2_SAP MM Level 1 Training

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MODULEMATERIALS MANAGEMENT


MM OverviewMM OverviewObjective of this session to knowObjective of this session to know• ScopeScope• Organization StructureOrganization Structure• Master Data in MMMaster Data in MM• ProcurementProcurement• Inventory ManagementInventory Management• Data and Process OwnershipData and Process Ownership


SAP Business Model

FINANCIAL ACCOUNTING

MGMT ACCOUNTING

ASSETS ACCOUNTING

PROFITABILITY ANALYSIS

DYNPROS, ABAPS, TABLES, ETCTECHNICAL BASE SYSTEM

MEASURE

LOGISTICS

PLANNING

CUSTOMERSUPPLIERSELLMAKEBUY

MAINTAIN

STOCK STOCKMMMM PPPP MMMMMMMM SDSD

PMPM

TOPDOWN

PLANNINGFIFI

COCOAMAM

CO/PACO/PA

HRHR PSPS


SAP R/3 Introduction to MM Module

Organization StructureOrganization Structure



Organizational Units in SAP

Plant - An organizational unit serving to subdivide an enterprise according to production, procurement, maintenance, and materials planning aspects. It is a place where either materials are produced or goods and services provided.

Purchasing Organization - An organizational unit subdividing an enterprise according to the requirements of Purchasing. It procures materials and services, negotiates conditions of purchase with vendors, and is responsible for such transactions.

Storage Location – An organizational unit allowing the differentiation of material stocks within a plant. All data referring to a particular storage location is stored at storage location level. Several storage locations can be assigned to a plant.


Organizational Structures

ClientClient

Company codeCompany code

PurchasingPurchasingorganizationorganization

PlantsPlants

Store LocationsStore Locations

3001 1002

520

1013001

30103000

TL01 TL02

3002 1001

TL03

TLMAL Plant

TLMAL XXXX

TLMAL Purchase

XXXX

XXX YYYY

102 YYYYYYYY

DA01 FG01

PurchasingPurchasingGroupsGroups

TLMAL


SAP R/3 Introduction to MM Module

Master Data Master Data inin

Materials ManagementMaterials Management


Master Data in MMMaster Data in MM

• Material MasterMaterial Master• Vendor MasterVendor Master• Purchase Info RecordsPurchase Info Records• Source ListSource List• Excise MasterExcise Master• Service MasterService Master• Quota ArrangementQuota Arrangement

Master Data Organization


It is a Central Master record for logistics

Production planning

Project Systems

Product costing

Quality management

Sales and distribution

Material

Plant maintenance

Inventory management on a quantity and

value basis

Purchasing---------------------------------

Invoice verification

Material requirementsplanning

What is Material Master ?


Views in a Material master record

Material master record

MRP

St

t

Sales and distribution

Purchasing

Warehouse Management

Storage QualityManagement

CostingAB

Classification

CTN & Octroi

ForecastAccounting

Basic


Material Master Record

Basic DataBasic Data• Material NumberMaterial Number• DescriptionDescription• Base Unit of MeasureBase Unit of Measure• Drawing NumberDrawing Number• Revision levelRevision level

MRP DataMRP Data• MRP TypeMRP Type• Lot Size KeyLot Size Key• MRP ControllerMRP Controller• Procurement TypeProcurement Type• Bulk IndicatorBulk Indicator• ABC IndicatorABC Indicator

Purchasing DataPurchasing Data• Purchasing unitPurchasing unit• Material GroupMaterial Group• Purchasing GroupPurchasing Group• Source list requirementSource list requirement• Quota requirementQuota requirement

Storage DataStorage Data• Storage LocationStorage Location• Container TypeContainer Type• Cycle Counting for PICycle Counting for PI• Profit CenterProfit Center

Sales DataSales Data• Shipping PointsShipping Points• Loading pointsLoading points• Sales TextsSales Texts

Quality Mgt. DataQuality Mgt. Data• Inspection RequiredInspection Required• Inspection TypeInspection Type• Certificate RequiredCertificate Required

Accounting DataAccounting Data• Valuation categoryValuation category• Valuation ClassValuation Class• Price ControlPrice Control• Moving Av PriceMoving Av Price• Standard Price Standard Price

Costing DataCosting Data• Product CostingProduct Costing• Material OriginMaterial Origin• Planned Price Planned Price

Octroi CTN DataOctroi CTN Data• CTN NumberCTN Number• Octroi CodeOctroi Code• Schedule 6 IndSchedule 6 Ind• XYZ IndicatorXYZ Indicator


How materials can be identified ?

Materials can be classified in these Materials can be classified in these categoriescategories

• Materials GroupMaterials Group• Material TypeMaterial Type• Procurement TypeProcurement Type• ABC IndicatorABC Indicator• Valuation TypeValuation Type• Purchasing GroupPurchasing Group• MRP TypeMRP Type


• AddressAddress

• Purchasing DataPurchasing Data

• Payment dataPayment data

• Administration DataAdministration Data

Master Data VendorVendor Master Master


Master Data Purchase Info RecordPurchase Info Record

• It is Price related Data uniquely It is Price related Data uniquely maintained for maintained for • Material numberMaterial number• PlantPlant• Vendor Code Vendor Code • Purchase Org.Purchase Org.

• Data maintained separately for Data maintained separately for • Standard Standard • SubcontractingSubcontracting


Master Data What does a Purchase Info Record What does a Purchase Info Record contain ?contain ?

• Header DataHeader Data• Payment termsPayment terms• Delivery TermsDelivery Terms• Tax CodeTax Code

• Purchase Data Purchase Data • ConditionsConditions• Rate and unit of rateRate and unit of rate• ScalesScales


The source list supports

supply decisions.

• Source list contains– time period– allowed vendors for a material– preferred vendors for a material

Validity Period for the use of a vendor for a material

Source ListSource ListMaster Data


Master Data Excise MasterExcise Master

• Material Chapter IDMaterial Chapter ID• Assessable Value Assessable Value • Input - Output relationInput - Output relation• Vendor Excise DetailsVendor Excise Details• Plant Excise DetailsPlant Excise Details• Excise Rates Excise Rates


Service Master Record


Quota Arrangement


ProcurementProcurement


PO /PO /SASA

PurchasePurchase InfoInfo

RecordRecordPricePrice

CompareCompareMaintainMaintain

QuotationQuotationRFQRFQPurchase Purchase

RequisitionRequisition

DirectDirect

MRPMRP

VendorVendor

PricePriceApprovalApproval VendorVendor

PR… to… PO Journey


THE GRAND THE GRAND DESIGN !!DESIGN !! Requisiti

onRequirementsdetermination

1.

Vendor selection

3.

Source determination

2.

Vendor payment

8.

Purchase Orderprocessing

4.

PurchaseOrder1020

Orderfollow-up

5.

Invoice1020 Invoice

Verification

7.

BasicProcurement Process

Goods receipt and Inventory Mgmt

6.


Building Planning Approval Interior work

Repairs Inspection

Cleaning buildings Data entry Secretarial services Marketing activities

EXTERNAL SERVICES


Determinationof

requirements

Construction of service

specifications

Bid invitation

Entry ofquotation

Vendor selectionOrdering /monitoring

Serviceentry/

purchase

Invoice verification

User department PM Plant Maintenance PS Project System

EXTERNAL SERVICES CYCLE


Vendor EvaluationVendor Evaluation


Purchasing: Vendor Evaluation

automatically determined other eligible criteria weighting in %

Overall rating of vendor

Price QualityQuality Delivery

Other Other

Other

Other

On-time delivery

Quantity reliability

Shipping instructs.

TechnologyInsp. of Goods Rec.

Shopfloor complaint

Quality audit

Price level

Price behavior

Service


Inventory ManagementInventory Management


Inventory ManagementFunctions of Inventory Management :

To manage the stocks on a quantity & value basis

Plan, enter & check the goods movements like : Goods receipts Goods issue Transfer postings To carryout the physical inventory . Management of special stocks.

Inventory Management

Goods Receipt

Goods Issue

Transferpostings Physical

Inventory Reservation


Goods Receipt


Reservation


Goods Issue


Stock Transfer / Transfer Posting


Movement Type


Physical Inventory


Invoice Verification


Integration with Integration with other Modulesother Modules


MASTER DATAMaterial

Special stockBatch

Vendor/one-timecustomer

Purchasinginfo record

Servicespecifications

TextsClassificationDocumentsConditions Pu

rcha

sing

info

rmat

ion

syst

emVe

ndor

eva

luat

ion

Purchase requisitionPURCHASING

MRP Direct requisition Release procedures

RFQ/Quotation Material/service Price comparisons Price comparison list

Purchasing Purchase orders Outline agreements Scheduling agreements

Goods receipt/issue Transfer posting Quantities and values Physical inventory Storage bins

Check and post Price update

INVENTORY MANAGEMENT

INVOICE VERIFICATION

SDSD

PPPP

PMPM

QMQM

FIFI

AMAM

COCO

PSPS

Third-partyorder

Requirements

Service /spare parts

Inspection lot

G/L accountsCash managementand forecastFixed assets

Cost center /Budget

Project

MM INTERGRATION OVERVIEW


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