What is source inspection?

What is source inspection and what are the setup required to do in system to implement successfully?

A source inspection is a quality inspection in which Buyer required the quality check before the material received. So that he performed the quality inspection at the vendor’s Location.

To setup source inspection, you should define inspection type (01 and 0101) in material master QM View. (MM01)

When requesting source inspection, include the following information:

a) Purchase order number
b) Item number
c) Part number
d) Quantity of parts to be inspected
e) Date source inspection is required
f) Types of inspection required
- In Process
- Final
- Interim
- First Article Inspection (FAI)
g) Contact name and phone number

Go to transaction QI07 and give the material code, vendor, plant and opening period. When you execute the transaction you would find open purchase orders for the given input data. Select the Purchase Order you wish to perform Source Inspection and choose Create Inspection Lot. These inspection lot triggers for inspection type 0101. Against this inspection Lot perform result recording QE01 & QA11.

When finally you received Goods at your premises, then inspection lot will triggered automatically (01) and perform result recording QE01 & QA11

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PROCEDURE USED FOR SOURCE INSPECTION IN QM

What's the process for source inspection?

The Q-Info Record is used to trigger a source inspection lot for a material or vendor and plant. Under the tab key Inspection Controls in Record of Q-Info, you would find vendor source Inspection and under that select the inspection type desired for source inspection (say 01,0101) and give the lead time required to perform the inspection in days (say 10 days).

If you do not want to trigger an inspection more @ GR for a source Inspection lot then check the box (Source Insp. No Gr).

Ensure that the inspection type selected at source inspection is activated in the Material Master Record for the chosen material in the Quality Management View.

To trigger the lot manually you need to have some open purchase orders for the material/plant/vendor. Go to transaction QI07 and give the material code, vendor, plant and opening period.

When you execute the transaction you would find open purchase orders for the given input data. Select the Purchase Order you wish to perform Source Inspection and choose Create Inspection Lot.

This would trigger the lot and then it is QE01 & QA11

We have an in-process inspection set in the PP routing. We have three MIC's attached that take varying amounts of completion time. SAP will also allow confirmation of that step when only one of the MIC's has been entered. We need the system to NOT allow confirmation (in CO11N) until the UD is made.

The following steps also can be done if more than one operation is there in routing.

1. The operation which requires inspection completion need to be given with the control key having milestone for confirmation.
2. In SPRO-Producion-shop floor control-Operation- Define confirmation parameters, select the order type that will be used for production.
3. In detail screen, In check area - for Results Rec.QM field,change to error message if no inspection results exists.
4. The system will check, if any result recording has been carried out for that operation.
5. The drawback will be, if one MIC is recorderd and others left without value, still the system will allow to confirm the production order.

The above holds good only if there are more than 1 operation. if one operation is there in the routing, directly we can activate the "04 inspection type" for the material and move to quality stock during final confirmation.

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SOURCE INSPECTION IN QM

Can any one guide how to do Source Inspection in QM. What are the settings required to be done and can the lot for source inspection be trigerred manually or automatically.

The Q-Info Record is used to trigger a source inspection lot for a material/vendor and plant. Under the tab key Inspection Control in Q-Info Record, you would find vendor source Inspection and under that select the inspection type desired for source inspection (say 01,0101) and give the lead time required to perform the inspection in days (say 10 days). If you do not want to trigger an inspection lot @ GR for a source Inspection lot then check the box (Source Insp. No Gr).

Ensure that the inspection type selected @ source inspection is activated in the Material Master Record for the chosen material in the Quality Management View.

To trigger the lot manually you need to have some open purchase orders for the material/plant/vendor. Go to transaction QI07 and give the material code,vendor,plant and opening period. When you execute the transaction you would find open purchase orders for the given input data. Select the Purchase Order you wish to perform S.I and choose Create Inspection Lot.

This would trigger the lot and then it is QE01 & QA11.

Two more questions ..

1. Purchase order for this material (which has to undergo source inspection) will show open order qty until GR is
posted for this material.Inspection lot created thru QI07 is not stock posting relevant i.e. you can not post the
quantity to Unrestricted use stock.The procedure you have mentioned allows you to record results but in
the UD there is no Stock posting tab thru which you can post the material to Unrestricted use stock. How
will you take care regarding posting of this material to Unrestricted stock.

2. Can we have inspection type 01(GR insp for PO) & 0101 (Source Inspection) activated at the same time in the
Material master record for a material.Have you come across such a scenario.What will be the implication if
both the inspection types are activated.

1) Source Inspection(SI): Well, you need to understand the concept and use of Source Inspection. The inspection lots created using this are not stock relevant as the material is not inward thru GR at the point when these lots are triggered. Hence the UD will not have a stock posting tab and if you want a stock posting tab then it becomes normal inspection (01). Hope you understand the difference, also after results record & UD if you decide not to have a inspection lot triggered @ GR then you need to update it in the Q-Info record. The settings for this scenario are already given below.

2) Inspection type (01,0101) can be activated @ the same time.In addition to this you can have a preferred indicator set for the inspection type you want to be selected when you perform goods receipt.
This check box is available in the inspection type set up in the Material master. If you do not check the preferred inspection type then the variant 01 for lot origins 01 is given preference.

If you want an inspection type 0101 to be triggered @ SI then you need to define this in the Q-Info record.

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Set Up for Credit Card Payment Processing

Given below is the set up for credit card payment processing:

Set Up Credit Control Areas:

Define Credit Control Area
Transaction: OB45
Tables: T014
Action: Define a credit control area and its associated currency. The Update Group should be ‘00012’. This entry is required so the sales order will calculate the value to authorize

Assign Company Code to Credit Control Area
Transaction: OB38
Tables: T001
Action: Assign a default credit control area for each company code

Define Permitted Credit Control Area for a Company
Code
Transaction:
Tables: T001CM
Action: For each company code enter every credit control area that can be used

Identify Credit Price
Transaction: V/08
Tables: T683S
Action: Towards the end of the pricing procedure, after all pricing and tax determination, create a subtotal line to store the value of the price plus any sales tax. Make the following entries:
Sub to: “A”
Reqt: “2”
AltCTy: “4”

Automatic Credit Checking
Transaction: OVA8
Tables: T691F
Action: Select each combination of credit control areas, risk categories and document types for which credit checking should be bypassed. You need to mark the field “no Credit Check” with the valid number for sales documents.

Set Up Payment Guarantees

Define Forms of Payment Guarantee
Transaction: OVFD
Tables: T691K
Action: R/3 is delivered with form “02” defined for payment cards. Other than the descriptor, the only other entry should be “3” in the column labeled “PymtGuaCat”

Define Payment Guarantee Procedure
Transaction:
Tables: T691M/T691O
Action: Define a procedure and a description.
Forms of Payment Guarantee and make the following entries Sequential Number “1”
Payment Guarantee Form “02”
Routine Number “0” Routine Number can be used to validate payment card presence.

Define Customer Payment Guarantee Flag
Transaction:
Tables: T691P
Action: Define a flag to be stored in table.
Create Customer Payment Guarantee = “Payment Card Payment Cards (All Customers can use Payment Cards)”.

Define Sales Document Payment Guarantee Flag
Transaction:
Tables: T691R
Action: Define the flag that will be associated with sales document types that are relevant for payment cards

Assign Sales Document Payment Guarantee Flag
Transaction:
Tables: TVAK
Action: Assign the document flag type the sales documents types that are relevant for payment cards.

Determine Payment Guarantee Procedure
Transaction: OVFJ
Tables: T691U
Action: Combine the Customer flag and the sales document flag to derive the payment guarantee procedure

Payment Card Configuration

Define Card Types
Transaction:
Tables: TVCIN
Action: Create the different card types plus the routine that validates the card for length and prefix (etc…)
Visa , Mastercard, American Express, and Discover
Create the following entries for each payment card
AMEX American Express ZCCARD_CHECK_AMEX Month
DC Discover Card ZCCARD_CHECK_DC Month*****
MC Mastercard ZCCARD_CHECK_MC Month
VISA Visa ZCCARD_CHECK_VISA Month

The Routines can be created based on the original routines delivered by SAP.

*****SAP does not deliver a card check for Discover Card. We created our own routine.

Define Card Categories
Transaction:
Tables: TVCTY
Action: Define the card category to determine if a
payment card is a credit card or a procurement card.
Create the following two entries
Cat Description One Card Additional Data
CC Credit Cards No-check No-check
PC Procurement Cards No-check Check

Determine Card Categories
Transaction:
Tables: TVCTD
Action: For each card category map the account number range to a card category. Multiple ranges are possible for each card category or a masking technique can be used. Get the card number ranges from user community. Below is just a sample of what I am aware are the different types of cards.

Visa Credit Expires in 7 days.
400000 405500
405505 405549
405555 415927
415929 424603
424606 427532
427534 428799
428900 471699
471700 499999
Visa Procurement Expires in 7 days.
405501 405504
405550 405554
415928 415928
424604 424605
427533 427533
428800 428899
Mastercard Credit Expires in 30 days
500000 540499
540600 554999
557000 599999
Mastercard Procurement Expires in 30 days
540500 540599
555000 556999

American Express Credit Expires in 30 days
340000 349999
370000 379999

Discover Card Credit Expires in 30 days
601100 601199

Set Sales Documents to accept Payment Card Information Transaction:
Tables: TVAK
Action: Review the listing of Sales Document types and enter “03” in the column labeled “PT” for each type which can accept a payment card

Configuration for Authorization Request

Maintain Authorization Requirements
Transaction: OV9A
Tables: TFRM
Action: Define and activate the abap requirement that determines when an authorization is sent. Note that the following tables are available to be used in the abap requirement (VBAK, VBAP, VBKD, VBUK, and VBUP).

Define Checking Group
Transaction:
Tables: CCPGA
Action: Define a checking group and enter the
description. Then follow the below guidelines for the remaining fields to be filled.
AuthReq Routine 901 is set here.
PreAu If checked R/3 will request an authorization for a .01 and the authorization will be flagged as such. (Insight does not use pre-authorization check).
A horizon This is the days in the future SAP will use to determine the value to authorize
(Insight does not use auth horizon period).
Valid You will get warning message if the payment card is expiring within 30 days of order entry date.

Assign Checking Group to Sales Document
Transaction:
Tables: TVAK
Action: Assign the checking group to the sales order types relevant for payment cards

Define Authorization Validity Periods
Transaction:
Tables: TVCIN
Action: For each card type enter the authorization validity period in days.

AMEX American Express 30
DC Discover card 30
MC Master card 30
VISA Visa 7

Configuration for clearing houses

Create new General Ledger Accounts
Transaction: FS01
Tables:
Action: Two General Ledger accounts need to be created for each payment card type. One for A/R reconciliation purposes and one for credit card clearing.

Maintain Condition Types
Transaction: OV85
Tables: T685
Action: Define a condition type for account determination and assign it to access sequence “A001”

Define account determination procedure
Transaction: OV86
Tables: T683 / T683S
Action: Define procedure name and select the procedure for control. Enter the condition type defined in the previous step.

Assign account determination procedure
Transaction:
Tables:
Action: Determine which billing type we are using for payment card process.

Authorization and Settlement Control

Transaction:
Tables: TCCAA
Action: Define the general ledger accounts for reconciliation and clearing and assign the function modules for authorization and settlement along with the proper RFC destinations for each.

Enter Merchant ID’s
Transaction:
Tables: TCCM
Action: Create the merchant id’s that the company uses to process payment cards

Assign merchant id’s
Transaction:
Tables: TCCAA
Action: Enter the merchant id’s with each clearinghouse account

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Difference Between Simple and Automatic Credit Check Types

Explain in detail difference between simple and automatic credit check types. In automatic check, difference between static and dynamic checks.

SIMPLE CREDIT CHECK : Tr.Code - FD32

It Considers the Doc.Value + Open Items.

Doc.Value : Sales Order Has been saved but not delivered

Open Item : Sales Order has been saved , Delivered, Billed & Transfered to FI, but not received the payment from the customer.

Eg: Customer Credit Limit is Rs.1,00,000/-
Suppose Doc.Value + Open Item Value is Rs.1,10,000/-

Here credit limit exceeds then system reacts.

Options : A) Warning Message
B) Error Message (Sales Order won't be saved)
C) Error Message with Delivery Block

AUTOMATIC CREDIT CHECK : Give extra credit facilities to the particular customer.

STATIC CREDIT LIMIT DETERMINATION :Checking Group + Risk Catageory + Credit Control Area.

A) Credit Checking Groups : Types of Checking Groups.

01) Sales
02) Deliveries
03) Goods Issue
At all the above 3 levels orders can be blocked.

B) Risk Catageory : Based on the risk catageories company decide how much credit has to give to the customer.

HIGH RISK (0001) : LOW CREDIT
LOW RISK (0002) : MORE CREDIT
MEDIUM RISK(0003) : Average Credit

Static Credit Check it checks all these doc value & check with the credit limit

1) Open Doc.Value / Sales Order Value : Which is save but not delievered

2) Open Delivery Doc.Value : Which is delivered but not billed

3) Open Billing Doc.Value : Which is billed but not posted to FI

4) Open Item : Which is transfered to FI but not received from the customer.

DYNAMIC CREDIT CHECK : 1) Open Doc
2) Open Delivery
3) Open Billing
4) Open Items
5) Horizon Period = Eg.3Months

Here the System will not consider the above 1,2,3& 4 values for the lost 3 months

Then assign the Sales Doc & Del Documents.

Sales Doc.Type(OR) + credit Check(0) + Credit Group (01)

Credit Limit Check for Delivery Type : Del.Type (LF) + Del Credit
Group (02) + Goods Issue Credit Group (03)

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MRP block for Credit limit attained Customers

How to block the requirement (MD04) generated by the item category in a sales order when the customer has attained the credit limit? The MRP requirements still appear even though the schedule is zero.

You should try and use one of the standard requirements.

See in transaction "VOFM".

Under Requirements / Subsequent Functions / Reqs.Availablity.

Try using routine 103, you may have to tweak if it doesn't work exactly as you'd like.

For example, you can write a routine 903 because you only wanted this reaction for certain business units. Irregardless, using a routine similar to this will prevent the requirement from appearing in MD04 for orders blocked on credit.

Code:
DATA: W_ZSDCRD TYPE ZSD_CREDITBLCK.
DATA: W_CMGST LIKE VBUK-CMGST.

SELECT SINGLE * INTO W_ZSDCRD
FROM ZSD_CREDITBLCK
WHERE KKBER = VBAK-KKBER
AND CTLPC = VBAK-CTLPC.

IF SY-SUBRC = 0 AND VBUK-CMGST CA 'B'.

IMPORT VBUK-CMGST TO W_CMGST FROM MEMORY ID 'CREDIT'.

IF W_CMGST = SPACE.
MESSAGE I706(Z1).
EXPORT VBUK-CMGST TO MEMORY ID 'CREDIT'.
ENDIF.

*} REPLACE
*{ INSERT DEVK966908 1

*} INSERT
* Read the subsequent function information for the message
PERFORM FOFUN_TEXT_READ USING GL_FOFUN
CHANGING FOFUN_TEXT.
MESSAGE ID 'V1' TYPE 'E' NUMBER '849'
WITH FOFUN_TEXT
RAISING ERROR.
*{ INSERT DEVK966908 2

*} INSERT
ENDIF.
ENDFORM.

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How To Do Configuration For Credit Management

Credit and risk management takes place in the credit control area. According to your corporate requirements, you can implement credit management that is centralized, decentralized, or somewhere in between.

An organizational unit that represents the area where customer credit is awarded and monitored. This organizational unit can either be a single or several company codes, if credit control is performed across several company codes. One credit control area contains credit control information for each customer.

For example, if your credit management is centralized, you can define one credit control area for all of your company codes.

If, on the other hand, your credit policy requires decentralized credit management, you can define credit control areas for each company code or each group of company codes.

Credit limits and credit exposure are managed at both credit control area and customer level. You set up credit control areas and other data related to credit management in Customizing for Financial Accounting. The implementation guide is under Enterprise Structure -> Definition or Assignment -> Financial Accounting and then Maintain credit control area. You assign customers to specific credit control areas and specify the appropriate credit limits in the customer master record.

Settings for determining the credit control area of a document. The settings of items 1 - 4 are taken into account according to their priority. The credit control area found is stored in field VBAK-KKBER.

1. Transaction OB38
Check which credit control area is assigned to the company code.
Company code:
Credit control area:

2. Transaction OVFL
Check which credit control area is assigned to the sales area.
Sales area:
Credit control area:

3. Transaction XD02 or VD02
Check which credit control area is assigned to the payer.
Payer:
Credit control area:

4. Transaction SE37
Is user exit EXIT_SAPV45K_001 being used?

5. Transaction OBZK
For the settings under items 2 - 4, field "All company codes" must be marked in Transaction
OB45, or the credit control area must be entered under the relevant company code in table
T001CM of the credit control areas allowed.
Company code:
Credit control areas allowed:

6. Settings for the credit checks

7. Transaction OVAK
Which settings do exist for the sales document type used?
Sales document:
Check credit:
Credit group:

8. Transaction OVAD
Which settings do exist for the delivery type used?
Delivery type:
Credit group for delivery:
Credit group for goods issue:

9. Transaction OB01
Credit management/Change risk category
Definition of the risk category for each credit control area. This risk category can be
assigned to a credit account by using Transaction FD32.

10. Transaction OVA8
Here, the individual credit checks for key fields
o credit control area
o risk category
o credit group are set. Take these key fields from the above settings and go to the detail
screen. In particular, check whether fields "Reaction" and "Status/block" are set
correctly. To carry out follow-up actions in case of a credit block, the credit check
status must be set (field "Status/block").

11. Transaction FD32
Credit master data for the payer of the relevant document.
Credit account:
Credit limit:
Risk category:
Currency:

12. Settings for updating the credit values Update of the credit values is required for the limit
check (static or dynamic credit limit check).

13. Transaction OVA7
Update of the credit value is active for the corresponding item type if the check box is marked. This field corresponds to
field "Active receivable" in Transaction VOV7.
Item type:
Active receivable:

14. Transaction V/08, Pricing
In the pricing procedure used for pricing, subtotal "A" must be entered in a line for
determining the credit value (mark the pricing procedure and doubleclick on "Control").
Usually, the net value plus taxes is used. This way the system is determined to use this
subtotal for credit pricing. The credit price is stored in field VBAP-CMPRE and used for
update and credit check.
You can find the used pricing procedure of the order under "Item -> Condition -> Analysis".
Pricing procedure:
Line with subtotal = 'A':

15. Transaction OB45
Which update group (field "Update") do you use in the relevant credit control area? The
default setting is "12". If you use another update group, check whether this is fine with
you. If you open an OSS message, please tell us the alternative update group.
Credit control area:
Update:

16. Transaction OMO1
Which kind of update did you choose for structure S066?
In any case, "Synchronous update (1)" has to be chosen as the kind of update.
All other settings will lead to errors.

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