Materials Management Overview for CR10

Ranjit Challagolla Kamakshi Kala

Agenda
Introduction Organizational entities Master Data Purchasing process Inventory Management Invoice Verification Important Tables & T codes

Q&A

Introduction to MM
The Materials Management (MM) module is aimed at managing procurement and receipt of materials & services. Materials Management also involves storage, movement, valuation & consumption of materials. The SAP Materials Management (MM) Module provides a comprehensive solution for Materials Management within the integrated supply chain. Supports other logistics functions such as plant maintenance and project management, which also require materials information. MM works as part of an on-line, real-time system for processing, maintaining and recording integrated transactions

Integrated Supply Chain

Product Flow Demand

Supplier

Purchasing

Production

Distribution

Retailing

Customer

Financial Control

Human Resources

Information Flow
.
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Organizational Elements

Organizational Elements

COMPANY CODE

Company Code

Plant

Storage Location

Purchasing Organization
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Purchasing Group

Company Code

The company code is the smallest organizational unit for which you can have an independent Accounting department within external Accounting. A company code represents an independent accounting unit, for example, a company within a corporate group (client).

Plant

A plant is an organizational logistics unit that structures the enterprise from the perspective of production, procurement, plant maintenance, and materials planning. A plant is a manufacturing facility or branch within a company.

Storage Location

The storage location is an organizational unit that allows the differentiation of material stocks within a plant. Inventory Management on a quantity basis is carried out at storage location level in the plant. Physical inventory is carried out at storage location level.

Purchasing Organization / Group

Purchasing organization

A purchasing organization is an organizational level that negotiates conditions of purchase with vendors for one or more plants. It is legally responsible for completing purchasing contracts. A purchasing group is the key for a buyer or group of buyers responsible for certain purchasing activities.

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Organizational Structure in Material Management

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Master Data

Contents:

Material Master Record

Vendor master Record Purchase Info Records Source of Supply Quota Arrangement

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Master Data
Master Data in the Procurement Process

Purchase order Header

Items 10 __________ 20 __________ 30 __________

Material master recd Purchasing info record

Vendor master recd

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Material Master Data

Basic data
Pc t

Purchasin g S&D Work schedulin g Quality managemen t Forecastin g Classificatio n

Materials planning Stocks in plant/storag loc . e Accountin g Storage

A B

Material master record

Warehouse Mgmt

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Material Master
The Material Master contains information on all the materials that a company procures or produces, stores, and sells. It is the company's central source for retrieving material-specific data. This information is stored in individual material master records The material master is used by all components in the SAP Logistics System The integration of all material data in a single database object eliminates redundant data storage

Following are the Data Retention levels of Material Master

Client Company Code Plant Storage Location Sales Organization Warehouse Number Storage type

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Material Master Organizational Levels

General data General data Material number Description Units of measure

Client

Plant

Plant-specific data Planning data Manufacturing data Purchasing data Valuation data

Storage Location locationspecific data data specific Storage Location Stock quantities Stock quantities

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Master Data: Vendor Master

The vendor master includes all data necessary for processing business transactions and corresponding with vendors. Information is shared between the accounting and purchasing departments. Data is grouped into three categories.

General data
Accounting data Purchasing data

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Data in the Vendor Master

Client

Maintenance Level Purchase Organization Mandatory maintenance at the

Purchasing Organization Level
Optional Maintenance at the Plant Level, the Vendor Sub-Range Level or a combination of the two

Company Code

General Data Address Phone and Fax Number Control Data

Purchasing Data Terms of Payment Contact Person Minimum Order Value

Account Data Payment Terms Payment Method Accounting Clerk

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Partner Functions (Partner Roles)

Ordering Address
OA

Invoice Presented By PI

Vendor
GS

VN

AZ Payment Recipient
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Goods Supplier

Purchasing Info Records

Info record 5300000816

Vendor: 1234 A21 3000 Material: PurchOrg :

Screw A21

Conditions
Price/UoM 6 UNI / kg Freight 2% Discount 4% Last purchase order 4500006398

Vendor 1234

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Data in Purchasing Info Record

Price Validity Scales Conditions General Pur Org Texts Data Data Vendor Data Control Data Origin Data Price Validity Quotation Order Unit Purchase Information Records

Price History Statistics Change History

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Source List
Introduction:

Source list specifies the possible sources of supply for a material over a given period of time. It shows the time period in which a material may be ordered from a given vendor or under a certain longterm purchase agreement. Source list is used in the administration of sources of supply. Source list can be created manually or generated automatically.

Source list you can be copied from one plant to another plant

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Sources of Supply

Source List?
Material

Vendor NATIONAL

----- ------ ----------- - ----- -------- ------- ---------

Vendor AMERICAN
Outline Agreement?

Info Material Record? Quota Arrangement?

Vendor 001
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Vendor 002

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Procurement Environment

1. Requirements
Purchase Order

8.

Payment

Determination

2.

Vendor invoice

Source Determination RUHR TRUCKING

7.

Invoice Verification

3. Vendor

Selection

6.

Goods Receipt and Inventory Management

5. Order Follow-up
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4. Order Processing

Purchase Requisition
Introduction Purchase requisition is a request or instruction to Purchasing to procure a certain quantity of a material or a service so that it is available at a certain point in time. Types of Purchase Requisitions: Standard Subcontracting Consignment Stock transfer External service

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Processing Purchase Requisitions

MRP

Purchase Requisition Release Procedure Identify Supplier (Automatically) Allocate and Process Requisition Purchase Order
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Manual Creation

Planned Order

RFQ

Release Order

Processing RFQs

Purchase Requisition Reference RFQ Outline Agreement

Create

Vendor: National

RFQ

Vendor: 1023
Vendor: A
(One Time Vendor)

Bid Invitation # Evaluate Quotations

Rejection Letters
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Quotations

Purchase Order
Contract

Purchase Order A purchase Order is a formal request to a Vendor to supply the goods or Services with the conditions stated in the Purchase Order. Sending a PO to a supplier constitutes a legal offer to buy products or services Subsequent transactions like Goods Receipt and Invoice Verifications are usually carried out on the basis of Purchase Order.

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Purchase Order

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Goods Movements

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Goods Movement

Ad hoc. Goods Receipt

Delivery
Inventory

Production
Inventory

Transfer Posting

Goods Issue
Consumption Samples

Goods Issue
Sales Order
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Goods Receipt

Old / External System Other

Purchase Order

Production Order

Without Reference

Goods Receipt

Without Reference

Inventory Management

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Results of a Goods Receipt Posting

G/L Accounts:

Accounting Document
Stock Account Consumption Account GR/IR Account
Goods Receipt Posting

Stock Quantity Consumption Statistics

Material Document

Point of Consumption Cost center Order

Goods Receipt Slip

Purchasing Data: Order item Order history

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Invoice Verification

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Invoice Verification - Introduction

An invoice can be posted with reference to a purchase order, a goods receipt, or a vendor. The posting of an invoice results in the creation of an invoice document which has an accounting view. Upon the posting of the invoice, the document appears as an open item on the vendor account

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Documents in Materials Management

Purchasing

Goods Receipt

Invoice Verification

Save Purchase Order

Order Document Vendor Delivery Date Conditions Materials Quantities Prices

Post Goods Receipt

GR Document Delivery date Materials Quantity Values Account Postings

Post Invoice
IR Document

Vendor Quantity Values Account Postings

Materials Management

Accounting

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Invoice Processing
The Procurement Process
Purchase Requisition for Goods/ Services
Purchase Requisition
10 20 30

Purchase Order
Purchase Order
10 20 30

Goods Receipt

Invoice Processing
Vendor invoice

Planning, Reporting, and Analysis

Invoice verification: Matches the vendors invoice to the purchase order and the goods received (3rd part of 3-way match). Matches price, and quantity.

Updates the purchase order and its history.

Updates accounting information.

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Vendor Payment

Vendor

Bank

Financial Accounting

1000

Payment program

1000

Motor Sports International

Released invoice
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Important Tables in MM

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Important Tables in MMCont

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Important Tables in MMCont

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Important Tables in MMCont

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Important Tables in MMCont

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Important Tables in MMCont

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Important Tcodes

MM01 MM02 MM50 MMPV MM06 MM17 MM71 MM72 MK01 MK02 MK05 MK06 XK01 XK02 XK05 XK06 XK99 ME11 ME12 ME15 MEMASSIN

Material Master Create Material Master Change Material Master Extend Material Views Close Period For Materials Flag For Deletion Material Mass Maintenance Material Archive/Delete Material Display Archive Vendor Master Create Vendor Purchasing Change Vendor Purchasing Vendor Block Purchasing Flag for Deletion Purchasing Create Vendor Central Change Vendor Central Vendor Block Central Flag for Deletion Central Mass Maintenance Vendor Record Info Record Create Info Record Change Info Record Flag for Deletion Info Record Mass Maintenance Info Record

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Important Tcodes

ME01 ME0M ME05 ME06 ME07 MEQ1 MEQM MEQ6 MEQ8 MEQ7 ME51N ME52N MEMASSRQ ME56 ME57 ME41 ME42 ME9A ME47 ME49

Source List Maintain Source List Maintain Source List By Material Generate Source List Analyze Source List Reorganise Source List Quota Arrangement Maintain Quota Arrangement Maintain Quota Arrangement By Material Analyze Quota Arrangement Monitor Quota Arrangement Delete Quota Arrangement Purchase Requisition Create Requistion Change Requistion Mass Maintenance Requisition Assign Source of Supply Assign and Process RFQ Create Request For Quotation Change Request For Quotation Print RFQ Maintain Quotation Price Comparison

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Important Tcodes

ME31L ME32L ME9L ME38 ME9E ME58 ME59N ME21N ME22N ME9F MEMASSPO ME29N ME28 MIGO MB1A MBST MB1B MIRO MRBR MR8M

Schedule Agreement Create Scheduling Agreement Change Scheduling Agreement Print Scheduling Agreement Maintain Delivery Schedule Print Delivery Schedule Purchase Order Create PO via Assignment List Create PO Automatic from Req Create PO for Vendor Change Purchase Order Print Purchase Order Mass Maintenance PO Release PO Individual Collective Release PO Inventory Management Goods Receipt for PO Goods Issues Cancel / Reverse Goods Movement Transfer Postings (Stock and Status) Invoice Verification Enter Invoice & Maintenance Release Blocked Invoices Cancel Invoice

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Q&A

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