Material Management:

1. Plant:
Plant is an operating area or a branch or a location within a
company.
Each 'Plant' is assigned to a single 'company code'.
A 'company code' can have several 'Plants'.

2. Storage Location:
Storage location is a place where stock is kept physically.
Plant can be consisting of multiple storage location.

A storage location has the following attributes:

A storage location has a description and at least one address.

It is possible to store material data specific to a storage location.

Stocks are managed only on a quantity basis and not on a value

basis at storage location level.

Physical inventories are carried out at storage location level.

3. Purchasing Organization:
Purchasing Organization is an organizational unit under
company or plant which is responsible for procurement
activities according to requirements.
It is responsible for external Procurement.
Purchasing organization can be specific to plant or company.

Purchasing Group:

Purchasing group is an organizational unit which is responsible for

everyday procurement activities within an organization.
 Workflow T-code Table Next Process

Purchase Requisition ME51N

Source Determination -
ME41
RFQ

Vendor Selection and

Comparison of ME49
Quotation

Purchase Order ME21N

Purchase Order Follow

ME91, ME91F, ME92F
ups

Goods Receipts MB01

Invoice Verification MIRO

1. Purchase Requisition (ME51N)

Material requirement are identified either by the user, department or via material planning
and control. For example a MRP Run in production planning or material falling short of
reorder-point can automatically generate Purchase Requisition. At the same time PR can be
created manually in the system.

2. Source Determination - RFQ (ME41)

Identify the possible source of supply based on the past order and existing long term purchase
contract. Then create Request for Quotation, which can be then sent electronically to vendors.

3. Vendor Selection and Comparison of Quotation (ME49)

After receiving quotation system is capable to simulate pricing scenarios, allowing user to
compare number of quotations and sent rejection letter automatically.

4. Purchase Order (ME21N)

Data from Quotation or Purchase Requisition can be adopted to create Purchase Orders.
Purchase Order is then sent to Vendor to supply the goods.

5. Purchase Order Follow ups ME91, ME91F, ME92F

Reminder can be sent to vendors at predefined intervals.

6. Goods Receipts (MB01)

Goods were received.

7. Invoice Verification (MIRO)

Along with the goods vendor also submits Invoice, system verifies then invoice against the
quantity received and PO data. The account payable clerk is notified.

Important Transactions in MM

MM01 Material Creation

Me51N Purchase Requisition
Me41 Request for Quotation
Me49 Comparison of Quotation
Me21N Purchase Order Creation
MIGO, MB01 Goods Receipt
MIRO Invoice Verification
MB1A Good Issue

Tables in MM

MARA Material General

MARC Material Plant Data
MAKT Material Description
MARD Material Storage Location Data
MAST Material BOM Link
MBEW Material Valuation
MKPF Material Document Header
MSEG Mateial Document Line Item
MVKE Mateial Sales Data
T023 Material Group
T024 Purchase Organization
EBAN Purchase Requisition
EBKN Account Assignment Purchase Requisition
EINA Purchasing Info Record - General Data
EINE Purchase Info Record - Purchase Organization Data
EKKO Purchase Order Header Data
EKPO Purchase Order Line Item Data
EKKN Account Assignment Purchase Order
EKBE History Purchase Order
EKET Scheduling Agreement Purchase Order
EKAB Release Documentation
Useful T-codes related to material master

1. Change MMR - MM02

2. Display MMR- MM03
3. Materials List - MM60
4. Schedule changes - MM14
5. Display changes -- MM04
6. Change material type - MMAM
7. Mass maintenance - MM17
8. Flag for deletion - MM06
9. Maintain storage locations - MMSC.
10. Extend Material views - MM50

Creating a material in SAP

We use MM01 T-code to create a material in SAP, the material contains different views like
basic view(Contains material basic information), Sales View(contains sales information),
Classification(Characteristic information), Sales General/Plant data(contains sales and plant
information), MRP(contains MRP information) etc, based on the material type and the
available information the material will be created....In the below example we are going to
create a material with basic details, plant details etc.

Go to T-code MM01 (Create Material), provide material number, industry sector, material
type and press enter.
A pop up will open, select basic data1, basic data2, Sales:general/plant data views and press
enter.

Provide plant(list of plants are available in T001W table), Sales Org (list of sales
organizations are available in TVKO table), Distribution Channel( all the distribution
channels are available in TVTW table) and press enter.
Provide material description(Mandatory), Base Unit of Measure(mandatory) and other
optional fields like material group(all material groups are available in T023 table),
Division(all divisions are available in TSPA table) etc.

Go to Sales: sales Org. 1 view and enter required fields.

Go to sales text view and provide some sales text (optional)
As per the requirement fill the fields and save, material is created.

To display created material Go to MM03, provide material no TESTMAT001, display.

To change material go to MM)2, provide material no TESTMAT001, enter, select view to

change data.
Below are the t-codes related to Material Management(MM) module in SAP.

Content T-code
MATERIAL MASTER DATA
Create Material Master MM01
Maintaining Material Master MM02
Display Material Master MM03
Changing Material Type MMAM
Flagging a Material for Deletion MM06
Schedule Material for Deletion MM16
VENDOR MASTER DATA
INVENTORY VENDOR MASTER DATA:
Create, Change Display Vendor Master- Centrally/Purchasing and
XK01/XK02/XK03
Accounting/Company
NON-INVENTORY VENDOR MASTER DATA:
Create a Non-PO related/One time/Employee Vendor Master FK01
Maintain a Non-PO related / One time/ Employee Vendor Master FK02
Display a Non-PO related / One time/ Employee Vendor Master FK03
Invoice Items Release- Block/Unblock MR02
Create a Non-Inventory PO Vendor Master (Centrally) XK01
PROCUREMENT MASTER DATA
SOURCE LIST:
Create /Display / Maintain /Delete Source List ME01
PURCHASING INFO. RECORDS:
Create / Change / Display Info Records ME11
PROCUREMENT
Display Purchase Req. with ref to Mat Master ME53
Create Purchase Order ME21
Change Purchase Order ME22
Print PO for Stock Item ME90
Create/ Change/ Display Shipping Notification VL31
Execute List Display/Open PO Report ME2L
Create,Change, Print Purch Requisition w/o Material Master; Assign
ME51/ ME56/ME57
Sources
Executing a List Display of Purchase requisition ME5A
Purchase Req- Collective Release ME55
Purchase Req- Individual Release ME54
Display vendor line items FBL1
Display Reqs by Acct Assignment ME5K
Create/Change/Display/Print Goods receipt ; perform adjustment; return
MB01/MB02/MB03
delivery
Create/ Change/ Display Shipping Notification VL31/VL32/VL33
CYCLE COUNT/PHYSICAL INVENTORY:
Create cycle count documents LX26
Print count documents LI04
Enter counts LI11/ MI04
 Content T-code
Create Recount Request MI11
Enter Recounts LI14
Generate List of Qty/Val differences MI20
Post Differences in WM / IM LI21 / MI07
EXCESS, OBSOLETE, SCRAP:
Create/Reverse Financial Reserve FB01
Change Material Status MB1B
Scrapping Material MB1A
INVOICE VERIFICATION
Processing Inventory Invoice Receipts MRHR
Reverse/Cancel Invoice Receipt MR08
Credit Memo (PO related) MRHG
Release Blocked Invoices MR02