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1.IntroductiontoSAPMM
1. WhatisSAP?Howisitusedinindustries?
SAPisthemostpopularenterpriseresourceplanning(ERP)softwareapplicationusedtoprovideenterprise
businesssolutions.Itwasfirstintroducedin1972inMannheim,Germany.SAPstandsforSystems,Applications,and
ProductsinDataProcessing.
SAPprovidescompletebusinesssolutionsbyintegratingvariousbusinesstaskssuchassales,purchase,and
production.SAPtakesinformationfromonebusinessprocessandincorporatesitintoanotherbusinessprocess,therebyspeeding
upallbusinessprocesses.Forexample,informationabouttherawmaterialinstockisusedbytheproductiondepartmentto
determinehowtoprepareproducts.
SAPiswidelyusedinvariousindustriesbecauseasitupdatesandprocessesimportantdataveryquickly,it
canautomatebusinessprocessesandproviderealtimesolutionsforbusinesses.
2.BrieflydescribethehistoryoftheSAPsoftware.
TheSAPsoftwarewasdevelopedbyacompanyofthesamename.SAP(thecompany)wasfoundedin1972by
fiveformerIBMemployees:DietmarHopp,HansWernerHector,HassoPlattner,KlausTschira,andClausWellenreuther.
SAPreleaseditsmainframeproduct,calledSAPR/2,in1979.Theclient/serverversionoftheSAP
software,calledSAPR/3,wasreleasedin1992.Today,SAPisthelargestvendorofstandardbusinessapplicationsoftware.
SAPconstantlydeliversscalablesolutionstoitscustomers,allowingthemtorespondtodynamicmarket
conditionsandhelpingthemtomaintainanadvantageovertheircompetitors.SomeofthemajorSAPapplicationspresently
availablearedefinedinquestion4andincludeSAPR/3,mySAPERP,mySAPCustomerRelationshipManagement(CRM),
mySAPSupplierRelationshipManagement(SRM),mySAPSupplyChainManagement(SCM),andmySAPProductLifecycle
Management(PLM),tonameafew.
3.WhatismySAPERP?Whataretheotherbusinesscomponents?
mySAPERPisthenextgenerationERPapplicationfromSAPAGinGermany,andwasfirstlaunchedin
2003.ThemySAPERPapplicationhasallthefeaturesofpreviouslyreleasedSAPERPsoftware,suchasSAPR/3andSAP
StrategicEnterpriseManagement(SEM),alongwithitsownextensions.ThemySAPERPapplicationprovidesecommerce
solutionsbyusingWebtechnology.ThemySAPERPapplicationhasthefollowingadvantages:
o Mobileinfrastructure,whichimprovesworkforcemobility
o Transparencythroughabusinessintelligenceframework
o Deliveryofpeoplecentricservices
o Fasteraccesstoinformation,whichfacilitatesquickdecisionmaking
o Seamlessintegrationofprocessesthroughoutthebusiness
mySAPERPincludesthefollowingproducts:
o mySAPEnterpriseResourcePlanning(ERP)
o mySAPSupplyChainManagement(SCM)
o mySAPSupplierRelationshipManagement(SRM)
o mySAPCustomerRelationshipManagement(CRM)
o mySAPProductLifeCycleManagement(PLM)
mySAPR/3canbeclassifiedintothefollowingbusinesscomponents:
o Financialapplications
o Humanresourceapplications
o Logistics
o Salesanddistributionapplications
4.WhataretheindustryspecificsolutionsavailableinmySAP?
ThemySAPERPapplicationprovidesbusinesssolutionsforalmosteveryindustry,includingautomotive,chemical,andmedia.
VariousindustryspecificsolutionsavailableinmySAPincludethefollowing:
mySAPAutomotive
mySAPAerospaceandDefense
mySAPConsumerProducts
mySAPBanking
mySAPChemicals
mySAPHighTech
mySAPEngineeringandConstruction
mySAPHealthcare
mySAPHigherEducationandResearch
mySAPInsurance
mySAPMedia
mySAPOilandGas
mySAPMillProducts
mySAPMining
mySAPPublicSector
mySAPPharmaceuticals
mySAPServiceProviders
mySAPRetail
mySAPTelecommunications
mySAPUtilities
5.WhatisSAPR/3?
SAPR/3isanERPsoftwarethatwasofficiallylaunchedin1992.ItisareplacementfortheSAPR/2mainframe
computingbasedERPsoftwareandisbasedonclientservercomputing.Withtheadventofclientservercomputing,SAPAG
inGermany(founderoftheSAPERPsoftware)launchedSAPR/3toprovideclientserverbasedrealtimebusinesssolutions.
Theletter"R"inSAPR/3representstherealtimebusinessdataprocessing,whilethenumber"3"representsthethreetiersin
clientservercomputing.
Thethreetiersinclientservercomputingare:presentation(client),application(businesslogic),anddatabase(storesthe
actualbusinessdata).
SAPR/3integratesvariousbusinessareas,suchassales,purchase,andprocurement,byusingdifferentfunctional
modules,suchasMaterialsManagement(MM),SalesandDistribution(SD),Financial(FI),Controlling(CO),andHuman
Resource(HR).
DifferentversionsofSAPR/3include3.1i,4.0b,4.5b,4.6b,4.6c,ECC5.0,ECC6.0;thelatestversionisECC6.0.
6.HowdifferentversionsofSAPevolved?
Sinceitsinception,SAPhascontinuedtosupportchangingbusinessprocessesandtoadaptitselftotheneedsoforganizations.
Inordertosupportthemostcurrentbusinessstrategies,SAPhasevolvedovertimeandprogressedthroughthefollowing
versions:
SAPR/1ThiswasthefirstversionofSAPandwasdevelopedforfinancialaccountingsystems.Thisversionisno
longeravailable.
SAPR/2ThiswasthesecondversionofSAP.ItreplacedtheR/1versioninthe1970sandwasamainframebased
businessapplication.SAPR/2supportedmultiplecurrenciesandlanguagestohelpinternationalizebusinessmanagement.This
versionisalsonolongeravailable.
SAPR/3ThisversionreplacedSAPR/2,addingsupportforclientserverbaseddistributedsystems.Thisnewversionof
SAPismultiplatformed,meaningitcanbeinstalledandusedonmultipleplatforms,suchasWindowsorUNIX.
7.WhyareindustryspecificsolutionsusedinSAPR/3?
IndustryspecificsolutionsareusedintheSAPR/3ERPapplicationinordertoautomatevariousbusinessprocessesfor
almosteveryindustry,includingautomotive,oilandgas,andchemical.Byautomatingbusinessprocesses,theSAPR/3
applicationhelpsorganizationsmeetthefollowingchallenges:
o EmergingmarketsEarningrevenueinemergingmarkets
o CompetitionMaintainingsuccessfulbusinessoperationsinaworldoffiercecompetition
o IncreasingdemandsHandlingincreasingandvaryingcustomerdemands
o LaborissuesSolvingtheproblemsthatariseforbusinessoperationsrequiringefficientskilledlabor
o WorkforceshortagesSolvingtheproblemofashortageofskilledpersonnel
Theimportanceofindustryspecificsolutionscomesfromaverybasicfoundationofthought:everytypeofbusinessis
uniqueandthereforeneedstobecateredtoaccordingly.Thesamephilosophymaynotbeapplicableforautomotivebusinesses
andintegratedsteelplants,becausebothrequireentirelydifferentapproachestobusinessplanning.Theautomotiveindustryis
basedontheassemblingofequipmentandpartsdiscretemanufacturing,whereastheintegratedsteelplantisacontinuous
manufacturingunit.Therefore,eachbusiness'sfunctionalitiesaredifferentinareassuchasproductionandinventory
management.
8.WhatbenefitsareenvisagedafterimplementingSAPinanyorganization?
AftertheinstallationofSAPR/3inanorganization,thefollowingchangeswilloccur:
Improvementinprojectmanagementandprojectexecutioncapabilities
Integrationofsuppliersandsubcontractors
Optimizationofsalesordercapabilities
Comprehensivebusinesssupportspecifictoaparticularindustrytype
Minimalcostofownership
Uniformityofbusinessprocesses
Abilitytomakesafestrategicchoices
9.WhatarethedifferentModulesinSAPR/3?
Tointegratevariousbusinessprocesses,SAPR/3comeswithvariousmodules,suchasMM,SD,andCO.Thesemodulesare
furthergroupedintovariousbusinessfunctionalareas.ThefunctionalareasandtheSAPR/3modulesinthosefunctional
areasareasfollows:
FinancialapplicationsDealswithanorganization'sfinancialmatters,suchaspreparingandanalyzingfinancial
documentsandreportingthedocumentoutputtotheappropriateauthoritiesforfurtherprocessing.Tomanageallthese
concerns,thefollowingSAPR/3modulesaregroupedinthisfunctionalarea:
o FIFinancialAccounting
o COControlling
o ECEnterpriseControlling
o IMInvestmentManagement
o TRTreasury
HumanresourcesDealswithdocumentsrelatedtoanorganization'shumanresourcesdepartment.TheSAPR/3
modulesgroupedinthisareahelpanorganizationtomanageprocessessuchassalarycreationanddistribution,employees'
payrollacrosstheorganization,andtransferringdatatootherrelevantdepartments,suchasfinance.Thisareaconsistsofthe
followingmodules:
o PersonnelManagement
o TimeManagement
o Payroll
o TrainingandEventManagement
o OrganizationalManagement
LogisticsapplicationsThisisthelargestareacoveredbySAPR/3.Thisareahelpsmanagebroadlevelbusinessprocesses
suchassalesanddistributionofproducts,materialsmanagement,productionplanning,andqualitymanagement.Thisarea
consistsofthefollowingmodules:
o MMMaterialsManagement
o SDSalesandDistribution
o PPProductionPlanning
o PMPlantMaintenance
o LOLogistics
o QMQualityManagement
o PSProjectSystem
o WMWarehouseManagement
10.WhatarethecorefunctionalitiesoftheSAPsystem?
ThecorefunctionalitiesoftheSAPsystemareSalesandDistribution(SD),MaterialsManagement(MM),Financial
Accounting(FI),andProductionPlanning(PP).Inthefirstphase,companiesimplementtheSAPsoftwarewiththesecore
functionalities.Later,inthesecondandthirdphases,theymayalsointroduceotherfunctionalities,suchasControlling(CO),
WarehouseManagement(WM),andHumanResource(HR).However,thetypesofmodulesandthephasingofimplementation
dependssolelyonthetypeofindustryinwhichtheclientworks,aswellastheorganization'sreadinessandtheurgencywith
whichtheintegratedenterprisesystem,suchasSAP,mustbeadopted.
11.HowcanyoudefineanMMmodule?WhatisitsimportanceinSAPR/3?
MMstandsforMaterialsManagementandisapartoftheLogisticsfunctionalareaofSAPR/3.ItisanimportantSAPR/3
modulebecauseithelpsmanagebroadlevelbusinessactivities,suchasprocurement,valuationandassignment,batch
management,andmaterialsstorage.Sincematerialsarethemostpreciousresourceofanorganization,extremecareneedstobe
takeninalltheprocessesrelatedtomaterialsmanagement.EfficientmaterialsmanagementistheessenceoftheMMmoduleof
SAPR/3.
12.HowistheMMmoduleintegratedwithothermodulesofSAP?
TheMMmoduledealswithmaterialsprocurementonthebasisoftheproductionrequired;therefore,itislinkedwiththe
PPmodule.
TheSDmoduleisproportionallyrelatedtotheMMmodule,becauseitusesinformationaboutthequantityofmaterial
sentforproduction.
TheWMmoduleisrelatedtotheMMmodule,becausetheMMmodulemaintainsinformationaboutmaterialsstorage
andmaterialstransfersinsideanorganization.
TheFImoduleisalsorelatedtotheMMmodule,becauseeveryoperationperformedintheMMmoduledirectlyimpacts
thefinancialprocessesoftheorganization.
13.WhatarethemaincomponentsoftheMMmodule?HowarethesecomponentsusedinSAP?
TheMMmoduledealswithmaterialsprocurementonthebasisoftheproductionrequired;therefore,itislinkedwiththe
PPmodule.
TheSDmoduleisproportionallyrelatedtotheMMmodule,becauseitusesinformationaboutthequantityofmaterial
sentforproduction.
TheWMmoduleisrelatedtotheMMmodule,becausetheMMmodulemaintainsinformationaboutmaterialsstorage
andmaterialstransfersinsideanorganization.
TheFImoduleisalsorelatedtotheMMmodule,becauseeveryoperationperformedintheMMmoduledirectlyimpacts
thefinancialprocessesoftheorganization.
2.OrganizationalStructure
1. WhatistheorganizationalstructureintheMMmodule?
TheorganizationalstructureintheMMmoduleisahierarchyinwhichvariousorganizationalunitsarearrangedaccordingto
theirtasksandfunctions.Thedifferentorganizationalunitsthatconstitutetheorganizationalstructureofthecompanyareas
follows:
ClientAselfcontainedunitintheSAPsystemwithseparatemasterrecordsanditsownsetoftables.
CompanycodeThesmallestorganizationalunit.Youcancreateanindependentsetofaccountsforthisunitforthe
purposeofexternalreporting.
PlantAnorganizationalunitwherematerialsareproducedorgoodsandservicesareprovided.Youcandividean
enterpriseintovariousplantsaccordingtoproduction,procurement,maintenance,andmaterialsplanning.
StoragelocationAnorganizationalunitwherethegoodsproducedintheplantarestored.
WarehousenumberAnalphanumerickeythatrepresentsawarehousingsystem,whichismadeupofdifferent
organizationalandtechnicalstorageareas.
StoragetypeAnareasuchasagoodsreceiptarea,goodsissuearea,orpickingarea.Alsothephysicalorlogicaldivision
ofacomplexwarehouse.
PurchasingorganizationAnorganizationalunitthatprocuresmaterialsandservicesandnegotiateswithvendorsto
purchasematerialsorgoods.
PurchasinggroupAnalphanumerickeyforabuyeroragroupofbuyerswhoareinvolvedinpurchasingactivities.The
purchasinggroupisresponsibleformaterialsprocurementanddealingwithvendors.
2.WhatarethelevelsoforganizationalunitsofEnterpriseStructureinR/3?
TheclientisthehighestlevelunitoftheorganizationalunitsinEnterpriseStructureinSAPR/3.Theclientisfollowedbythe
companycode,whichrepresentsaunitwithitsownaccounting,balance,andprofitandloss(P&L).Thenextlevelof
organizationalunitsinEnterpriseStructureistheplant,whichrepresentsanoperationalunitofacompany.
3.DefineClient.WhatisitsimportanceinSAP?
Aclientcanbedefinedasaperson,company,ororganizationthatpurchasesgoodsfromanotherperson,company,or
organization.IntermsofSAP,aclientisdefinedasaunitthathasitsownmasterrecordsandasetoftables.Theclientis
importantinSAPbecauseitstoresandmaintainsdataabouttheorganizationwhereSAPisimplemented.
4.HowtocreateaclientinMMmodule?
YoucancreateaclientintheMMmoduleeitherbyusingthetransactioncodeSCC4orbyperformingthefollowingsteps:
SelectSAPMenu>Tools>Administration>Administration>ClientAdministration.
DoubleclickSCC4ClientMaintenance.ThedisplayviewClients:Overviewscreenappears.
SelectDisplay>Change.Theinformationdialogboxappears.
ClickContinue.ThechangeviewClients:Overviewscreenappears,whereyoucancreateanewclient.
5.Definecompany.Howisitdifferentfromaclient?WhatarethedatainMMthatare
maintainedatthecompanycode
level?
Acompanyisanorganizationalunitforwhichindividualfinancialstatementsaredrawnpertherelevantcommercial
laws.Acompanyconsistsofoneormorecompanycodes.Withinacompany,allcompanycodesmustusethesametransactions
inadditiontothesamefiscalyearbreakdown;however,companycodecurrenciescanvary.
Acompanyisdifferentfromaclientbecauseaclientcanitselfbeacompany,oranorganizationthathasmultiple
companies.Forexample,theowneroftheentireSAPsystemisaclient.Thesystemwillhaveonlyoneoperationalclient,but
theclientmayfurtherhaveagroupofcompanies.Thefollowingdataareheldatthecompanycodelevel:
o Materialnumber
o Classificationdata
o Multilingualdescription
o Unitsofmeasure
o Technicaldata
6.HowtocreateacompanycodeinSAP?
InSAP,acompanycodeiscreatedusingthetransactionOX02.Thecompanycodefieldisrepresentedbyafourcharacter
alphanumericstring.YoucancreateacompanycodeinSAPbyperformingthefollowingsteps:
o OpentheSAPCustomizingImplementationguide.
o SelectEnterpriseStructure>Definition>FinancialAccounting>Edit,Copy,Delete,CheckCompanyCode.TheChoose
Activitydialogboxappears.
o DoubleclickEditCompanyCodeData.ThechangeviewCompanyCode:Overviewscreenappearswhereyoucancreatea
companycode.
7.HowcanyouassignacompanycodetoacompanyinSAP?
InSAP,acompanycodeiscreatedusingthetransactionOX02.Thecompanycodefieldisrepresentedbyafourcharacter
alphanumericstring.YoucancreateacompanycodeinSAPbyperformingthefollowingsteps:
o OpentheSAPCustomizingImplementationguide.
o SelectEnterpriseStructure>Definition>FinancialAccounting>Edit,Copy,Delete,CheckCompanyCode.TheChoose
Activitydialogboxappears.
o DoubleclickEditCompanyCodeData.ThechangeviewCompanyCode:Overviewscreenappears,whereyoucancreatea
companycode.
8.Howmanychartsofaccountscanbeassignedinacompany?
Yes.OnechartofaccountscanbeassignedtoseveralCompanyCodes.However,thereverseisnotpossible;i.e.,youwillnotbe
ableassignmorethanonechartofaccountstoasingleCompanyCode.
9.Howmanycompanycodescanbeassignedinonechartofaccounts?
Youcanassignmanycompanycodestoachartofaccounts.
10Howmanycompanycodescanbeassignedtoacompany?
Youcanassignonlyonecompanycodetoaplant.
11.WhatisaplantinMM?
Aplantisanorganizationalunitwherematerialsareproducedorgoodsandservicesareprovided.InSAP,aplantis
representedbyauniquefourdigitalphanumericnumber.Aplantisallocatedtoonecompanycode,andacompanycanhave
manyplants.Intheorganizationalunit,aplantcanbeatoneofthefollowinglocations:
Corporateheadquarters
Centraldeliverywarehouse
Manufacturingfacility
Regionalsalesoffice
12.HowisaplantdefinedinMM?
YoucandefineaplantintheMMbyperformingthefollowingsteps:
SelectIMG>EnterpriseStructure>Definition>LogisticGeneral>define,Copy,Delete,CheckPlant.
ClickExecute.TheChooseActivitydialogboxappears.
SelectDefinePlanttocreateaplant.ThechangeviewPlants:Overviewscreenappears.
ClickNewEntries.TheNewEntries:DetailsofAddedEntriesscreenappears.
Specifytheplantcodeintheplantfield.
ClicktheaddressicontodisplaytheEditAddressfield.
Specifytherequiredvaluesinthefields,suchasTitle,Name,andSearchTerm1/2.
ClickOK.TheNewEntries:DetailsofAddedEntriesscreenappearsagain.
ClicktheSaveicontosavethenewlydefinedplant.
13.Whataretheprerequisitesforcreatingaplant?
Therearethreeprerequisitesthatarerequiredinordertocreateaplant.Theyareasfollows:
CompanycalendarComprisedofworkdays,publicholidays,andcompanyholidays.EverySAPsystemisprovidedwitha
companycalendarthatcanbemodifiedperthescheduleofthecompany.
CountrykeyHelpsindefiningaplant.
RegionkeyReferstoastateorprovincethatisassociatedwiththecountry.Itisrequiredalongwiththecountrykey.
14.Howmanycompanycodescanbeassignedtoaplant?
Youcanassignonlyonecompanycodetoaplant.
15.Canacompanycodebeassignedtomanyplants?
Youcanassignmanyplantstoonecompanycode.
16.Whatisthemenupathtoassignaplanttoacompanycode?
Youcanassignacompanycodetoaplantbynavigatingthefollowingmenupath:SAPMenu>Tools>Customizing>IMG>
ExecuteProject>DisplayIMG(SAPreferenceIMG)>EnterpriseStructure>Assignment>LogisticsGeneral>Assign
CompanyCodetoPlant.
17.DefineStoragelocationinSAP.
Astoragelocationisdefinedbyperformingthefollowingsteps:
o SelectTools>Customizing>SAPReferenceIMG>EditProject.
o SelectEnterpriseStructure>Definition>MaterialsManagement>MaintainStorage.
o Clicktheclockicon.TheDetermineWorkArea:Entrydialogboxappears.
o Specifythevalue(P001)fortheplantinthedialogbox.
o Clickthecheckmarkicon.ThechangeviewStorageLocations:Overviewscreenappears.
o ClickNewEntries.TheNewEntries:DetailsofAddedEntriesscreenappears.
o Specifythevalueofthestoragelocationanddescriptionfields.
o ClicktheSaveicontosavethestoragelocation.
o ClicktheExiticontocreatethestoragelocation.
18.Howwillyoudefineastoragelocation?
Astoragelocationisdefinedbyperformingthefollowingsteps:
SelectTools>Customizing>SAPReferenceIMG>EditProject.
SelectEnterpriseStructure>Definition>MaterialsManagement>MaintainStorage.
Clicktheclockicon.TheDetermineWorkArea:Entrydialogboxappears.
Specifythevalue(P001)fortheplantinthedialogbox.
Clickthecheckmarkicon.ThechangeviewStorageLocations:Overviewscreenappears.
ClickNewEntries.TheNewEntries:DetailsofAddedEntriesscreenappears.
Specifythevalueofthestoragelocationanddescriptionfields.
ClicktheSaveicontosavethestoragelocation.
ClicktheExiticontocreatethestoragelocation.
19.Howisastoragelocationassignedtoaplant?
YoucanassignastoragelocationtoaplanteitherbyusingthetransactioncodeOX09orbyperformingthefollowing
steps:
o OpentheSAPCustomizingImplementationguide.
o SelectEnterpriseStructure>Definition>MaterialsManagement>MaintainStorageLocation.Theview
clusterMaintenance:InitialScreenwindowappearswiththeDetermineWorkArea:Entrydialogboxopened.
IntheDetermineWorkArea:Entrydialogbox,enteraplantnumberandclickContinue.ThechangeviewStorage
Locations:Overviewscreenappearswhereyoucanassignastoragelocationtotheplant.
20.Canstoragelocationsbecreatedautomatically?Howcantheybecreatedautomatically?
Storagelocationscanbecreatedautomaticallywhenaninwardgoodsmovementforamaterialisperformed.Inordertocreate
storagelocationautomatically,opentheSAPImplementationguideandclickMaterialsManagement>Inventory
ManagementandPhysicalInventory>GoodsReceipt>CreateStorageLocationAutomatically.
3.MasterDatainSAPMM
1.WhatisMasterdatainMMmodule?
ThemasterdataintheMMmoduleactsasreferencedata,definingvariousbusinessentitiesandplayingakeyroleinthecore
operationofthebusiness.
2.HowismasterdataimportantinMMmodule?
ThemasterdataintheMMmodulecontainsallofthebasicinformationneededtomanagematerial.Thedataisstoredand
sortedonthebasisofdifferentcriteria,suchasthedescriptivenatureofthematerial(size,dimension,andweight)andthe
controlfunctionsofthematerial(materialtypeandindustrysector).Apartfromdatamaintainedbytheuser,themasterdata
alsostoresdatathatisautomaticallyupdatedbythesystem(suchasstocklevels).
3.WhatarethevarioustypesofmasterdatainMMmodule?
ThedifferenttypesofmasterdataintheMMmoduleareasfollows:
Materialmaster
Vendormaster
Purchasinginformationrecord
Sourcelist
Quotaarrangement
4.WhatisaMaterialMasterfile?
Amaterialmasterfilestoresandmaintainsalloftheinformationrelatedtomanagingamaterial.Thematerialmasterissorted
onthebasisofdifferentcriteria.
5.WhyarematerialmasterrecordsusedinSAP?
MaterialmasterrecordsareusedintheSAPR/3systemtomanagematerialspecificdata.Thematerialinformationstoredin
materialmasterrecordsisusedbyalllogisticsareasintheSAPR/3system.Thematerialmasterrecordsintegrateallmaterial
specificdataintoasingledatabaseobjectthateliminatestheproblemofdataredundancy.Becausematerialmasterrecords
storedatainasingledatabaseobject,thesamedatacanbesharedbyalldepartments,suchaspurchasing,inventory
management,materialsplanning,andinvoiceverification.
6.Howistheinformationofmaterialmasterrecordsupdated?
Youcanmanuallyupdatetheinformationinthematerialmasterrecords,however,therearesomeexceptionsforwhichthe
informationcanbeupdatedbytheSAPR/3systemonly,forexample,administrativedata.
7.WhatarethetypesofindustrysectorsdefinedinMaterialMasterdata?
Thedifferenttypesofindustrysectorsdefinedinthematerialmasterdataareasfollows:
o Aerospaceanddefense
o Beverage
o Chemicalindustry
o Foodandrelatedproducts
o Mechanicalengineering
o Pharmaceuticals
o Plantengineering/construction
o Retail
o Retailing
o Serviceproviders
8.Whatdatainmaterialmasterismaintainedattheclientlevel?
Thegeneraldata,i.e.,thedataapplicabletothecompanyasawhole,isstoredattheclientlevel.
9.Whatarethedatainmaterialmasterthataremaintainedatthecompanycodelevel?
Thedatathatisspecifictoaparticularcompanyandtheplantandstorageareasassignedtothatcompanyismaintainedatthe
companycodelevel.
10.Whataretheplantspecificdatainmaterial?
TheMRPdataandforecastdataaretheplantspecificdatainthematerialmaster.
11.Whatisthelotsizeattributeofamaterial?
Thelotsizeattributerepresentsthereorderquantityforamaterial.Amaterialcanhaveaperiodic,optimum,orstatic
(fixed)lotsize.
12.Howismaterialinformationstructuredinmaterialmasterrecords?
Materialinformationisstructuredinmaterialmasterrecordsonthebasisofdifferentcriteria,suchasthematerial'smaster
detail(includingitsname,size,dimension,andweight),whichshowsitsdescriptivenature,andthematerial'sdetailrelatedto
controlfunctions(suchasmaterialtype,pricecontrol,andindustrysector).Materialmasterrecordsalsostoreinformation
aboutthedatathatcanbeautomaticallyupdatedbythesystem.Forexample,thestocklevelcanbeautomaticallyupdatedby
thesystemonthebasisofthematerialdataupdate.
13.Whatisabatch?
Abatchisagroupofmaterialscombinedintoonequantityforvariousreasons.Veryoften,materialswiththesame
characteristicsandvaluesaregroupedintoabatch.Forexample,inthechemicalindustry,aspecifiednumberofcontainersofa
specificproductmaybeconsideredabatchiftheywereproducedatthesametimeandhavethesamephysicalandchemical
characteristics.
14.Whyisbatchrecordimportant?
Abatchrepresentsaquantityofaparticularmaterialprocessedatthesametimewiththesameparameters.These
materials,producedasonebatch,havethesamecharacteristicsandvalues,whichmayvaryfromthematerialsofanotherbatch
producedonthesameday.
AbatchrecordisimportantbecausebatchrecordsindicatethatthebatchconformstothecurrentGoodManufacturing
Procedures(GMP).Thebatchrecordalsocontainsspecificinformationabouttheproducttested,analyticalmethods,andtest
results.
15.Howtocreateabatch?
YoucancreateabatchrecordmanuallybyusingthetransactioncodeMSC1N.Thenavigationpathforcreatingabatch
is:SAPMenu>Logistics>MaterialsManagement>MaterialMaster>Batch>Create.
16.Whataretheimportantfieldsinabatchmasterrecord?
Theimportantfieldsinabatchmasterrecordareasfollows:
o ProductiondateReferstothedatewhenthebatchwasproduced.
o SelflifeexpirationdateReferstothedatewhenthelifeofthebatchwillexpire.
o AvailablefromReferstothedatefromwhichthebatchwillbeavailabletootherdepartments.
o BatchstatusAllowsthebatchtobeclassifiedashavingrestrictedorunrestricteduse.
o NextinspectionReferstothenextqualityinspectiondateofthebatch.
o VendorbatchReferstothebatchnumberassignedbythevendor.
o ClassAllowstheusertosortthebatchforuseinspecificclasses.
o CharacteristicsHelpsinassigningaclasstothebatch.
o ReleasestatusSpecifiesthestatusofthebatch.
o LinkeddocumentHelpstheusertolinkthedocumentsrelatedtothebatch.
o DocumenttypeAllowstheuserwhoispurchasingthebatchtospecifyadocument.
o DocumentHelpstheusertoselecttherelevantdocument.
o DocumentpartAllowstheusertoenterthepartofthedocumentthatisrelatedtothebatch.
o VersionSpecifiesthedocumentversionofthebatch.
17.Howcanbatchrecordsbechanged?
YoucanchangeabatchrecordbyusingthetransactioncodeMSC2N.Thenavigationpathofchangingthebatchrecord
is:SAPMenu>Logistics>MaterialsManagement>MaterialMaster>Batch>Change.
Itisimportanttonotethatthesechangestothebatchrecordwillalsobeavailableforreview.
18.Howtodeleteabatch?
YoucandeleteabatchbyusingtheMSC2Ntransactioncode.Youcanalternatelydeleteabatchrecordbyflaggingthebatch
masterrecord.Forthis,youneedtofirstselectthebatchintheChangemode.
19.WhatisBatchInformationCockpit?
TheBatchInformationCockpit(BIC)isthemainswitchingpoint,havingawiderangeofoptionsforscrutinyandcontrolof
batches.Itstoresatasinglelocationalltheinformationrelatedtotheanalysisofaparticularbatch.
20.Whatarethelevelsatwhichabatchnumbercanbeconfigured?
Abatchnumbercanbeconfiguredatseveraldifferentlevels:clientlevel,plantlevel,andmateriallevel.Youcanselectabatch
numberatanyofthefollowinglevels:
ClientlevelWhenyouconfigureabatchattheclientlevel,youneedtoassignthebatchnumberonlyoncethroughout
thewholeclient.Onlyonebatchnumberexistsforeachmaterialassignedatthislevel.
PlantlevelInSAP,theplantlevelisthedefaultlevelforthebatchnumber.Atplantlevel,abatchnumberisuniquefor
aplantandmaterial.Thismeansthatyoucanhaveabatchofthesamenumberatadifferentplantwithinthesamecompany.
MateriallevelAtthislevel,materialnumbersareassignedtotheproducts.Thematerialnumberhelpstodifferentiate
betweentwoproductsincasetheirbatchnumbersarethesame.Thematerialsareidentifiedbythecombinationofthematerial
numberandbatchnumber.
21.Howarebatchnumbersassigned?
ThebatchnumberispredefinedinSAP.YoucanchangethebatchnumberseitherbyusingtheOMADtransactioncodeorby
usingthenavigationpathIMG>LogisticsGeneral>BatchManagement>BatchNumberAssignment>MaintainInternal
BatchNumberAssignmentRange.
Followeitherofthetwoconfigurationstepstochangethebatchnumber:
Youcanassignabatchnumberinternallyusingtheinternalnumberrange,eitherbyusingtheOMCZtransactioncodeor
byfollowingthenavigationpathDisplayIMG>LogisticsGeneral>BatchManagement>BatchNumberAssignment>
ActivateInternalBatchNumberAssignment>ActivateBatchNumberAssignment.
YoucanalsoconfigurethesystemtoallowautomaticnumberingofabatchbyfollowingthenavigationpathDisplay
IMG>LogisticsGeneral>BatchManagement>BatchNumberAssignment>ActivateInternalBatchNumberAssignment
>InternalBatchNumberAssignmentforAssignedGoodsReceipt.
22.Whatisaserialnumber?
Aserialnumberisassignedtoanitemtoidentifyitandtostoreinformationaboutit.Aserialnumberismostlyusedtoreferto
equipmentsuchasmotors,drills,orvacuums.InMM,anitemofmaterialcontainsaserialnumberaswellasamaterial
number.Thiscombinationhelpstouniquelyidentifyanitemofmaterial.
23.Whatisaclasstype?Howwillyouconfigureaclasstype?
AclasstypeistheSAPsystem'stoplevelunit,whichisusedtocontroltheSAPsystem'sclasses.Itperformsthefollowing
tasks:
o Definestheclassobjects
o Checksifclassobjectscanbeusedinotherclassesornot
o Definestheclassmaintenancescreen
Youcanconfigureaclasstypebyusingthefollowingmenupath:SAPCustomizingImplementationGuide>Cross
ApplicationComponent>ClassificationSystem>Classes>MaintainObjectTypesandMaterialTypes.
24.Amaterialdoesnothaveamasterrecord.Howcanweprocurethat?
Theremaybeinstanceswhenamaterialdoesnothaveamasterrecord.Youcanperformdifferentfunctionsindifferent
situationstoprocurethemasterrecord.Forexample:
Youcancreateamaterialmasterrecordifthereisnomaterialmasterrecordforaparticularmaterial.
Youcanextendthematerialmasterrecordifthematerialmasterrecordexistsforaparticularmaterialbuttheuser
departmentdoesnothavethemasterdata.
Youcanalsoextendthematerialmasterrecordifthematerialmasterrecordexistsforaparticularmaterialandtheuser
departmenthasthemasterdatabutithasbeenenteredinadifferentorganizationallevel.
25.Statetheimportanceofclassificationdata.
Classificationdataallowsyoutosearchformaterialsonthebasisofthecharacteristicvaluesenteredintotheclasses.This
featureisveryusefulwhenthecustomerwantstosearchforaparticularvendorandparticularbatches.
26.WhatisanABCindicator?
AnABCindicatorisanindicatorassignedbytheABCanalysisprocedure.AnABCindicatorprovidesdetailsofthe
consumptionvalueofthematerialinvolvedintheABCanalysis.TheABCanalysisisperformedbymultiplyingthecurrent
priceofthematerialsbytheirquantity.Thedifferentconsumptionvaluesaregivenasfollows:
AmaterialsImportantparts,highusage/consumptionvalue
BmaterialsLessimportantparts,mediumusage/consumptionvalue
CmaterialsRelativelyunimportantparts,lowusage/consumptionvalue
27.WhatarethemainmasterfilesusedinMM?
ThefollowingarethemainmasterfilesusedinMM:
Materialmasterfile
Inventorymasterfile
Vendormasterfile
28.Givesomeexampleofmasterdatainmaterialmanagement(MM).
Materialmaster,materialmastergeneraldata(MARA),taxClassificationmaterial(MLAN),inforecords,sourcelist,and
vendormasterareexamplesofmasterdatainMM.
29.Howisthevendorcreated?
YoucancreateavendorbyusingthetransactioncodeXK01andperformingthefollowingsteps:
Addthevendorname,companycode,purchasingorganization,accountgroup,andvendoraddress.
Addthecountry,bankkey,bankaccount,andthenameoftheaccountholder.
Savethedata.
Thiscreatesavendorrecordinthesystem.
30.Whatisvendormasterdata?
Vendormasterdatacontainsdetailsofeachvendorthatsuppliesmaterialsorservicestoanenterprise.Thevendormasterdata
isstoredinindividualvendormasterrecordsconsistingofdata,suchasthevendor'sname,thevendor'saddress,thecurrency
usedforthetransaction,paymentterms,andthecontactperson'sname(onthesalesstaff).
31.Whatarethedifferentsectionsinvendormasterdata?
Followingarethethreesectionsinvendormasterdata:
GeneraldataProvidesgeneralinformationaboutthevendorthatcanbeenteredintothesystemforcreatingvendorrecords.
Generaldatacanprovidethename,address,telephone,andfaxofthevendorthroughspecifiedsearchterms.Additional
informationcanalsobeaddedtothevendormasterrecordbytheaccountingandpurchasingdepartmentsusingthetransaction
codeXK01.
AccountingdataReferstofinancialinformationenteredatthecompanycodelevel.Thefinancialinformationincludestax
information,bankdetails,reconciliationaccount,paymentterms,paymentmethods,anddunninginformation.Youcanenter
thisfinancialdatausingthetransactioncodeFK01.
PurchasingdataReferstodataenteredwhilecreatingavendoratthepurchasingorganizationlevel.Differentpurchasing
organizationshavedifferentpurchasingdata.Thepurchasingdataincludespartnerfunctions,purchasingdefaultfields,and
invoiceverificationindicators.YoucanenterthisdatausingthetransactioncodeMK01.
32.Whatarethedifferentfieldsinvendormasterdata?
Thedifferentfieldsinvendormasterdataareasfollows:
Thenameandaddressofthevendor
Thecurrencyinwhichthetransactionwillbedone
Thetermsandconditionsofpayment
Thenamesofimportantcontactpersons
Theaccountinginformation,suchasthereconciliationaccountinthegeneralledger
33.Howdowecreateavendornumberrange?
Whenyoucreateanumberrange,itisimportanttorememberthatvendornumbers,suchasmaterialnumbers,canbeassigned
externallyorinternally.Youcancreatevendornumberrangesbyselectingthefollowingnavigationpath:IMG>Financial
Accounting>VendorAccounts>MasterData>PreparationsforCreatingVendorMasterData>CreateNumberRangesfor
VendorAccounts.
Forconfiguringthevendornumberrange,youshouldenterauniquenumberfortherange,whichisatwocharacterfield,and
thenspecifythelimitforthenumberrange.Thecurrentnumberfieldisusedtodefinethecurrentnumber.TheExt.field
Specifieswhetherthenumberrangeisdefinedexternallybytheuser.
34.Whatisdunningprocedure?Howcanitbeconfigured?
Sometimes,youmayneedtosendapaymentreminderoradunningnoticetoapersonoranorganizationtoremindthemof
theiroutstandingdebts.Theprocessbywhichthesystemcontrolsdunningiscalleddunningprocedure.Dunningprocedurecan
beconfiguredbyusingtheFBMPtransactioncodeorthefollowingnavigationpath:IMG>FinancialAccounting>
AccountsReceivableandAccountsPayable>BusinessTransactions>Dunning>DunningProcedure>DefiningDunning
Procedures.
35.Howdoweassignmaterialtovendors?
Selectthefollowingnavigationpathtolinkvendorstomaterials:SAPMenu>Logistics>MaterialManagement>
Purchasing>MasterData>InfoRecord>Create.Alternatively,theME11transactioncodeisusedforthispurpose.
36.WhatisthetransactioncodetoaccesstheMaterialsManagementConfigurationmenu?
TheOLMStransactioncodeisusedtoaccesstheMaterialsManagementconfigurationmenu.
37.WhatarethevarioustransactioncodestoaccesstheMMconfiguration?
ThefollowingarethevarioustransactioncodestoaccesstheMMconfiguration:
TransactionCode Description
OLMD AccessesMaterialManagementConsumptionBasedPlanning(MMCBP)
OLMB AccessesMaterialManagementInventoryManagement(MMIM)
OLME AccessesMaterialManagementPurchase(MMPUR)
TransactionCode Description
OLML AccessesMaterialManagementWarehouseManagement
OLMS Accessesthematerialmasterdata
OLMW Enablesvaluationandaccountassignment
38.WritethenamesofsomeimportantMMtables
ThefollowingtableliststheimportantMMtablenames:
TableName Purpose
EINA Usedforgeneraldataofthe(purchasing)informationrecord
MARC Usedinplantdataformaterials
EINE Usedforpurchasingorganization
MAST Usedforbillsofmaterial(BOM)link
MKPF Usedforheadermaterialdocument
MAKT Usedformaterialdescription
MARD Usedinstoragelocationdataformaterial
MARA Usedforgeneralmaterialsdata
MBEW Usedformaterialvaluation
39.Whatarepurchasinginformationrecords?
Purchasinginformationrecords,alsoknownasinforecords,containinformationrelatedtothematerialandthevendorwhois
supplyingthematerial.Theyalsocontaindetailsaboutthematerial,suchasthecurrentprice.
40.Whatarethecategoriesofpurchasinginformationrecords?
Thecategoriesofpurchasinginformationrecordsareasfollows:
StandardContainsinformationforthestandardpurchaseorder.Inthistypeofpurchasinginforecord,youcancreateinfo
recordsformaterialsandservicesthatdonothavemasterrecords.
SubcontractingContainsorderinginformationforsubcontractorders.
PipelineContainsinformationoncommoditiesthataresentthroughapipeline,suchasoilorwater.
ConsignmentContainsinformationonmaterialsthatareinthevendor'spossessionandarekeptbythevendoratsomeother
premisesathisowncost.
41.Whataretheprerequisitesforcreatingapurchasinginforecord?
Theprerequisitesforcreatingapurchasinginforecordareasfollows:
MaterialnumberBeforecreatingapurchasinginforecord,thematerialnumberofthematerialmasterrecordshouldbe
known.
Manufacturerpartnumber(MPN)materialnumberBeforeorderingamaterialthathasanMPN ,youmustknowitsMPN
materialnumber.
VendornumberYoushouldalsoknowthenumberonthevendormasterrecord.
OrganizationallevelIfthepurchasinginforecordisforaparticularpurchasingorganizationorplant,thenthecodespecific
tothatpurchasingorganizationorplantisrequired.
42.Howcanwecreateapurchasinginformationrecord?
YoucancreateapurchasinginformationrecordeithermanuallyorautomaticallybysettingtheInfoUpdateindicatorwhen
maintainingaquotation,apurchaseorder,oranagreement.
43.Canapurchasinginforecordbecreatedwithoutamaterialnumber?
Yes,youcancreateapurchasinginforecordwithoutamaterialnumber.Ifthematerialdoesnothaveamaterialnumber,you
willneedthefollowinginformationtocreatethepurchasinginforecord:
Materialshorttext
Orderunit
Materialgroup
Shorttermkey
44.Howcanwecreateaninformationrecordbasedonthematerialmaster?
First,youneedtocreatetheinforecordbyselectingSAPMenu>MasterData>InfoRecord>Create.Enterdetailssuchas
vendornumber,materialnumber,purchaseorganization,orplantnumber.Thenenterthenumberoftheinformationrecord(in
caseofexternalassignments).Next,enterthegeneraldataforvendors,orderedquantity,originofdata,supplyinginformation,
andcustomstariffnumber.Thenentertheplanneddeliverytime,purchasinggroups,andstandardpurchasingquantity.Check
thecontroldataandtakethedefaultvalueoftolerancedataandthepurchasinggroupfromthematerialmasterrecord.Finally,
enterthenetpriceandthenselectGoTo>Textstodisplaythetextoverview.IfthePOtextisalreadydefined,itappearsin
thematerialmasterrecord;otherwise,itneedstobeentered.Afteralltheseentrieshavebeenmade,therecordissaved.
45.Whatisthedocumentmanagementsystem(DMS)inSAP?
TheDMSinSAPhelpsyoustoreexternaldocuments,suchaspicturesofthegoodsormaterial.ByusingtheDMS,youcanset
themaximumsizeofthepicturethatcanbeuploadedinadocument.TheDMShelpstolinktheseexternaldocumentswiththe
appropriateSAPobjects.
4.ProcurementandPurchasinginsapmm
1. WhatarethespecialstocksusedinMM?
Specialstocksarestocksthataremanagedseparatelyregardlessofwhethertheybelongtoyourcompany.Thecompanymanages
amaterialbyusingadatarecord,whichcontainsalltherequiredinformation.Thedifferenttypesofspecialstocksareas
follows:
Salesorderstock
Returnablepackagingwithcustomer
Consignmentstockatcustomer
Vendorconsignmentstock
Returnabletransportpackaging
Subcontracting
Pipeline
2.Whatarethedifferencesbetweencompanyownedspecialstocksandexternallyownedspecialstocks?
Thedifferencesbetweencompanyownedspecialstocksandexternallyownedspecialstocksarelistedinthe
followingtable:
CompanyOwnedSpecialStocks ExternallyOwnedSpecialStocks
StocksthatbelongtothecompanybutarestoredwiththeStocksthatbelongtothewholesalerorthecustomerbut
wholesalerorthecustomerarecalledcompanyowned arestoredatthecompanyarecalledexternallyowned
specialstocks. specialstocks.
Companyownedspecialstocksaremanagedatthe Externallyownedspecialstocksaremanagedattheplace
productionlevel. wheretheyarestored.
3.Whyisnegativestockneededinanorganization?
Organizationsneednegativestockwhenamaterialisshippedtoacustomerandproductionisnotconfirmedorthereisnot
enoughstocktosatisfytherequirement.Thesystemstillallowstheissuingofthematerial,andinventoryshowsanegative
quantityofstockuntiltheproductionofthematerialisconfirmed.
4.Whatarespecialprocurementtypes?
Inanormalpurchasingsystem,thecustomerpurchasesthegoodsfromthewholesaler/retailerandthepossessionofthegoods
transfersfromthewholesaler/retailertothecustomer.Thismightnotbethecasewithspecialprocurementtypes,wherethe
transferofgoodsmaynotnecessarilybefromthewholesaler/retailertothecustomerdirectly.Forexample,youmightordera
goodforafriendofyours,who,inturn,purchasesthegoodfromthewholesaler/retailerandthentransfersthegoodtoyou.The
friendisthethirdpartyinvolvedinthisprocess.Therefore,thepossessionofthegoodindirectlytransferstothecustomer.This
typeofprocurementiscalledthespecialprocurementtype.Thespecialprocurementtypedefinestheexternalprocurementorin
houseproductionofthematerial.ThefollowinglistshowsthespecialprocurementtypesavailableintheSAPsystem:
Consignment
Subcontracting
Stocktransferusingthestocktransportorder(STO)
Productioninanotherplant
Thirdpartyprocessing
Returnabletransportpackaging
Pipelinehandling
5.Defineconsignmentstock.Whatarethemainfeaturesofconsignmentstock?
Consignment,inageneralsense,istheactofholdingtheownershipofmaterialsbutstoringthematerialsatsomeother
premisesuntilthematerialsaresoldorshiftedsomewhereelse.ThestoredmaterialsareknownasconsignmentstockintheSAP
system.Therefore,stockthatisstoredatthecustomer'spremisesbutisthesupplier'spropertyuntilthestockistransferredto
thecustomer'sstocklistiscalledtheconsignmentstock.Themainfeaturesoftheconsignmentstockareasfollows:
Youcancombinetheconsignmentstockwithyouravailablestockatanypointintime.
Youcanevaluatetheconsignmentstockinanycurrency.
Thepriceoftheconsignmentstockfluctuates.Thismeansthatyoucandeterminethepriceoftheconsignmentaccording
tothemarketconditions.
Youcanpricetheconsignmentstockinanyunit.
Youcanusedifferentfeaturesofpurchasing,suchasdiscounts,intheconsignmentstock.
Theconsignmentstockisevaluatedatapricequotedbydifferentvendors.
6.Howisthepricingofconsignmentstocksdone?Whatinformationdoesconsignmentinfo
recordcontain?
Priortoorderingamaterialfromavendororpostingagoodsreceipttotheconsignmentstock ,youneedtoobtainthe
consignmentprice.Iftheconsignmentmaterialisorderedfromseveralvendors,thesystemmaintainstheconsignmentstockof
eachvendorseparately.Thereasonthesystemmaintainstheconsignmentstockseparatelyisthatthepriceoftheconsignment
stockmayvaryfromonevendortoanother.
Theconsignmentinformation(info)recordcontainstheconsignmentpricerequiredforthepurposeofmaterialvaluation
andaccounting.
7.Howaretheconsignmentstockscreated?
Consignmentstocksarecreatedinthenormalpurchaseorder(PO)orrequisition,butthemainthingtoconsideristhatyoumust
entertheKcategoryfortheconsignmentitem.Asaresult,thegoodsissuedarepostedtoconsignmentstoresandtheinvoice
receiptisnotgenerated.
8.Definetheconsignmentcycle?
Consignmentcycleissimilartothepurchasecycle,exceptthatwhenyoucreategoodsreceiptsoftheconsignmentstocks,
onlyquantity(QTY)isupdatedandnoaccountingdocumentsarecreated.Oncethegoodsareutilized,consignmentissettled.
Thevalueoftheconsumedorissuedconsignmentstocksistakenfromtheactivepurchaseinforecord.
9.Howisconsignmentmaterialprocured?
Consignmentmaterialisprocuredthroughpurchaserequisitions,POs,andoutlineagreements.
10.HowcanweseetheconsignmentstocksinSAP?
YoucanseetheconsignmentstocksinSAPbyusingthefollowingfunctions:
Displayconsignmentinforecord
Displaythestockoverview
Displayconsignmentstocks
11.Howcanwetakeconsignmentstocksintoourownstock?
Youcantakeconsignmentstocksfromthevendorintoyourownstockbyperformingthefollowingsteps:
SelectGoodsMovement>TransferPostingtodisplaytheinitialscreen.
Entertheplantnameandthelocationwhereyouwanttostorethematerials.
SelectMovementType>TransferPosting>Consignment>ConsignmenttoOwn.
SelectContinuetodisplaythecollectiveentryscreen.
Enterthenameofthevendor,thematerials,andthequantityofmaterials.
Enterthereceivingstoragelocationifyouwanttostorethematerialsinanotherstoragelocation.
Postthedocument.Thismakesthevendorliabletochangethestoragelocationofthematerials.
12.Canwedothephysicalinventorycheckofconsignmentstocks?
Yes,youcandothephysicalinventorycheckofconsignmentstocks.Todothephysicalinventorycheck ,performthefollowing
operations:
Createaphysicalinventorydocument
Enterthephysicalinventorycount
Posttheinventorydifferences
13.Howcanyoudoinvoicingincaseofconsignmentstocks?
Youcaninvoiceinthecaseofconsignmentstocksbyperformingeitherofthefollowing:
InvoicewithPO
InvoicewithoutPO
14.Whatdoyoumeanbysubcontracting?
Subcontractingcanbedefinedastheprocessingofmaterialsbyanexternalsupplier.
15.HowissubcontractingusedincaseofMM?
Subcontractingistheprocessbywhichthevendorreceivesthematerialstoproducetheendproduct.Subcontractinginvolves
thefollowingprocedures:
Youordertheendproductbyusingthesubcontractorder.Thecomponentsthatthevendorneedstomanufacturetheend
productarementionedinthePO.
Duringtheinventorymanagementprocess,thecomponentsarepostedtothestockofmaterialprovidedtothevendor.
Later,thecomponentsaresuppliedtothevendor.
Thevendorthenprocessestheserviceanddeliversthematerialsordered.Theconsumptionofthecomponentsisposted.
If,afterpostingthegoodsreceipt,thevendornotifiesyouthatthequantityofthecomponentsactuallyconsumedis
differentthanplannedinthePO,youmustmakeanadjustment.
Thevendorthenchargesfortheservice,forwhichtheinvoiceispostedinInvoiceverification.
16.Whatinformationdoesthesubcontractinginforecordscontain?
Asubcontractinginforecordconsistsoforderinginformationrelatedtosubcontractorders.Forexample,ifyouenteredintoa
contractwithanoutsidesourcefortheassemblyofacomponent,thesubcontractinginforecordwouldcontaintheprice
specifiedbythevendorfortheassemblywork.
17.HowdowecreatesubcontractingPO?
PerformthefollowingstepstocreateasubcontractingPO:
o Enterthematerialtoorderandthecategoryoftheitemforsubcontracting(L)intheorderitem.
o PresstheEnterkeytodisplaythescreenforcomponentprocessing.
o Inthecomponentprocessingscreen,enterthecomponentsrequiredbythevendortomanufacturetheorderedmaterial(end
product).Whenenteringthecomponents,youneedtotakecareofthefollowingpoints:
o Youdonotneedtoenterthedaterequiredforthecomponents.ThesystemproposesthisdatewhenyoupresstheEnterkey.
Itiscalculatedasfollows:
Deliverydateoftheitem(planneddeliverytime)
o Ifyoudonotwishthequantityofthecomponentstobealtered,eveniftheorderquantityoftheendproductischanged,
thensettheindicatedfieldtofixedquantity.
o Ifyouwanttoallocateaparticularbatchofthecomponenttothevendorforthemanufactureoftheorderedmaterial,enter
thedesiredbatch.
o Todeterminewhetherornotthecomponentsareavailableonthedaterequired,selectComponentList>Component
Availability.
o Whenyouenterabillofmaterialasthematerialinthesubcontractorder,thecomponentsareautomaticallycreated.
o Youcanalsodeterminethecomponentsinthebillofmaterialatalaterdate(forexample,ifthebillofmaterialis
subsequentlychanged)byselectingItem>Goto>Components>NewBOMExplosion.Theexistingentryofthecomponents
isremovedandagaindeterminedinthebillofmaterial.
o SavethePO.
WhenyouprintthePO,thecomponentsareprintedperorderitem.
18.Howcanweviewthestocksprovidedtovendor?
ThestocksofmaterialprovidedtoavendorcanbeviewedbyusingtheSCStockMonitoringforVendorreport.Thereportcan
beaccessedbyselectingPurchase Order > Reporting > SC Stocks per Vendor from the menu. With this
report, the current status of the stocks, planned issues, and planned receipts can be viewed.
19.Howarecomponents(materials)providedtovendor?
Thecomponents,orratherthequantitiesofthecomponentsrequiredtomanufacturetheendproduct,areprovidedinthestock
ofmaterialtobeprovidedtothevendor.Thestockofmaterialprovidedtothevendoristhetotalvaluatedstockthatis
availableforMRP.Thetotalvaluatedstockismanagedattheplantlevel,atthesiteofthevendor.Thisstockcanbeeitheran
unrestricteduseorqualityinspectionstock.Theunrestrictedusestockreferstothevaluatedstockofamaterialthatisowned
bythecompanyanddoesnothaveanyrestrictionsonitsusage.Thequalityinspectionstockisintendedtobeusedonlyfor
qualityinspection.Thecomponentscanbeprovidedtoavendorinthefollowingways:
Postingthecomponentsfromtheunrestrictedusestock
Receivingthecomponentsfromanothervendor
20.Howarecomponentsconsumedincaseofsubcontracting?
Insubcontracting,theendproductisorderedbyusingasubcontractorder.Thematerialsorcomponentsrequiredbythevendor
tomanufacturetheendproductarementionedinthePO.Thecomponentsarepostedtothestockofthematerialprovidedto
thevendorduringinventorymanagement.Whenthecomponentsaresuppliedtothevendor,thevendormanufacturestheend
productanddeliversit.Atthispoint,thegoodsreceiptispostedwithareferencetothesubcontractorder.Thegoodsreceiptalso
containsthepostingoftheconsumptionofthecomponentsfromthestockofmaterialprovidedtothevendor.Ifthecomponents
consumedbythevendoraremoreorlessthanthatspecifiedinthePO,anadjustmentneedstobepostedtocorrectthe
consumptionofcomponents.
5.InventoryManagementinSAPMM
1. GiveanoverviewofInventorymanagementinSAPsystem?
InventorymanagementintheSAPsystemhelpsrecordandtrackstocksofmaterials.Italsoinvolvestheplanningand
documentationofallgoodsmovements..
2.WhattasksarecoveredunderInventoryManagement?
Inventorymanagementisanimportantpartofmaterialsmanagement(MM).Optimalinventorymanagementnotonlyensures
anuninterruptedsupplyofthematerialattherequiredtime,butalsopreventswastingitems.MMcoversthefollowingtasks:
Materialstockmanagement
Planning,entry,anddocumentationofgoodstransfersfromandtotheinventory
Physicalstockingofitems
3.WhatisPhysicalInventory?
Physicalinventoryisaprocessinwhichallthetransactionsrelatedtothemovementofgoodsarestoppedandthe
companyphysicallycountsinventory.Itisrequiredinfinancialaccountingrulesorforplacinganaccuratevalueonthe
inventoryfortaxpurposes.
4.Whataretheinitialconfigurationstepsforphysicalinventory?
Thestepsforpurchaseacquisitionareasfollows:
Definingthedefaultvaluesforthephysicalinventorydocument
Reportingbatchinputs
Recordingtolerancesforphysicalinventorydifferences
Inventorysamplingaswellasconfigurationofcyclecounting
5.Whatisthedifferencebetweenmanagingstockbyquantityandmanagingstockbyvalue?
Transactionsthatmakechangesinthestockresultinstockupdatesthatarerecordedinrealtime.Atanypointintimeone
canviewthestockoverview,whichrepresentsthecurrentsituationatthattime.Thatistheessenceofstockmanagementby
quantity,andcanappliedtothefollowingstocktypes:
o Locatedinthewarehouse
o Orderedbutnotyetreceived
o Locatedinthewarehouseandreservedforaparticularpurpose
o Reservedforqualityinspection
Themanagingstockbyvalueoptionreviewsthestockmaterialsqualitativelyratherthanquantitatively.ThevaluatioNof
stockisdoneeitherattheplantleveloratthelocationlevel.Updatesthatcanbedonewhenmanagingstockbyvalueareas
follows:
o Thequantityandvalueforthegoodsmovement
o Theaccountsthatareassignedforcostaccounting
o TheG/Laccountsforfinancialaccounts,withautomaticassignmentofaccounts
Thevaluationareaistheorganizationallevelatwhichthestockvalueismaintained.Itcanbeeitheratplantlevelor
storagelevel.
6.WhatarethespecialstocksinSAP?
Specialstocksaredefinedasstocksthatmustbemanagedseparatelybyacompany.Theycanbeeithercompanyownedor
externalstocks.Theycanbecategorizedasfollows:
Consignment
Subcontracting
Stocktransferusingstocktransportorder
Thirdpartyprocessing
Returnabletransportpackaging
Pipelinehandling
Salesorderstock
Projectstock
7.WithwhichmodulesinSAPistheinventorymanagementintegrated?
InventorymanagementisanimportantpartoftheSAPMMmodule.Thebusinessactivitiesofanorganizationrevolvearound
theinventoryofmaterials,whichservesastheinputforthemanufacturingprocessortheinventoryofpreparedgoodsfor
deliveryorsale.Thematerialispurchasedfromtheappropriatevendorsonthebasisofrequestsfromthematerialsrequirement
planning(MRP)module.Thedelivereditemsarerecordedasthegoodsreceiptininventorymanagement.Thematerialsarethen
stored,eitherfordeliverytothecustomerorformanufacturingprocesses.Inventorymanagementisintegratedwithother
modules,suchasfinancialaccounting(FI),salesanddistribution(SD),productionplanning(PP),projectsystem(PS),and
qualitymanagement(QM).
8.HowistheinventorymanagementintegratedwithMM?
InventorymanagementisdirectlylinkedwiththeMMmodulebecauseanymovementofgoodstoandfrominventory
happensundertheMMmodule.MRP,purchasing,andinvoiceverificationaresomeoftheMMcomponentsthatarealso
linkedwithinventorymanagement.Aftermaterialisordereditispostedasagoodsreceiptwithreferencetothepurchaseorder.
Theactualdataofthequantitiesarecheckedinthevendor'sinvoice.
9.Whataretheinitialconfigurationstepsforinventorymanagement?
Thestepsforinventorymanagementareasfollows:
Definingplantparameters
Definingsystemmessageattributes
Definingnumberassignment
Defininggoodsissue,transferposting,screenlayout
Maintainingcopyrulesforreferencedocuments
Settingupdynamicavailabilitychecks
Confirmingthenegativeitems
10.WhatisGoodsmovement?Whattypeofdocumentsiscreatedaftergoodsmovement?
Goodsmovementreferstothemovementofstock.Thismovementofstockcouldbeeitherinboundfromthevendor,outboundto
acustomer,betweendifferentplants,orevenbetweendifferentstockswithinaplant.Aftergoodsmovement,theSAPsystem
createstwotypesofdocuments:materialdocumentsandaccountingdocuments.
11.WhatarethegoodsmovementsthattakeplaceinMM?
Thegoodsmovementscanbedefinedasthephysicalorlogicalmovementsofmaterialsthatleadtoachangeinstocklevelsor
resultsinmaterialconsumption.ThegoodsmovementsarepartoftheMMpolicy.ThegoodsmovementsinSAPareasfollows:
o GoodsreceiptRepresentsthephysicalmovementofgoodsormaterialsintothecompany.Itincreasesthestockquantity.
Thegoodsreceiptcanbeofthefollowingtypes:
Goodsreceiptwithreferencetoapurchaseorder
GoodsreceiptwithreferencetoaProductionorder
Goodsreceiptwithoutreference
o GoodsissueRepresentsthephysicalmovementofgoodsormaterialouTofthecompany.Itreducesthestockquantity.The
goodsissuecanbeofthefollowingtypes:
Goodsconsumptioninthecompany
Goodsdeliverytocustomers
o StocktransferRepresentsthemovementofmaterialsfromonelocationtoanotherlocation.Thelocationscanbeeither
withinthesameplantordifferentplants.
o TransferpostingRepresentsthestocktransferthatcaneitherbephysicalorlogical.Inlogicalstocktransfers,goodsare
transferredonlyinrecords,whiletheactualstocktransferdoesnoToccur.Someexamplesofphysicalstocktransferare:
Stocktransferbetweentwostoragelocationsinaplant
Stocktransferbetweentwoplants
Transferofmaterialstocustomerconsignmentstock
Someexamplesoflogicalstocktransferare:
o Releaseofmaterialsfromstockinqualityinspection
o Transferofmaterialsfromvendorconsignmentstocktoownstock
o Batchsplitting
o Transferpostingmaterialtomaterial
12.WhatisGoodsReceipt&GoodsIssue?
Goodsreceiptistheprocessthatenablesthereceiptofmaterialfromavendororfromtheinhouseproductionprocess.
ThereareothertypesofgoodsreceiptsinSAPthatincludeinitialstockcreation.Thegoodsreceiptprocessalsoincreasesstock
duetooneofthefollowingprocesses:
o Receiptofproductionorder
o Receiptofpurchaseorder
o Initialinventoryentry
o Others
Goodsissueisaprocessinwhichthestockinthewarehouseisreducedduetoanyofthefollowingreasons:
o Shipmenttoacustomer
o Stockwithdrawalforaproductionorder
o Returnofmaterials
o Materialrequiredforsampling
o Scrappingofmaterials
13.Whyisgoodsreceiptimportanttoacompany?
Goodsreceiptindicatesareceiptorinwardmovementofstockofmaterialsorgoods.Whenanexternalvendorprovidesstockto
thecompany,thegoodsreceiptisgeneratedasapurchaseorder,andwhenthematerialisproducedinhouse,thegoodsreceiptis
generatedasaproductionorder.Agoodsreceiptisimportanttoacompanybecauseusingagoodsreceiptmovesmaterialinto
stock ,updatesthestocklevels,andtherebyindirectlyenablestheproductionprocess.
14.Howisagoodsreceiptperformed?
Thestepstoperformagoodsreceiptareasfollows:
o Entertheheaderdata.
o Selectthemovementtypeandthepurchaseordernumber.
Thedocumentispostedinthedatabase.
15.HowdoyoupostthegoodsifthePOnumberisnotknown?
Ifthepurchaseordernumberisnotknown,youmustentersearchcriteriaforthepurchaseorderintheinitialscreen.Asa
result,thelistofpurchaseordersisdisplayed.Thedesiredpurchaseorderitemscanthenbecopied.
16.Howisthevendorreturnedprocessedwithoutapurchaseorderreference?
YoufirstneedtoobservetheReturncolumnandthenselectItemDetail>MIGO_GR>GoodsReceiptforPurchase
Order.Iftheintentionistodeductthestock ,thenmovementtype161isused;otherwise,162isusedtoundothechanges.
Lastly,youmustensurethatthedocumentisareturnpurchaseorder.Thedocumentisthensaved.
Alternatively,youcanusetheM21Ntransactioncodeforthispurpose.
17.Whathappenswhenagoodsreceiptisposted?
Whilepostingagoodsreceipt,thefollowingeventsoccur:
Thematerialdocumentiscreated.
Theaccountingdocumentiscreated.
Threeprintedversionsofgoodsreceiptnotesaremodified.
Thestocklevelchanges.
18.Whatistheresultofgoodsmovement?
Thefollowingeventsareinitiatedwhengoodsmovementstakeplace:
First,amaterialsdocumentisgenerated,whichisproofofthegoodsmovements.
Accountingdocumentsaregeneratedifthemovementofgoodsrequiresachangeinthefinancialaccounts.
Thestocksofthematerialsquantitiesareupdated.
Thestockvaluesinthematerialmasterareupdated.
Financialandmaterialdocumentsareupdated.