HSIL LTD

SAP - MM

What is SAP ?
The name SAP is acronym for Systems, Applications
and Products in Data Processing.

SAP runs on a fourth generation programming language

called Advance Business Application Programming
(ABAP). It has many of the features of other modern
programming languages such as the familiar C, Visual
Basic, and Power Builder.

What is SAP ?
What is SAP R/3?
It is defined as 3 Tier Architecture
Presentation Layer
Application Layer
Database Layer
The application servers communicate with the presentation
components, the database, and also with each other, using the
message server. All the data are stored in a centralized server. This
server is called database server.

Network

SAP
Application

User
User

SAP
SAP
Database

SAP ERP

SAP is an enterprise resource planning (ERP) software product capable of

integrating multiple business applications, with each application representing a
specific business area. These applications update and process transactions in
real time mode. It has the ability to be configured to meet the needs of the
business.
SAP are categorized into 3 core functional areas:
Logistics
Sales and Distribution (SD)
Material Management (MM)
Warehouse Management (WM)
Production Planning (PP)
General Logistics (LO)
Quality Management (QM)
Financial
Financial Accounting (FI)
Controlling (CO)
Enterprise Controlling (EC)
Investment Management (IM)
Treasury (TR)
Human Resources
Personnel Administration (PA)
Personnel Development (PD)

What is SAP ?
Master Data:
Master data is data that remains unchanged
over a period of time. It contains information that
is always needed in the same way.
Transaction data:
Data relating to the day-to-day transactions.

Log on and off

Logging on to SAP R/3 requires four pieces of information:

Client
User ID
Password
Language

To start, double click on the SAP icon

Logon to SAP
Client indicates the logical area to
which the user is given access privileges

Language field requires

two characters: default is English
Multiple logons are
tracked

Log Off
Follow menu path System Log off
Log off confirmation:
Click Yes button to log off
Click No button to stay logged on to SAP

Log Off Menu Path

Log Off Confirmation

Screen Basics

Main Screen
Menu Bar
Status Bar
Standard Navigation Buttons

Main screen

Title Bar
Menu Bar

Tool Bar
Button Bar

Status Bar
Message Bar

Menu bar

Two menus are available on every screen:

System
Help
Other menus depend on the part of the system you are in

Status bar

The status bar in the lower right of the screen tells you:
Server/Session/Client
Insert/Overtype Indicator
Time

To expand the system status, select

Standard Navigation Buttons

Enter Button

Save Button Back Button

Find Next
Find Button Button

Cancel Button

Help Button

Create new
session
Exit Button
Button
Page up and
page down buttons

How is SAP Like Other Windows Programs?

There are many ways to do the same thing
In most cases, the keyboard and mouse function the same way
Multiple sessions of SAP can be used and managed just like multiple
windows
Same functionality used to control windows
Minimize, Maximize, Cancel
Copy and paste feature available in SAP

Using Matchcodes/Search Helps

Matchcodes are a SAP specific search method you can use to find information

Several different search criteria are possible

To access a matchcode, press F4

New matchcodes can be created by selecting the file folder tabs at the top of
the matchcode window

To enter a multiple selection of values for any one matchcode, position your
cursor in that field, click

and enter your selections

To close the matchcode window, click

Transaction Codes
Transaction codes are another way to access SAP transactions
A transaction code is an alphanumeric shortcut of at least four
characters, which can be used instead of following a menu path
Screens in SAP have an associated transaction code
To display the transaction code of a screen follow the menu path
System Status
Or look at the status bar for the transaction code

Error Messages
The system provides error messages when something is wrong
Error messages appear at the bottom of the screen
Some errors must be corrected, others must only be acknowledged by
pressing enter
Messages starting with:

are Critical messages

and

are Information messages

are Question messages

are Warning messages

are Error messages

System Information Messages

The system displays information or error messages in the message field at the
bottom of the screen
Use the Help button, the F1 key, or double click on the message to find more
information about the message

Using Multiple Sessions

Three ways to move between sessions:
Select the window
Alt + tab
Select session in the Windows task bar
Three ways to end a session:
Menu path: System End Session
Click on the Cancel button in the upper right
Double click on the SAP icon in the upper left

Enterprise Structure
Company
Company
HSIL
HSIL
Sales
Sales
Organization
Organization
HSIL-1000
HSIL-1000
Company
Company Code
Code
HSIL-1000
HSIL-1000

Sales
Sales group
group
HSIL
HSIL Defined
Defined States
States
as
as Sales
Sales Groups
Groups

Plants
Plants
Storage
Storage
Location
Location

Purchasing
Purchasing
Organization
Organization
HSIL-1000
HSIL-1000

Purchasing
Purchasing
group
group

Plant
Plant describe the place where the production activities are performed or
goods and services are provided.
It is attached to the company code
Manufacturing: 1101 (CD-1, Bahadurgarh), 1102 (CD-2, Bibinagar), 1111 (CPD, Bhiwadi)
Trading Divisions: 1201 (BTD), 1202 (BBNTD), 1203 (TTD)
Sales Depots:
Logical Sales Depots: 1301 (Bahadurgarh Depot), 1302 (Bibinagar Depot) 1300 (Tikri Depot)
Regular Sales Depots:1303 to 1328
Head offices

Storage Location
It represents the physical area within a plant where the materials are stored.
It is attached to a plant.
Manufacturing Plants
Raw Material
Fuels
Semi finished
Central Stores
SQC
FG Warehouse
Trading Divisions & Sales Depots
Depot Stores
Services Division

Purchase Organization
It is responsible to procure material and services, negotiation of price with vendor.
It can be
Company specific - assigned to company code
Plant specific assigned to plant

Purchase group
Represents buyer or group of buyers responsible for specific purchasing activities.
It represents buyer
It is used for reporting
Plant & Product Specific

Material Type
Material type is the important identification for material master.
Different fields and screens are controlled with respect to material type

Data in SAP
There are two important types of data in SAP
Master Data
Master data is the backbone for each transaction.
Without master data transactions can not be performed.
E.g.
Material master
Vendor master
Purchasing info record

Transaction data
Transaction data are created when performing a transaction.
Transaction data are created with the input from master data.
e.g.

Purchase requisition
Purchase order
Goods receipt
Invoice verification

MM Specific Master data

Material Master
Vendor Master
Info record
MRP Data

Material Master views

Material master contains entire information about the material related
all the departments of an organization.
Information related to different departments is stored through different
views of material master.
Views for material master are
Basic data
Classification
Sales views
Purchasing
MRP views
Work scheduling
Storage locations
Warehouse data
Quality Management data
Accounting data
Costing data

Views on a Material Master Record

Basic Data

Purchasing

MRP

Sales

St

A
B

Stocks in plant/
storage location

Material
master record

Work
scheduling

Accounting

Quality
management

Storage

Forecasting

Warehouse
management

Classification

Vendor Master

`Vendor master contains all the information required to do business

with a vendor.
Information is shared between the accounting and purchasing
departments.

Purch.

All data is grouped into three categories:

General data
Company code data
Purchasing data

Bank

Purchase order

Order Recipient

Payee

Payment

Vendor

Invoice

Invoicing Party

Material
Purc. order

Goods Supplier
Goods receipt

Invoice

?
=
Invoice verification

Purchasing Info Record

It is created for the combination of material, vendor and
purchase organization.
General data

Texts

Vendor data
Origin data
Order unit
Control data

Prices and conditions

Delivery time
Minimum quantity
Tolerances

Gross price
Discount
Freight
Price history
Ordering
statistics
Change history

MM Module Data flow

Purchase
order

Invoice

1 Determine Requirements
Plan
Rqmts.

Invoice verification

MM

Goods receipt and

6inventory management

Order follow-up

Materials
mgmt

Purchase
order

3
4

Source
determination

Order processing

Vendor selection

MM Process
1.
2.
3.
4.
5.
6.
7.
8.

MRP run triggers the requirements or Manual Requisitions Created.

Purchase requisition is released.
Vendor is selected.
Prepare Purchase Order.
Release Purchase Order.
Follow up with vendor for supply.
Goods Receipt.
Receive Invoice and pay vendor.

What is MRP?
MRP stands for: Materials Requirements Planning.

The function of MRP is to provide material availability, that is, it is used to procure
or produce the requirement quantities on time. This process involves the
monitoring of stocks and demand, leading to the automatic creation of
procurement proposals for purchasing or production.

The main objective of MRP is to determine which material is required, the quantity
required and by when it is required.

MRP compares the requirements for end products with the current stocks and
planned manufacturing orders.

MRP then explodes the product BOMs to determine the dependent requirements
for intermediate products and purchased raw materials.

MRP can be run Daily / Weekly / Monthly, which is scheduled for automatic run. It
can also be done manually.

Purchase Requisition: PR is the request for Material and services. It is the first trigger to
the buyer to arrange for procurement.

It is generated automatically or manually.

Item category and account assignment are important in PR

or

Material Resource
Planning

Direct Entry

Purchase requisition

Determine source of supply

Release strategy

Purchase Order
Purchase Order
Purchase Order

Purchase order

Release Strategy
Release strategy helps to control further processing of the Documents.
Based on conditions, different person or department can be authorized to release in
sequence
It can be applied for PR, RFQ and for PO.
Does a Strategy Apply?
Release Conditions
Value
Purchase Group
Plant
Document Type

What can the Requisition be Released to?

Release Indicator
Released/Blocked for Ordering

Who can do what?

Release Strategy
Who is Authorised to Release?
In what Order must the
Releasing Occur?
What is the Release Indicator?
Who is Authorised to release?
Release Code
Two digit code associated with
a user ID

Purchase Order

A purchase order is a formal request to a vendor to provide certain materials or

services under specific conditions (quantity, price, delivery date, etc.)

PO is the legal document.

PO can be controlled with header level release procedure.

Item category and account assignment are important in PO like PR.

Purchase
Requisition

Purchase
Order

Goods
Receipt

Planning, Reporting, and Analysis

Invoice
Posting

Purchase Order Processing

Purchase
Purchase
Order
Order
Direct Entry
or Purchase
Requisition
Purchase Order
Purchase Order
Purchase Req.

Standard
Standard
Sub
Subcontract
contract
Consignment
Consignment
Third-party
Third-party

Stock material
Consumable material
Service

Statistics
Order History

Account assignment
(cost center, asset,
project)

Contents in Purchase Order

PO
Header

PO
Overview

Account
Assignment

Texts
PURCHASE
ORDER

Delivery
Schedules

Additional
Data

Services

Changes

Pricing
Conditions

Order
History

Scheduling agreement
It specifies
Order quantity
Price
specific period to supply
There is a delivery schedule for each scheduling agreement
Helps to reduce paper work

Results of a Goods Receipt Posting

Transaction documents are created both for materials management and finance.

G/L accounts:
Consumption account
GR/IR account
Material
document

Accounting
document
Stock quantity
Consumption statistics

Goods Receipt
Posting

Purchasing data:
Order item, Order history

Point of consumption
Cost center Order

Transfer
Order

Invoice Processing
This last step in the procurement process includes invoice verification and updating
accounts payable in the FI module.

Purchase
Requisition

Purchase
Order

Goods
Receipt

Invoice
Posting

Planning, Reporting, and Analysis

Payment will then be made later based upon the open invoices posted on the
system

Invoice Verification Environment

Invoice verification accesses data from purchasing, inventory

management, material master, and vendor master files.

G/L accounts
Purchase
Order

Assets
Purchase Order
Purchase Order

Vendor
Invoice

Goods
Receipt
Material master
Vendor master

Cost centers
Projects

Invoice
verification

Orders

Posting
Postingan
aninvoice
invoicein
inthe
theR/3
R/3System
System
updates
purchasing
and
accounting
updates purchasing and accountingdata
data

Vendor Payment

Accounts payable reads the invoice file and pays all posted invoices due.
(Payment runs can be automated to occur at specific times.)

Vendor

Financial
Accounting

1000

Bank
Payment
Payment
program
program

1000

1449

Motor Sports International

1234 Main Street
New York, NY 10181

Date _______________

Pay to: ________________________________________

________________________________________________________
_______________

Released
Invoice

_________________
12930 39040 2020 20202 10923 1449