SAP Transaction OX16: A Comprehensive Guide for SAP Users

Welcome to our tutorial on SAP transaction OX16, a crucial transaction code used in SAP Materials Management (MM) module. In this tutorial, we will provide you with a step-by-step guide on how to effectively use OX16 for maintaining purchasing organizations in your SAP system. Whether you are a novice SAP user or an experienced consultant looking for a refresher, this tutorial will equip you with the necessary knowledge to navigate through OX16 seamlessly.

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Now, let’s begin our tutorial on using SAP transaction OX16.

What is SAP Transaction OX16?

SAP Transaction OX16 (Maintain Purchasing Organization) is a transaction code used in SAP MM to create and maintain purchasing organizations. A purchasing organization is responsible for procuring materials and services for an organization. With OX16, you can define and configure various attributes of purchasing organizations, such as their names, addresses, and communication details.

Step 1: Accessing SAP Transaction OX16

To start using OX16, follow these steps:

1. Log in to your SAP system using your user ID and password.
2. Launch the SAP Easy Access Menu.
3. Navigate to the “Logistics” folder and expand it.
4. Locate and click on the “Materials Management” folder.
5. From the sub-menu, select “Purchasing” and then choose “Master Data”.
6. Next, click on “Purchasing Organization” to proceed to the OX16 transaction.

Step 2: Understanding OX16 Transaction Screen

Once you have accessed OX16, you will encounter the OX16 transaction screen, which consists of various tabs and fields. Let’s explore each of them:

• General Data: This tab contains fields for entering general information about the purchasing organization, such as its name, address, and communication details.
• Control Data: Here, you can define various control parameters for the purchasing organization, such as the currency used, payment terms, and delivery tolerances.
• Account Assignment Data: This tab allows you to configure account assignment settings for the purchasing organization, such as account assignment categories and default cost centers.
• Release Procedure: In this tab, you can define release procedures for purchase orders created by the purchasing organization. Release procedures help ensure that purchase orders are approved by the appropriate authorities before being sent to suppliers.
• Partner Functions: The partner functions tab enables you to assign partner functions, such as vendors and purchasing groups, to the purchasing organization.
• Purchasing Organization Assignment: In this tab, you can assign plants to the purchasing organization. Plants are responsible for producing or procuring materials.

Step 3: Creating a Purchasing Organization with OX16

To create a new purchasing organization using OX16, follow these steps:

1. Click on the “New Entries” button to create a new entry.
2. In the General Data tab, enter the name, address, and communication details of the purchasing organization.
3. Switch to the Control Data tab and define the control parameters for the purchasing organization, such as the currency, payment terms, and delivery tolerances.
4. Move to the Account Assignment Data tab and configure the account assignment settings as per your organization’s requirements.
5. In the Release Procedure tab, define the release procedures for purchase orders created by the purchasing organization.
6. Switch to the Partner Functions tab and assign the relevant partner functions to the purchasing organization.
7. Finally, in the Purchasing Organization Assignment tab, assign the plants that are associated with the purchasing organization.
8. Once you have entered all the necessary information, click on the “Save” button to create the purchasing organization.

Congratulations! You have successfully created a purchasing organization using SAP transaction OX16.

Step 4: Editing a Purchasing Organization with OX16

If you need to make changes to an existing purchasing organization, you can do so using OX16. Follow these steps:

1. Enter the purchasing organization code and click on the “Display” button to open the existing entry.
2. Make the necessary changes to the fields in the General Data, Control Data, Account Assignment Data, Release Procedure, Partner Functions, or Purchasing Organization Assignment tabs.
3. Once you have made the required changes, click on the “Save” button to update the purchasing organization.

Conclusion

In this tutorial, we have provided you with a comprehensive guide on using SAP transaction OX16 in the SAP MM module. We covered the basics of OX16, explained how to create and edit purchasing organizations, and explored various transaction screen tabs. Remember, practice and continuous learning are essential for becoming proficient in SAP MM.

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