CTS Final MM TRG Day1

SAP MM TRAINING ENDEVOUR FROM SAP COE - MM
ENDEVOUR FROM SAP COE - MM

Compiled by: Kalidas K.
Date: 01-06-2011
Venue: Pune
SAP MM
ARCHITECTURE
Part-I
2011 Cognizant Technology Solutions
All Rights Reserved; For Private Circulation Only
ENTERPRISE RESOURCE PLANNING - SAP
Conducted by : Mohammedniyas
SAP MM Basics

Pg: # 2

Importance of Materials management

Organization structure

Organizational Units in Materials Management.

Master Data in Materials Management.

Procurement cycle, Pricing Procedure ,Release Strategy in
Materials Management.

Topics of Discussion

SAP MM Basics

Pg: # 3

Material management is concerned with the planning,
identification, procuring, storage, receiving and distribution of
materials.

The aim of material management is to assure that the right
materials are in the right place, in the right quantities from
right resource's at right cost prices.

The purpose of material management is to control the flow of
materials effectively there by reducing inventory cost.

Timely delivery of the product to the customer.

Agenda

Importance of Materials Management

SAP MM Basics

Pg: # 4

Organization Structure
SAP MM Basics

Pg: # 5

The SAP R/3 procurement business process uses the following R/3
organizational elements:
Company code
Plant
Storage location
Purchasing organization
Purchasing group

Organizational Elements
SAP MM Basics

Pg: # 6

6
Company Code
A company code represents an independent
accounting unit; for example, a company within a
corporate group.
Balance sheets and Profit & Loss statements, required
by law, are created at the company code level.
COMPANY CODE
SAP MM Basics

Pg: # 7

7
Purchasing organization 2
Plant 10
Plant 1
Purchasing organization 1
Purchasing group 1
Purchasing group 2
Plant 2 Plant 3
Purchasing Organization
A Purchasing organization negotiates conditions of
purchase with vendors for one or more plants. it is legally
responsible for completing purchase contracts.
SAP MM Basics

Pg: # 8

8
Purchasing Group
A key for a buyer or group of buyers responsible for certain
purchasing activities.

Purchasing group is a separate entity which is indirectly
linked with the organizational elements.

Internally responsible for the procurement of a material or a
class of materials. It's the principal channel for a company's
dealings with its vendors.

Purchasing group in SAP is used for the reporting purpose.

Purchasing group is considered as a one of the important
parameter in the release strategy of purchasing documents.

Purchasing group also helps in setting of the authorization
SAP MM Basics

Pg: # 9

9
A plant is an organizational unit within a company.
A plant produces goods, renders services or makes
goods available for distribution.
A plant can be one of the following types of locations:
Manufacturing facility.
Warehouse distribution center.
Regional sales office.
Corporate headquarters.
Plant
SAP MM Basics

Pg: # 10

10
Storage Location
Storage locations are organizational
units that allow the differentiation of
material stocks within a plant.
Storage Location 0001
Storage Location 0002 Storage Location 0003
Storage Location 0004
SAP MM Basics

Pg: # 11

Plant & Company code - 1:1

Company code & Plant - 1: N

( Several plants can be assigned to one company
code)

Plant & Purchase organization - M:N

( Several Plants can be assigned to one Purchase
org &Vice versa)

Org Structure Relations
SAP MM Basics

Pg: # 12

Plant
Storage
Location
Purchasing
Organization/
Purchasing
Group

Organizational Units in Material Management

SAP MM Basics

Pg: # 13

Define the Plant with Proper address and it should be assigned to company Code

Maintain Storage Location

Maintain Purchasing organization

Assignments of Purchasing organization.

Following are the options available for assignments of Purchasing organization

(A) Company-specific purchasing: Assign a purchasing organization to one company
code.
(B) Plant-specific purchasing: Assign a purchasing organization to one Plant.
Sub options: One purchasing organization procures for several plants. And
Several purchasing organizations procure for one plant.
(C) Enterprise wide :One purchasing organization procures for all the company codes
of a client - that is, for all companies belonging to a corporate group

Organizational Units in Material Management

Customization steps for Organizational Units
SAP MM Basics

Pg: # 14

Assignment of Purchase organization

SAP MM Basics

Pg: # 15

Master data is vital requirement for SAP operation.
The information stored in Master Data is used to create
transactions in SAP. The system ensures that the master
data records created are unique .
Master data maintenance is one time activity.

Main Master data in MM are
Material Master
Vendor Master
Service Master
Info Records
Source list

Master Data in Material Management

SAP MM Basics

Pg: # 16

The material master file contains the data and
parameters that define each material used in an SAP
Client. The information relevant to a particular
organizational unit for a specific material is defined in a
separate view of that material.

For example, the accounting view for a material for a
particular plant where valuation takes place, would
define how that material is valuated at that plant. There
would be another accounting view for the same material
at a different plant.

Material Master

SAP MM Basics

Pg: # 17

I nventory
Quality
Sales I nformation
Production I nformation
Desc:---------------------
Product - Ad_bboot_fs

Basic Data
Work
Scheduling
Purchasing
MRP
Purchase
Order Text
Accounting
Costing
Sales
Storage
Classification
Foreign
Trade
Forecasting
Plant/Storage
Location
Stock

Views in Material Master

SAP MM Basics

Pg: # 18

18

Data that is valid for the whole company:
For example, material no., material short text, material
group, base and alternative units of measure, ...
Data that is valid within one plant:
For example, purchasing data, MRP data, forecasting
data, work scheduling data, ...
Data that is valid for one storage location:
For example, storage bin description, picking area, ...

Material Master Organizational Levels

SAP MM Basics

Pg: # 19

Material Type in Material Master

A Material Type is a definition of a group of materials
with similar attributes.

A Material Type controls:
(A) Number Range(Internal/EXTERNAL)
(B) Screen sequence
(C) Field References
(D) Price Control Indicator
(E) Procurement type
(F) User Departments
(G)Account Determination

SAP MM Basics

Pg: # 20

Configurations in Material Master

Configuration of Material Type.
Run the Transaction OMS2.

Contd
SAP MM Basics

Pg: # 21


Configuration of Material Type

For example a new Material Type Building Maintenance
needs to configure.
Select the standard material type belongs to Raw Material(ROH)and
Click on Copy, system will give you following screen.
SAP MM Basics

Pg: # 22

Configuration of Material Type.
Save the material type
SAP MM Basics

Pg: # 23


Material Number range
Run the Transaction MMNR
Click on you will find below screen
Contd
SAP MM Basics

Pg: # 24


By default, system will put the
newly configured Material type in
Group1.As,system will assign the
Number Range only as per the
Groups and not as per the Material
Types therefore an user have to
create the separate group.
Contd.
SAP MM Basics

Pg: # 25


Now click on Group and then click on Insert.
You will find below Screen
Contd....
SAP MM Basics

Pg: # 26


Material Number range.
You can check the result by clicking on Interval Display Interval
As the material is still lying in Group1 it must be pulled into newly
created Material Group(Building & Maintenance) as under:-
Select the Material Group

Double Click on Material Type(ZBUI)

Click on Element/Group

System will put the Material Type(ZBUI) under desired Group
SAP MM Basics

Pg: # 27


Now user can check the results by running the transaction
MM01

System had correctly picked the Number 2100000000.
SAP MM Basics

Pg: # 28

Vendor Master Data

The vendor master database contains information about
the vendors that supply an enterprise. This information is
stored in individual vendor master records.

A vendor master record contains
The vendors name and address.
The currency used for ordering from the vendor
Terms of payment

Vendor master record is maintained by both Accounting
and Purchasing
SAP MM Basics

Pg: # 29

Vendor Master Data levels

Purchasing organization
data
Purchasing data
Partner roles
Company code data
Account management
Payment transactions
Correspondence
Withholding tax
General data
Address, communication,
control data, bank details
Euro
check
Vendor master Vendor master
record record
SAP MM Basics

Pg: # 30

Configurations in vendor Master

Vendor Account Group acts like a controlling
Parameter in Vendor Master. It Determines:-
The type of number range (Internal/External)
Whether the vendor is a one-time vendor?
Which fields appear on the screen?

SAP MM Basics

Pg: # 31


Configuration of Vendor Account Group
Run the Transaction OBD3.
Click on copy you
will find below screen.
Change the account
Group and Name and
save the results.
SAP MM Basics

Pg: # 32


Configuration of Vendor Number range
Run the Transaction XKN1.

Now click on you will find below screen
Contd
Now click on
Interval
SAP MM Basics

Pg: # 33


Configuration of Vendor Number range.
Now enter and save. In the below screen you will find the Number
Range is configured.
SAP MM Basics

Pg: # 34


Assignment of Number range to Vendor Account Group.

Customization Path:- IMG->Financial Accounting->Vendor
Accounts->Master Data->Preparations for Creating Vendor
Master Data->Assign Number Ranges to Vendor Account
Group
As shown in above screen assign the No. belongs to newly
created Number Range to ZVEN Account Group. Save the
results
SAP MM Basics

Pg: # 35

Now user can check the results by running the transaction XK01.


System had correctly picked the Number 0000031001.
User can also check the result in XKN1.
System will give you
current Number
automatically.
SAP MM Basics

Pg: # 36

The information linking with a specific material that is
purchased from a specific vendor is called a Purchasing Info
Record.

This data is proposed into purchasing order when they are
being created. They can be created manually or
automatically.

The Info Records provide the following information

Which vendors supply a certain material?

Which materials does a certain vendor supply?

Purchasing Info Records

SAP MM Basics

Pg: # 37

37

Purchasing organization / plant data
Control (delivery time, minimum quantity ...)
Prices & conditions (gross price, discount, freight ...)
Statistics (Price history, PO statistics ...)
Texts (purchase order text ...)
Purchasing organization data
Control (delivery time, minimum quantity ...)
Prices & conditions (gross price, discount, freight ...)
Statistics (Price history, PO statistics ...)
Texts (purchase order text ...)
General data
Vendor data (reminder data, vendors material no.)
Origin data
Order unit (conversion...)
Internal info record memo
A dministrative data

Purchasing Purchasing
info record info record
+
Structure of Pur. Info Records
SAP MM Basics

Pg: # 38


Four categories of Purchasing Information Records can
be created.
Standard:- Information Records for Standard Purchase Order.

Pipeline:- Information on Vendor Material that is supplied through a
pipeline, cables, or Pipes, such as water or oil.

Consignment:- Information on material that a vendor owns and
stores at the plant of the Purchaser.

Subcontracting:- Information for subcontract orders.
SAP MM Basics

Pg: # 39


Run The Transaction ME11
SAP MM Basics

Pg: # 40


SAP MM Basics

Pg: # 41

The Service Master Record is the document that contains the basic
information of Service, similar to Material Master Records.

Service Master

SAP MM Basics

Pg: # 42

Thank you !

Question & Answers

CTS Final MM TRG Day1

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

CTS Final MM TRG Day1

Transféré par

Droits d'auteur :

Formats disponibles

SAP MM TRAINING ENDEVOUR FROM SAP COE - MM

ENDEVOUR FROM SAP COE - MM

Vous aimerez peut-être aussi