Introduction to SAP R3 (MM) (1)

Preview:

Citation preview

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 1/65

Introduction SAP R/3 –  MM

Dr. Djamal Ziani

King Saud University

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 2/65

ERP-Software: SAP R/3

Client/ Server 

ABAP/4

R/3

SD

MM

PP

QA

PM

HR   IS

OC

PS

AM

CO

FI

Sales and

Distribution

MaterialManagement Controlling

Financial

 Accounting

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 3/65

Components of Materials

Management

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 4/65

Organizational Data

• A hierarchy in which the organizational units

in an enterprise are arranged according to

tasks and functions

• Are static data and are rarely changed 

• The definition of organization units is a

fundamental step, it is a critical factor in how

the company will be structured

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 5/65

Organizational Structures

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 6/65

Organizational Structures

• Client

• Company

• Plant• Valuation Area

• Storage Locations

• Purchasing Organizations• Purchasing Groups

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 7/65

Organizational Structures: Client

• The client is a unit within an SAP R/3 system

that is self-contained both in legal and

organizational terms and in terms of data,

with separate master records and an

independent set of tables.

• From a business viewpoint, the client

represents a corporate group, for example.

• Client: 3 numerical digits

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 8/65

Organizational Structures: Company &

Company code

• The company code is the smallestorganizational unit of external accounting forwhich a complete, self-contained bookkeeping

system can be replicated.• A company code represents an independent

unit producing its own balance sheet, forexample, a company within a corporate group(client).

• Company code = 4 characters

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 9/65

Organizational Structures: Plant

• Lowest valuation area

• Organizational level where Material

Requirements (MRP) runs

• Generally used to describe a production site, a

distribution center or centralized warehouse

• May be a physical or logical unit

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 10/65

10 

Organizational Structures: Valuation

Area

• The valuation area determines at which level a

material is valuated (inventory value is

established)

• SAP R/3 allows valuation at the company code

or plant level, but recommends valuation area

be set at the plant level.

• Means each plant can have its own material

prices and account determination

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 11/65

11 

Organizational Structures: Storage

Location

• Subdivision of a plant

• Where materials are managed (inventory

management)

 – Raw Materials

 – Maintenance, Repair, and Other (MRO)

 – Finished Product

• May be a physical or logical unit

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 12/65

Organizational Structures: Purchasing

Organizations 

• An organizational unit responsible for

procuring materials or services for one or

more plants and for negotiating general

conditions of purchase with vendors.

• The purchasing organization assumes legal

responsibility for all external purchase

transactions.

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 13/65

Purchasing organization

purchasing group MG 0, 3purchasing organization

purchasing group MG 1, 4

purchasing group MG 2, 5

purchasing group MG 7, 8, 9plant

purchasing group MG 6

material

group

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 14/65

Organizational Structures: Purchasing

Organization Groups 

•The purchasing organization is further

subdivided into purchasing groups (buyer

groups), which are responsible for day-to-day

buying activities.

 A purchasing group can also act for severalpurchasing organizations.

h

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 15/65

Inventory Management with a

Warehouse Management Systemclient

0001plant

storage location

001warehouse number

001storage type

05-04-03

002

05-04-04storage bin

MM

WM

company code

0001 – ABC inc.

0001 – Jones inc. 0002 – Model Ltd.

purchasing organization

0001

0001 0002 0003

0002 0003 0004 0001

0002 0003 0004

distrib.-center factory

(physical stock)

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 16/65

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 17/65

MM – interdependencies to other modules

MM

material master

purchasing

requirements plan.

inventory mgmt.

invoice verification

SDsales and

distrib.

PM

plant

maintenance

QM

quality

management

PPproductionplanning

Logistik

FI

financial acc.

CO

controlling

AM

fixed assets mgmt.

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 18/65

Basic Data

• Master records - include information about1. vendors

2. material and services to be procured

3. the relation between 1. and 2. ( purchasing inforecord )e.g. prices / terms and conditions

• bills of material for – production planning

 – purchasing – sales and distribution

 – withdrawal of Material

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 19/65

• invoice entry

• invoice verification

• payment handling

•  request for quotation

•  quotation processing

•  purch. order handling

Structure of the Vendor Master Record

General data

• name

• address

• control data

accounting data

• bank account

• acc. maintenance

• payment

purchasing

• terms and cond.

• partner functions

• currency

utilization

for each

purchasing

organization

client wide or

for each

company code

client wide

area of validitysections

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 20/65

Create a Vendor

Creating Your Own Vendor Master Record

Usage We recommend that you create your own vendor master

record for this scenario. If, however, you prefer to use the

reference vendor instead, it could be that the order currency

has already been changed and this IDES scenario may no

longer work. 

You create a German vendor in company code 1000, IDES AGGermany, to create purchase orders and invoices

denominated in euros. 

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 21/65

Create a Vendor

Menu Path  Logistics  Materials Management  

 Purchasing   Master Data  

Vendor   Central   Create 

Transaction Code  XK01 

Procedure 

1.Call up the transaction as follows: 

.

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 22/65

Create a vendor

Field  Data 

Vendor   Your own vendor (choose a

number between 1000 and

1999) 

Company code  1000 

Purch. organization  1000 

 Account group  LIEF 

Reference vendor   1080 

Reference company code  1000 

Reference purchasing

organization 

1000 

On the Create Vendor: Initial Screen, enter the following

data:

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 23/65

Create a Vendor

On the Create Vendor: Address screen, enter the following data:

Field  Data 

Description   Any 

Search term   Any, for example "euro" 

Street/House number    Any 

Postal code/City  5-figure, numerical (any) 

Country  DE 

Language  DE 

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 24/65

1. Choose until you reach the Create Vendor: Accounting andmake sure that 160000 appears in the Reconciliation Account

160000 field.

2. Choose until the Create Vendor: Purchasing Data screen

appears.

3. On the Create Vendor: Purchasing Data screen, check that the

order currency is EUR.

4. Choose until the Create Vendor: Partner Functions screen

appears.

5. Choose until the Create Vendor: Partner Functions screen

appears.

6. Choose until the Create Vendor: Partner Functions screen

appears.

Create a Vendor

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 25/65

Create a Vendor

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 26/65

Create a Vendor

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 27/65

Create a Vendor

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 28/65

Views on the Material Master Recordeach view is maintained by a certain user department of the firm

accounting: valuat ion - und calculat ion-specif ic  information

requirements planning: information about mater ial requ irements

plannin g (e. g. reorder po int)

purchasing: e. g. responsible purchasing group, order unit

engineering: technical information   storage: information about warehousing , mater ial mo vements, ... 

forecast: information about the forecast ing of th e mater ial requ irements

S & D: informationen about sales o rders  and pr ice determ inat ion  

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 29/65

Demo: Create Material Master

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 30/65

Demo: Create Material Master

•Select the views: Basic data 1, Purchasing, Purchase Order

text, Gl. Plant Data/Storage 1, Accounting 1

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 31/65

Demo: Create Material Master

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 32/65

Demo: Create Material Master

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 33/65

Demo: Create Material Master

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 34/65

Demo: Create Material Master

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 35/65

Demo: Create Material Master

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 36/65

Demo: Create Material Master

SAVE

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 37/65

purchasing info record

info record

pricesterms & cond.

PO statisticstolerance levels

date

quotation

order

outlineagreement

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 38/65

outline agreem.

PO

Purchasing Process

MM

X X X

X X

determination: requirements

X X X

X X

determination: source of supply

vendor 1

vendor 2

vendor selection

vendor

PO

PO

purchase order processing

PO monitoring

goods received &

inventory mgmt.

PO invoice?=

invoice verification

?

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 39/65

Create Purchase Order (PO)

1

vendor known

purch. order

vendor 2

2

vendor not known

terms & cond.

outline

agrement

source list

vendor

info record

3

assigned purchase

requisition exists

(from user department)

purch. req.vendor 2

purch. order

purch. order

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 40/65

Purchasing Process

• Create a requisition

• First release of requisition

• Create RFQ (Request for Quotation) with

reference to requisition

• Create PO (Purchase Order) with reference to

RFQ

• Department receives material ordered (GR)

• Department pays invoice (MIRO).

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 41/65

Purchase Requisition

Document generated by a user department

or storeroom-personnel to notify the

purchasing department of items it needs toorder, their quantity, and the timeframe. It

may also contain the authorization to

proceed with the purchase. Also called

purchase request or requisition.

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 42/65

Request for Quotation

Is a standard business process whose purpose is

to invite suppliers into a bidding process to bid onspecific products or services. RFQ generally

means the same thing as IFB (Invitation For Bid)

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 43/65

Purchase Order

Buyer-generated document that authorizes a

purchase transaction. It sets forth thedescriptions, quantities, prices, discounts,

payment terms, date of performance or

shipment, other associated terms and conditions,

and identifies a specific seller.

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 44/65

Create Purchase Requisition

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 45/65

Create Purchase Requisition

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 46/65

Create Purchase Requisition

• In the item, enter your material, Plant= 1000, QT = 100

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 47/65

Create Purchase Requisition

• Save your Purchase requisition

• Take note of Purchase requisition number

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 48/65

Demo: Create Purchase Order

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 49/65

Demo: Create Purchase Order

• Open document overview: Click on document

overview button

• Choose “Selection variant list” icon 

•Then select “My purchase requisition”, you will get

your purchase requisition listed

•Click on “adopt” icon, your purchase requisition

will be copied to the purchase order (or you can

drag and drop it into the shopping cart)

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 50/65

Demo: Create Purchase Order

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 51/65

Demo: Create Purchase Order

• Enter your vendor, and price 30 euro and save

P i O d E (G d R i )

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 52/65

Posting an Order Entry (Goods Receipt)

MM 

Logistics

purchasing req. planning

inventory

controlling

invoice

verification

goods receipt

inventory mgmt.

goods issue. transferposting 

SDsales and

distrib.

PM

plant

maintenance

QM

quality

management

PPproductionplanning

FI

financial acc.

CO

controlling

AM

fixed assets mgmt.

i O d

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 53/65

Demo: Posting Order Entry (Goods Received)

1. Use T_code : MIGO

2. Select Goods Receipt3. Select Purchase Order

4. Enter PO number for goods to be received.

5. Hit "Enter"

D P i O d E ( )

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 54/65

Demo: Posting Order Entry (Goods Received)

6. Enter Document date & posting date

7. Enter Header text (comment) if necessary.8. Close detail data.

D P i O d E ( d d)

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 55/65

Demo: Posting Order Entry (Goods Received)

9. Notice that movement data is "101"

10. If you only received first item, then Check the "OK" box forfirst line item.therefore, the second item need not be processed

D P ti O d E t ( d i d)

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 56/65

Demo: Posting Order Entry (Goods Received)

11. If you only received 3 pcs out of 10 pcs of item one & 2 pcs out of

10 pcs of item two, then Check the "OK" box for both line item12. Input actual quantity (3 & 2 pcs ).

13. Hit "Enter"

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 57/65

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 58/65

Invoice Verificationinput

information invoice verification

output

information

ordersactions: 

• enter invoice

• verify invoice• post invoice

• update

relevant data

• (re-edit

invoice)

goods receipt

master data:

material

vendorsaccounts

terms & cond.

financial

accounting

asset

management

cost accounting

C t I i

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 59/65

Create Invoice

Create Invoice using Tcode MIRO

Enter the Purchase order no. and click on Enter,

to display the material details.

Enter the Required details in allTabs

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 60/65

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 61/65

Create Invoice (contd..)

Enter the Amount and click on save

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 62/65

Create Invoice (contd..)

Invoice is created

Demo: Invoice Verification

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 63/65

Demo: Invoice Verification

Using the tcode: MIRO"

Demo: Invoice Verification

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 64/65

Demo: Invoice Verification

Demo: Invoice Verification

8/13/2019 Introduction to SAP R3 (MM) (1)

http://slidepdf.com/reader/full/introduction-to-sap-r3-mm-1 65/65

Demo: Invoice Verification

net amount for

positions