Mann-India Technologies

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The SAP R/3 Solution

SD
Sales & Distribution

FI
Financial Accounting

MM PP SM
Service ManageManagement Materials Mgmt. Production Planning

CO
Controlling

R/3
HR
Human Resources

AM
Fixed Assets Mgmt.

EC

Integrated Solution Quality Client / Server Management PM Plant Maintenance Open Systems
QM IS

Enterprise Controlling

PS WF
Project System Workflow

Industry Solutions

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Contents
1. Material Management An Overview 2. Organizational Units in MM 3. Master Data 4. Procurement Process 5. Types of Procurement 6. Account Assignment in Purchase 7. Inventory Management 8. Material Movement 9. Goods receipt/Issue 10. Stock Transfer 11. Types of Stocks 12. Material type
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MM Overview
Recording Requirements Vendor Invoice Verification Placement of orders

Inventory Valuation

Materials Management

Follow up for orders

Stock Adjustments Material Issues

Material Receipts

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Organization Structure of MM
Company Code Chico Creek Brewing Co.

United States

Canada

Singapore

Japan

Australia

Purchasing organizations

Brewery

Tap Room

Retail

Plants

Brewing Plant Dry Inventory

Tap Room Plant Wet Inventory

Retail Plant

Storage Location

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Master Data

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Material Master structure Production Stores Sales Planning Purchase

Various departments use the material master for their day to day activities. Various departments need different data for the same material.

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Material Master Views

Engineering
St

Purchasing

Requirements planning (MRP) Stocks in plant-warehouse

Material master record

Sales and distribution Job preparation Quality management

A B

Accounting

Storage

Forecast

Warehouse management

Classification

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Vendor Master Data

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Purchase Info Record

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Procurement Process

Source Determination

Purchase Order

Goods Receipt

Invoice Processing

RFQ / Quotation

Pur. Order

Planning, Reporting & Analysis

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Purchase Order
Purchasing
Purchase Requisition
10 20 30 40

Vendor
Purchase Order
10 20 30 40

Another Plant

Request for Quotation

10 20 30 40

Master Data

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Goods Receipt

Purchase Order
10 20 30 40

Vendor Another Plant

Goods Receipt Area

Material Document

Accounting Document

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Invoice Processing

Purchase Order
10 20 30 40

Invoice Document 132451 A/c Dr 1000 165234 A/c Cr 1000

Material Document

Invoice Verification

Master Data

Payment Processing

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Posting an Invoice
Invoice relating to purchase order Post
A XX B XX

GR/R account Vendor account

Doc. No. 51000123

Vendor GR/R 100100+

Material master
Moving average price Value

Purch. order history

Goods receipts Down payments Invoices

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Types of Procurement

Procurem ent for Stocks Procurem ent for Consum ption

Procurem ent for stocks causes an increase in the stock quantities and values.Material is received and placed in storage. Procurem ent for consum ption does not cause the above. Materials are directly posted to consum ption.

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Account Assignment

A: Asset

Purchasing Document

K: Cost Centre A/c Assignment Categories F: Order

Account Assignment

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Inventory Management

Stock Transfers

Goods Receipts

Material Stocks

Physical Inventory

Goods Issues

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Integration of Inventory Management

Planning Goods Receipt / Issue updates the stocks and hence the planning situation.

Controlling Goods Issue to Prodn or Cost Centre creates a costing document creation.

Inventory Management
Production Confirmations entered in the production order leads to goods issues and / or receipts.
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Financial Accounting Goods Receipt / Issue causes a stock / consumption posting in respective accounts.

Material Movement Goods Receipts

Material Movements

Goods Issues

Transfer Postings
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Goods receipt and Issue

Material Master - Stock quantity, value and price (moving average) are updated Quality Management - Creation of an inspection lot to trigger a quality inspection. Inventory - Stock (may be quality inspection) is updated through a material document. Accounting - Stock and consumption account are updated through accounting document. Purchasing - Purchase order history and PO are updated. Controlling - Material Costs are posted into the cost object through Costing Document.
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Material Delivery

Goods Receipts and Issue

Stock Transfer
Physical Logical Quality Inspection Unrestricted Use

Storage Location 1

Storage Location 2

Plant 1

Plant 2

Unrestricted Use

Blocked Stock

Plant 1

Vendor 001

Project Stock

Unrestricted Use

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Types of Stock

Quality Inspection Stock Unrestricted Stock GR Blocked Stock Blocked Stock

Normal Stocks

Special Stocks

Consignment Stock Sales Order Stock Vendor Stock

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Material Type

Raw Materials

Operating Supplies

Semi-finished Products Finished Products

Spare Parts

Non-Valuated

Trading Goods

Others

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Control Using Material Types

Control i iews maintained for each material

are

Material Ty e

Control t t ri l numbering (Internal / ternal, ange) date control for uantities and alues in the arious aluation areas Controls the external rocurement / inhouse roduction for a material

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Thank You

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