidders' service specifications and for quotations submitted in response to RFQs.

price control

An indicator determining the procedure used for material valuation.

The following procedures are available in the standard system:

• Valuation at standard price
• Valuation at moving average price or, if the material ledger has been activated, periodic unit price

price difference

A value that cannot be assigned to the material value at the time of posting.

In the standard price procedure, each price variance is posted as a price difference.

In the moving average price procedure, a price variance is posted as a price difference if there is no stock coverage for the quantity to which the posting relates.

price difference

The difference between the valuation price of a material and the price used for a movement with an external amount.

If the material ledger is active, price differences are collected in price difference accounts regardless of the setting of the price control indicator in the material's master record. If the price control indicator for the material is set to V, these price differences are reposted to the corresponding material inventory accounts during material price determination (if stock coverage is sufficient). These postings are proportional to the quantity on which the price differences are based.

price difference account

An account that records price differences for materials managed under standard prices, or differences between purchase order and billing prices.

price group

The grouping of customers for the purpose of pricing.

For example, price groups can differentiate between wholesale customers and retail customers.

price history

A series of prices charged or quoted by a vendor for a material or service over a certain period up to the present.

These prices can be derived from vendor quotations or from purchase orders issued to the vendor.

In vendor evaluation, a subcriterion of the main criterion "price."

price level

In vendor evaluation, a subcriterion of the main criterion "price".

This subcriterion expresses the relationship of a vendor's price to the average price of other vendors.

price quantity unit

An alternative quantity unit that can be used in funds reservations.

With the price quantity unit, you can reference the price to a quantity unit that differs from the quantity unit for the quantity to be reserved.

Example

Reserved: 100 tons at USD 24.20 per 10 kg

The quantity unit is ton; the price quantity unit is kilogram.

price strategy

A tool that determines how materials, production activities, and external activities are valuated for a given costing type.

price table

A table that uses field combinations to define the structure of condition records.

A price table is a special form of condition table used in resource planning.

price type

A key that identifies a price in the BW. The following price types are used:

• Standard price
• Moving price (moving average price or periodic unit price)
• Commercial prices
• Tax prices

price unit

The unit to which the valuation price in the material master record relates.

Price Update

A function that updates the cost calculated in a material cost estimate to the material's master record.

price/quantity scale

A scale indicating which price applies to which quantity purchased.

pricing condition

A data element used to define prices according to criteria selected by the user.

pricing element

Prices, discounts, surcharges, freight, taxes

pricing procedure

A rule type for pricing.

The pricing procedure defines the conditions permitted for a document and the sequence in which the system takes these conditions into account during pricing.

A standard pricing procedure is defined in the standard SAP system. It contains conditions most commonly used. These include material prices, discounts, and surcharges, such as freight, or tax.

pricing reference material

A material master record that the system uses as a reference for pricing.

If this pricing reference is entered in the master record for a material, all conditions defined for the pricing reference material apply to this material. A material master record must be created for each pricing reference material.

pricing scale

A scale in a condition record where prices, discounts, or surcharges are defined for different customer order quantities or values.

This scale is used by the system to determine the price, discount, or surcharge for a given quantity or value.

pricing type

An indicator that controls whether pricing must be performed again when copying a document or whether the process msut be transferred unchanged.

primary cost center

A cost center that allocates its costs to other cost centers but does not receive costs allocated from other cost centers.

primary cost component split

A structure that groups the costs of an activity type, a process or a material into cost components.

In Overhead Cost Controlling (CO-OM), the primary cost component split provides information on the makeup of the price for an activity type.

In Product Cost Controlling (CO-PC), the primary cost component split (Release 4.0) is an alternative way of grouping the cost of goods manufactured that shows the primary costs for internal activities.

primary cost element

A cost element whose costs originate outside of CO and accrual costs that are used only for controlling purposes.

primary costs

The costs incurred through the consumption of goods and services that originate from outside the company (that is, from the procurement market).

Primary Orbian Credit

A financial obligation that can be issued by an Orbian Member against a line of credit.

A Primary Orbian Credit, issued in a particular currency with a specified amount and a precise maturity date, is used by a company to finance the payment of Orbian Credits. To be eligible for a line of credit a business must be an Orbian Member and have an Orbian Sponsor.

Example

Orbian Member A sends Orbian an electronic payment instruction in order to pay an invoice with Orbian Member B. Orbian accepts the transaction and issues a Primary Orbian Credit for Member A. At the same time, Orbian issues an Orbian Credit, which is credited to Member B.

printing of dunning notice

An event that triggers the defined dunning activities.

The print of the dunning notice is preceeded by the dunning run.

When the dunning notice is printed, dunning charges and interest could be charged, depending on the settings in Customizing.

The dunning activities may include:

• Credit memos
• Clerical notes
• The start of a workflow

printout of changes

A revised output version of an already printed or transmitted purchasing document, created due to changes made to the document.

The "printout of changes" (also referred to as a "change notice") contains the changed data and may also contain predefined change texts.

You can define the data that triggers a printout of changes and the change texts to be included in Customizing for Purchasing.

prior vendor

A vendor (external supplier) who is one step back in the supply chain from the source from which a material is procured.

The "prior vendor" is frequently the manufacturer of the the material.

private trading exchange

An e-Commerce system that is set up and owned by one company for it's own use and restricted to that company's trading partners.

pro forma invoice

A quotation of cost to the buyer.

The pro forma invoice includes:

• Quantity and description of the product
• Price
• Terms of sale (Incoterms)
• Terms of payment
• Length of time the export price is valid
• Expiration date for the letter of credit
• Length of time needed for shipping

pro rata temporis

A period control provided in the SAP System.

Using this method, asset values during the course of the fiscal year are calculated proportionally using the first day of the period as the starting date.

For acquisitions, the SAP System sets the start date for depreciation (asset value date) to the beginning of the period of the acquisition month.

For retirements in the first half of a period, the full depreciation is calculated for the retirement month. For retirements in the second half of the period, no depreciation is calculated.

probable degree of confidence

The degree of probability with which the result of an extrapolation can be considered reliable.

In combination with the relative statistical error, the probable degree of confidence is a criterion for assessing the success of a sample-based physical inventory.

When a sample-based physical inventory is set up, a probable degree of confidence and a relative statistical error are specified. Provided that certain other criteria are also satisfied, a sample-based physical inventory is deemed successful if it can be claimed - with the probable degree of confidence specified - that the difference between the estimated value and the actual (unknown) value is less than the relative statistical error defined.

process category

The process categories differentiate between the different types of procurement or consumption of materials.

For example, the process categories "production" and "purchase order" represent two different methods of procuring a material. Since different methods of procurement or consumption are handled by the SAP System in different ways, the system updates different types of data. On the basis of this data, characteristics can be derived and used to create procurement processes, procurement alternatives, and consumption alternatives. For example, the following characteristics can be updated for a production process:

• Plant
• Material
• Production plant
• Planning plant
• Production version

The following characteristics can be determined for the procurement process "purchase order":

• Plant
• Material
• Purchasing organization or vendor

You can specify which of these characteristics is used to create procurement alternative or processes in the Controlling level.

process cost allocation

The system of apportioning process costs to objects (such as cost objects).

process costs

The costs incurred for business processes.

Calculated by multiplying the price of a business process by the quantity performed.

process driver

A measure for the usage of business processes by receiver objects.

process template

A tool used to allocate business process and activity quantities on a cause-and-effect basis.

Process templates enable you to use other processes, cost objects, or profitability segments as a basis to calculate the quantity used in a process. For structured processes, you can use the process template to assign activity quantities from cost centers.

process type

A system object that tells the Generic Withholding Tax Reporting program which purpose you are using it for.

It instructs the program to perform particular functions, by telling the program to apply a particular implementation of the Business Add-Ins (BAdIs) used. The process types are delivered by SAP, and you cannot customize them. For most purposes, you can use the standard process type provided by SAP, which does not perform any particular actions.

Example

The standard R/3 System comes with process types that you only use to create withholding tax certificates in the United Kingdom. It makes sure that on the selection screen, you specify that the withholding tax certificate number starts with an N or T, as all of the preprinted certificates are numbered starting with either of these letters. It can also instruct the program to process the selected data according to specific rules before outputting it.

processing

The measures necessary for clearing merchandise through customs.

In particular "customs processing".

processing category

The grouping of objects processed in a processing step into categories, such as:

• Objects for which a processing step was performed (such as settlement)
• Objects for which no changes occurred
• Objects with errors

processing group

A collection of orders within a controlling area that are settled together.

Processing groups can be defined in accordance with various points of view, such as:

• Date (monthly, weekly, etc.)
• Task area (repair, maintenance, etc.)
• Settlement receiver (cost center, G/L account)

procurement alternative

A procurement alternative represents one of a number of different ways of procuring a specific material.

You can control the level of detail in which the procurement alternatives are represented through the controlling level. Depending on the processing category, there are single-level and multilevel procurement alternatives. For example, "purchase order" is single-level procurement and "production" is multilevel procurement.

procurement card

A payment card issued on behalf of a company to employees for purchasing items up to a given amount.

Procurement cards may only be accepted by certain merchants and often require additional information for authorization and settlement, such as a budget number or material text. Settlement is made after goods issue.

procurement lead time

A period of time between the issue of the purchase order and the availability of the ordered materials in the warehouse or stores.

procurement process

A process in Product Cost Controlling that calculates and displays the costs incurred in the process of procuring materials.

A procurement process identifies such a process for one or more materials. A process can produce multiple materials simultaneously (such as when co-products are involved), while a procurement alternative represents the procurement of a single material. Depending on the process category, the procurement process can be single-level or multilevel. For example, "purchase order" is single-level, while "production" is multilevel. The level of detail of a procurement process can be determined through the choice of controlling level.

procurement type

A classification determining whether a material is produced internally, externally, or both.

procurement via broker

A form of procurement in which Purchasing agrees conditions directly with the manufacturer but the material is supplied by other vendors called "brokers."

product

A product to be costed that corresponds to the top level of an assembly in manufacturing.

product allocation determination procedure

A procedure to determine how a product that is only available in restricted quantities is distributed to the customer.

product allocation quantity

The quantity of a period available for product allocation.

The incoming orders quantity reduces the product allocation quantity.

product allocation step

The steps in which product allocation is performed.

Different characteristic combinations can be checked against different product allocations.

product configuration

A compilation of a product variant from many variants.

Values are assigned to the identifying characteristics of the underlying standard product.

In sales documents, the configuration of standard products is performed using a configuration editor.

Product Cost by Order

A component that costs products by order.

The cost object can be a production order or a process order.

Typically, the costs of production orders are analyzed by period.

Product Cost by Order or Period

A form of Cost Object Controlling that involves lot-based and periodic cost management at the level of orders and materials.

Product Cost by Period

A component that determines the cost of products by period.

The cost object can be the following:

• Production cost collector
• Cost object hierarchy and its cost object nodes, to which materials, run schedule headers, production orders, and process orders can be assigned

Product Cost by Responsibility Area

A tool for analyzing product costs in a responsibility area.

The cost of an order can be analyzed separately for the cost center at which the costs originated (the responsibility area).

Product Cost by Sales Order

A component that costs products by sales order.

The cost object is the sales document item (item in a customer inquiry, quotation, or sales order), for which planned costs and actual costs and revenues are calculated. Product Cost by Sales Order can be used in complex make-to-order environments.

product cost collector

A cost object in the Product Cost by Period component that collects the actual costs incurred in each period for the manufacture of a material.

Product cost collectors place the focus on the product as the cost object.

Product Cost Controlling

A component in Controlling that includes the following components:

• Product Cost Planning, consisting of the following subcomponents
• - Product Costing with Quantity Structure
• - Product Costing Without Quantity Structure
• - Reference and Simulation Costing
• Cost Object Controlling, consisting of the following subcomponents
• - Product Cost by Period
• - Product Cost by Order
• - Product Cost by Sales Order
• - Costs for Intangible Goods and Services
• Actual Costing/Material Ledger
• Product Cost Controlling Information System

Product Cost Planning

Component for planning the costs of products before an order to commence manufacturing is placed.

Product Cost Planning includes tools for planning costs and setting prices for materials (cost estimate with or without quantity structure) and for other objects of cost accounting (base object costing, simulation costing).

product costing

A tool for planning costs and establishing prices.

Product costing calculates the cost of goods manufactured and the cost of goods sold per product unit. Products are costed automatically using the BOMs and routings in Production Planning.

product group hierarchy

The hierarchy of CO product groups for reporting purposes.

product group type

A controller of the product group you use in the information system for Product Cost Controlling for product drilldown reports.

The following product group types are available:

• Product hierarchy of material master record
• Material group or material class of material master record
• Product group CO

product hierarchy

The structure used for interactive analysis of product costs for each level of the hierarchy. The product hierarchy consists of:

• Plant
• Product group
• Product
• Order

product proposal

A proposed list of materials from the sold-to party and sales area that is displayed at the beginning of sales document entry.

production approach

The general form of production, such as order-related production or repetitive manufacturing.

production cost collector

An object in cost accounting used in repetitive manufacturing and kanban production control.

A separate production cost collector can be created for each production version or material. The collected costs are settled to inventory at the end of the period.

Actual costs result from the following business transactions:

• Final backflush
• Reporting point backflush
• Internal activity allocation
• Revaluation of activities at actual prices
• Overhead calculation

The functions performed for production cost collectors during the period-end closing process include:

• Work in process calculation
• Variance calculation
• Settlement

production costs

The portion of the cost of goods manufactured that consists of the following costs:

• Direct cost of production (direct labor)
• Production overhead costs
• Special direct costs of production

production cycle

A manufacturing process in which the output of the final manufacturing stage becomes the input for lower stages of the same process.

Example

In paper manufacturing part of the paper produced re-enters the manufacturing process as a raw material.

production overhead

The costs incurred in production that are not, or cannot be, assigned to particular cost objects.

production process

A procurement process of the process category "production."

production variance

The variance that arises in production.

Production variances can be calculated by comparing the actual costs to the target costs calculated on the basis of the preliminary cost estimate for the order.

The target costs are calculated on the basis of the yield (actual lot size) delivered to stock.

profile

profit and loss adjustment

The process of recording to an account assignment object the revenue (gains) and expenses (losses) that accrue when a customer or vendor invoice is paid.

Cash discounts and exchange rate differences are two major forms of revenue and expenses that are recorded. Profit and Loss adjustment is performed on a specific key date.

Profit and Loss adjustment is made for the following account assignment objects:

• Business area
• Trading partner business area
• Profit center
• Trading partner profit center
• Certain CO account assignment objects
• All fields that you have added to the coding block

profit and loss adjustment

The process of recording revenue (gains) and expenses (losses) that accrue when a customer or vendor invoice is paid to an account assignment object.

Cash discounts and exchange rate differences are two major forms of revenue and expenses that are recorded. Profit and Loss readjustment is performed on a specific key date.

Profit and Loss readjustment is made for the following account assignment objects:

• Business area
• Trading partner business area
• Profit center
• Trading partner profit center
• Certain CO account assignment objects
• All fields that you have added to the coding block

profit and loss statement

A comparison of revenue and expense within a certain period.

The purpose of the profit and loss statement is the establishing of profit made by an organization and the sources thereof. It is a compulsory part of year-end closing.

profit center

An organizational unit in Accounting that reflects a management-oriented structure of the organization for the purpose of internal control.

Operating results for profit centers can be analyzed using either the cost of sales approach or the period accounting approach.

By analyzing the fixed capital as well, you can expand your profit centers for use as investment centers.

profit decrease

The value calculated in results analysis showing a profit that was realized in an earlier period but later canceled because of changes in the planning data.

Profit decreases are calculated when the Percentage of Completion method is used.

profit increase

The profit calculated to date by results analysis based on the percentage of completion and the planned profit for the object.

A profit increase is calculated when the Percentage of Completion method is used.

profit order

The order for which the planned revenue is greater than its planned costs.

Results analysis uses the profit percentage rate of a profit order to calculate the inventory from which revenue can be generated and the cost of sales.

profit percentage

The ratio of the planned revenue to the planned cost of an order.

This can either be calculated by results analysis or specified in the valuation method.

Profitability Analysis

The two forms of profitability analysis in CO-PA are:

• Costing-based profitability analysis
• Account-based profitability analysis

Profitability analysis in CO-PA is based on the cost of sales accounting method.

profitability report

A drilldown report for results analysis.

In contrast to reports based on line items, which show all characteristics of the posted line items, profitability reports show only the characteristics that were defined in the segment level characteristics.

profitability segment

An object within Profitability Analysis to which costs and revenues are assigned.

A profitability segment corresponds to a market segment. You can calculate the profitability of a profitability segment by comparing its sales revenues against its costs.

A profitability segment in an operating concern is defined by a combination of characteristic values. Characteristics can be concepts already available in the SAP System (customer, product, sales organization, and so on), or you can define your own concepts (such as "order size class").

Example

Profitability segment 1: Product "Prod-1132"/ Customer "100267"

Profitability segment 2: Industry "Chemicals"/ Country "USA"/ Product group "Laboratory instruments"

project

A complex structure of tasks within a controlling area.

It is used to control and monitor the schedule, resources, capacities, cost, revenues, and funds availability.

project stock

The quantity of a material held in stock to execute a project.

The project stock is firmly assigned to a WBS element. Components can only be withdrawn for the WBS element.

project-related service specifications

A listing and description of services to be performed or work to be done in connection with a certain project for the purposes of of bid invitation and contract award.

promotion

An agreement for a product or product group.

A promotion has a limited time period and can include different sales deals.

proof of export

A document that proves that a product has been exported.

property indicator

A field in the asset master record for classifying for the valuation of net assets.

proportion of equity method

A variant of the equity method of consolidation.

It differs from the book value variant for this method of consolidation in that the differential between the investment cost and the pro rata stockholders' equity of the affiliated company is reported as a separate item in the balance sheet.

The differential is reported separately as goodwill and the value of the investment item is reduced by this amount.

proportional consolidation

A consolidation method.

It is applied when dealing with investments in joint venture companies.

The individual financial statement data (reported financial data) of the proportionally consolidated company is transferred to the consolidated financial statements of the parent only to the extent of that company's percentage of investment.

proportional value adjustment

The value adjustments that are calculated for part of an asset, up to the time of its retirement.

Example

• Ordinary depreciation
• Revaluation
• Investment support

provisional inflation index

An inflation index published by a statistical office or other government agency that indicates the estimated rate of inflation for a specific period pending the publication of the final figures.

The final rate of inflation is published in a definitive inflation index.

Not all countries publish provisional indexes. In many countries, definitive indexes only are published.

provisional run

An update run in which a G/L account, an asset, or a material is adjusted for inflation using a provisional inflation index.

purchase method

The purchase method is one of the consolidation methods.

The purchase method is used when the parent company of a subgroup has a dominating influence over a specific internal trading partner (subsidiary).

This degree of influence exists when both companies share the same board members or if the parent's investment in the subsidiary exceeds 50%.

purchase order

A request or instruction from a purchasing organization to a vendor (external supplier) or a plant to deliver a quantity of material or to perform services at a certain point in time.

purchase order history

Details of deliveries effected or invoices received in respect of a purchase order item.

purchase order on hold

A aulty or incomplete purchase order, stored in the SAP System using the "Hold" function.

Purchase orders that are "on hold" ("held" POs) can be processed or completed at a later time.

They are not transmitted to vendors. However, POs that are on hold are relevant to MRP.

The following functions are not possible:

• Message output (printing or transmission of document in message form)
• Release
• Posting a goods receipt
• Posting an invoice

purchase order price quantity

Goods receipt quantity in the purchase order price unit.

If a purchase order price unit that differs from the purchase order unit has been defined in the purchase order (for example, PO quantity in pc, PO price in kg), both the quantity in the purchase order unit and the purchase order price quantity must be specified at the time of goods receipt.

purchase order price quantity variance

In an invoice, the variance between the invoiced quantity in the purchase order price unit and the goods receipt quantity posted, although the invoiced quantity in the order unit is the same as the GR quantity posted.

Example

The elements of the purchase order are as follows:

• Purchase order unit: Box
• Purchase order price unit: kg
• Conversion factor: 1 box = 20 kg
• Price: $5 per kg

You order and receive 5 boxes, each weighing 20 kg. Goods receipt value is 5 x 20 kg x $5 per kg = $500.

An invoice arrives for 5 boxes @ 21 kg. Invoice value is 5 x 21 kg x $5 for each kg = $525.

Resulting PO price quantity variance: 5 %.

purchase order price unit

An alternative unit of measure that can be used for ordering purposes.

The purchase order price unit enables you to express the purchase order price in a unit that differs from the order unit.

Example

Ordered: 100 m2; Price: $24.20 for 10 kg.

The order unit is m2. The purchase order price unit is kg.

purchase requisition

A request or instruction to Purchasing to procure a quantity of a material or service so that it is available at a certain point in time.

purchasing document

An instrument used by the purchasing department to procure materials or services.

The standard SAP system includes the following external purchasing documents:

• Request for quotation (RFQ)
• Purchase order (PO)
• Contract
• Scheduling agreement

In the SAP system, the term "purchasing document" is restricted to external documents (that is, documents other than purchase requisitions).

You can use a purchase requisition (an internal document) to notify Purchasing of your requirements of materials and services.

purchasing document category

An identifier for classifying purchasing documents.

Purchasing document categories include:

• Requests for quotation (RFQs)
• Purchase requisitions
• Purchase orders (POs)
• Contracts
• Scheduling agreements

Purchasing document categories can be further subdivided into purchasing document types.

purchasing document delivery schedule

A timescale for the successive delivery of parts of the total quantity of a material included as an item of a purchasing document (such as a purchase requisition, purchase order, or scheduling agreement).

purchasing document type

An identifier allowing differentiation between the various forms of a document category.

Among other things, it determines the relevant number range and the fields that are available for input.

purchasing group

A key for a buyer or group of buyers responsible for certain purchasing activities.

The purchasing group is:

• Internally responsible for the procurement of a material or a class of materials
• The principal channel for a company's dealings with its vendors

purchasing info record

A source of information for the procurement of a certain material from a certain vendor.

purchasing organization

An organizational unit in Logistics, subdividing an enterprise according to the requirements of Purchasing.

A purchasing organization procures materials and services, negotiates conditions of purchase with vendors, and is responsible for such transactions.

You specify the form of procurement by assigning purchasing organizations to company codes and plants.

Possible forms are:

• Enterprise-wide: One purchasing organization procures for all the company codes of a client - that is, for all companies belonging to a corporate group

• Company-specific: One purchasing organization procures for one company code

• Plant-specific: One purchasing organization procures for one plant

Mixed forms are possible. These are replicated in the system using reference purchasing organizations.

A purchasing organization can access and use the most favorable conditions and centrally agreed contracts of the reference purchasing organization assigned to it.

purchasing statistics

Information on the volume of business with a vendor, order values, and delivery data with regard to a material supplied or a service performed over a period.

purchasing value key

A key defining the valid reminder days and tolerance limits applicable to this material for the purchasing department.

The purchasing value key serves as a data entry aid.