1

Master Data for Purchasing

Contents:
Material Master Records Vendor Master Records

SAP AG 1999

(C) SAP AG

LO520

2-1

1.1

Master Data for Purchasing: Unit Objectives

At the conclusion of this unit, you will be able to:

Explain that material master records contain

default values that simplify purchasing processes

Recognize that material and vendor master

records contain important control parameters for optimized purchasing

SAP AG 1999

(C) SAP AG

LO520

2-2

1.2

Course Overview Diagram

Course Overview Master Data for Purchasing Sources of Supply 1: Info Records and Contract Sources of Supply 2: Scheduling Agreements* Source Determination

Simplified Procurement Processes Document Release (Approval) Procedure Vendor Evaluation

Purchasing

11 10 9 8

12

2 3 4

Special Topics*

7 6 5

Conclusion

Optimized Purchasing
SAP AG 1999

(C) SAP AG

LO520

2-3

1.3

Master Data for Purchasing: Business Scenario

In order to streamline your purchasing operations

and permit the use of optimization functions, you have decided to create master records for vendors with whom you frequently place orders, and for materials you use repeatedly. This also applies to materials for which you do not wish, or are not able to keep in stock, and also to simple services.

SAP AG 1999

(C) SAP AG

LO520

2-4

1.4

Purchasing Data in the Material Master Record

Purchasing data
Order unit Tolerances Reminder levels ... Purchasing group PO text ... Plant Automatic PO Source list requirement Quota arrangement usage

Info rec.
Pc. Pc.

Pur. order

Material

% %

Conditions Conditions

$ $

Optimized purchasing

SAP AG 1999

Material master records contain descriptions of all the articles and parts that an enterprise procures, manufactures or stores. To the enterprise, the material master record represents the central source of information on a specific material. It is used by all components of the SAP Logistics System. All the information necessary for the administration of a material is stored in its master record. Since different user departments of an enterprise work with a material, and each one needs to store different information relating to it, the material master record contains separate data blocks for each department. Each department thus has its own view of a material master record and is responsible for the correctness of the data within its block. From the Purchasing view, a material master record has the organizational levels client and plant. At client level, you can specify the purchase order unit, under- and over-delivery tolerances and reminder levels. The Source list requirement, Quota arrangement usage and Automatic PO allowed indicators are set at plant level.

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LO520

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1.5

Master Record for Consumable Material

Material
Material type: NLAG Basic data Purchasing Materials planning Sales/distribution

Optimized purchasing

Material
Material type: DIEN Basic data Purchasing Materials planning Sales/distribution Accounting

Optimized purchasing

SAP AG 1999

When you create a material master record, you must assign the material to a material type. The latter defines certain attributes of the material and has important control functions. The material type defines the procurement type for a material, for example. The procurement type indicates whether the material is produced in-house, procured externally, or both. Together with the plant, the material type determines the inventory management requirement for a material. That is, it determines: Whether changes in quantities are updated in the material master record Whether changes in the value of the material are also updated in the stock accounts of Financial Accounting. Furthermore, the material type determines which accounts are to be posted when a material enters or leaves the warehouse or stores. The standard material types NLAG and DIEN are available for materials that cannot be stored (kept in stock), or are not intended to be, and for simple services, as follows: NLAG: Non-stock material is material that is not stored but is used or consumed immediately. DIEN: Services are procured externally. Since they obviously cannot be stored, they are also regarded as being consumed immediately. A material master record belonging to this material type can contain purchasing data.

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LO520

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1.6

Purchasing Data in the Vendor Master Record

Purchasing data
PO currency Terms of payment Incoterms Purchasing organization

Info rec.
Pc. Pc.

Pur. order

% %

Conditions Conditions

...

$ $

Vendor
Automatic PO

...

Optimized purchasing

SAP AG 1999

Vendor master records contain information on the vendors (external suppliers) of an enterprise. From the Purchasing view, a vendor master record has the organizational levels client and purchasing organization. Control parameters for purchasing operations are defined at the purchasing organization level. Accounting data in the vendor master record is defined at the company code level. Data that applies to a purchasing organization can be maintained differently for a specific plant. Such data includes the Automatic PO allowed indicator.

(C) SAP AG

LO520

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1.7

Master Data for Purchasing: Summary

You are now able to:

Explain that material master records contain

default values that simplify purchasing processes

Recognize that material and vendor master

records contain important control parameters for optimized purchasing

SAP AG 1999

(C) SAP AG

LO520

2-8