Quick yet detailed rendition of "Purchase Account Management " ( PAM)

PAM is a mandatory configuration in some European countries like France, Belgium, Italy, Spain & Finland. Companies registered in these countries are required by law to submit all

details about the purchasing activities. Though its a mandate in the above listed countries, PAM can be activated in other countries as well in a global landscape enterprise.

PAM is a value list of all purchases (materials + services) procured in a certain reporting period. The system uses the keys EIN ( Purchasing Account) and EKG (Purchasing Account Offsetting) to detail the values. The freight entries are made to the Purchasing Freight Account ( FRE)

The PAM entries are triggered at the time of GRN. PAM Entries at MIRO are made only if there are deviations in the Invoice from the GRN document.

PAM at Receipt Value : In case of MAP, the amount posted to the GR/ IR account is posted to the Purchasing Account EIN

PO @10 USD X 10 PCS MAP Delivery Charges 100 USD

MIGO : Stock Account 1100 USD ( Material Price + Freight)

GR/IR Account 1000 USD

Freight Account 100 USD

Purchasing Freight Account EIN 1000 USD

Purchasing Freight Clearing FRE 100 USD

Purchasing Account Offsetting EKG 1100 USD

PAM at Stock Value : In case of Standard Price, the amount posted to the Stock Account is posted to the Purchasing Account EIN

PO @10 USD X 10 PCS Delivery Charges 100 USD MAP : 9 USD

MIGO : Stock Account 900 USD ( SP + Freight)

GR/IR Account 1000 USD

Freight Account 100 USD

Price Differences 100 USD

Purchasing Freight Account EIN 900 USD

Purchasing Freight Clearing FRE 100 USD

Purchasing Account Offsetting EKG 900 USD

PAM at Stock value is applicable only in case of Standard Price materials.

Steps to Configure PAM :

1. Activate at Company Code Level

2. Configure Settings for Receipt Value / Stock Value + Delivery Costs

3. Assign GL Accounts for EIN EKG FRE in Tcode OBYC

Can we configure PAM for Malaysia, USA, UAE, Singapore Company Codes -

SAP Experts please let me know your perspectives :)

Please let us know in the comments.