SAP MM/WM Configuration Pack Enterprise Structure

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INDEX
Over-view:-..........................................................................................................................4 Getting into the Configuration area of SAP.......................................................................13 Enterprise structure ...........................................................................................................16 Define valuation level....................................................................................................18 Define Plant...................................................................................................................20 Maintain plant details and Factory calendar in Plant.....................................................23 Define Location.............................................................................................................25 Maintain Storage Location.............................................................................................27 Maintain Purchase organization ....................................................................................31 Assign Plant to company...............................................................................................33 Assign purchase organization to the company code......................................................34 Assign purchase organization to plant ..........................................................................35 Material Master .................................................................................................................36 Assign field to field selection groups.............................................................................37 Define plant specific field and screen selection.............................................................41 Define material type.......................................................................................................42 Define Number range for each material type.................................................................46 Define industry sector ...................................................................................................48 Maintain user specific settings.......................................................................................49 Set material block for goods movement........................................................................52 Define storage location MRP per plant..........................................................................54

It gives me a great thrill to present before you the SAP MM/WM configuration pack. All this would not have been possible without your best wishes . We thank you from the bottom of our heart for giving us a chance to serve you . For imposing this faith in us we want to ensure that we provide you with the most competent, professional and step by step configuration in SAP MM/WM which will help you reduce your learning curve significantly and help you execute projects with more confidence and style. We have tried our best to structure it in a manner which is conducive to focused learning and we would love to hear back from you and we will do our very best to ensure that you achieve all your goals in SAP. Happy reading and wish you the very best in your SAP career. If any of you dear readers would like to receive a special gift from me, send me your comments on my book: MY EMAIL ADDRESS IS: heymm@sap-topjobs.com

Over-view:MM Module is the one of the most important logistics modules in SAP. MM module covers the following basic functions • Planning • Procurement • Inventory Management Planning: The following are the two types of planning in MM module. • Consumption Based Planning • Material Requirement Planning Consumption Based Planning is based on past consumption pattern. In this type of planning requirement is triggered by the stock level and NOT by any planned independent requirement or dependant requirements. Material Requirement Planning is the detailed planning based on requirements and stock levels. Procurement: Procurement activities involves everything from the stage of identifying vendors up to making payments to the respective vendor.

The following are the important procurement functions: • Identify the vendor • Negotiate the terms and conditions • Release the purchase order • Follow up for supplies • Ensure right quantity and quality materials are received at right time • Ensure payment to the vendor at right time as per the agreement terms. Procurement Proposals: As a result of planning, procurement proposals are created for the net requirement quantities either in terms of planned order or as purchase requisitions. If it is a planned order, it has to be converted to the purchase requisition. This is an important function between planner and the procurement person. If purchase requisitions are directly generated, it has to be converted to purchase order. Purchasing: Purchasing is the process of releasing the document to the identified vendor authorizing him to supply the materials at a negotiated price. Three important purchasing methods are a. Purchase Order

Scheduling Agreement a. Purchase Order: . Contracts: . When performing the inventory management transactions system performs the following actions instantly • • • • Material document is generated FI document is generated Controlling document is generated Inventory is adjusted . b.Contracts of quantity based or rate based can be issued to the vendor authorizing him to supply till reaching certain quantities or certain value of supply is reached. Scheduling Agreement: Scheduling agreement is similar to PO. Each scheduling agreement will have a delivery schedule. Inventory Management: Entire stocks and material movements are dealt in inventory management.It is the process of issuing PO to the vendor requesting him to supply according to the requirements as a one time or as per the delivery schedule. c. Every contract will have a release order. Each material movement is associated with a movement type number.b. If scheduling agreement is available with a vendor. It will specify the quantity. rate but the schedule of delivery will be informed through the delivery schedule to the vendor. Movement type is responsible to determine the right GL account for FI postings. MRP can automatically create the delivery schedule instead of PR or Planned order during MRP run. Contracts c.

Inventory Management is tightly integrated with MRP and MRP data. .

Following are the important master data in MM module.Master Data in MM: As in every module. • Material Master (across all modules) • Vendor Master • Purchase Info record • Quota arrangement (MM and PP modules) • Source List Integration of MM with other Modules: Materials Management and its component inventory management is directly linked with MRP. Master data plays a major role in MM module as well. MRP takes the inventory into account and also the expected receipt and issues during MRP run which is the vital data for successful MRP. MM with PP • Staging of components for production order • Receipt of finished products into the warehouse MM with QM • A movement type determines whether the material is subject to QM or not. purchasing and invoicing for vendor supplies. .

MM with PM Goods movements are performed with respect to • Equipment BOM • Maintenance order • With serial number management.• Goods posted to QM stock if it is subjected to QM MM with SD • Availability check can be carried out on creating sales order • As soon as the delivery against the sales order is created. having understood the over view of MM module. GL accounts are determined through movement type and valuation class information. let us try to look at what is there in store with this MM pack for you. • Entire accounting entries are posted instantaneously OK friends. that quantity is marked for delivery and deducted from stock when performing post goods issue (PGI) for delivery. serial number can be entered with every serial number MM with FI • When posting the material movements. • Special sales order stocks can be maintained. .

Configuration . Configuration .Enterprise Structure: Define Plant Define Storage Location Assign Plant to a company Define Purchase Organization Purchase organization assignment Defining material master field selection Material Master Plant specific field selection Define Material Type Define number range for material type Define Industry sector for material master. it is divided in to five topics as mentioned below.Planning:Complete configuration of Planning Consumption based planning Configuration .For ease of learning and better understanding of MM module.Master Data and PR: Define system message attributes Defining purchase value key Material Requirement . user manual and power point presentation is provided. • Enterprise structure • Planning • Master Data and PR • Purchasing • Inventory Management To the each one of the above topic. complete configuration.

Define payment terms Define Inco terms Define Account Group (Field selection for vendor master) Define number range for account group Define purchasing groups Define copying rules Define Document types Configure Release strategy for PR Configuration – Purchasing: Define Document type Define Number Range Define tolerance limit for price variance Release procedure for Purchase orders Configure stock transport orders Define Access Sequence Define Condition Type Define calculation schema Define Schema determination Account Determination Configuration – Inventory Management: Define Plant Parameters Define Field selection for goods movements Movement type setting Configure automatic storage location creation Define screen layout Define availability check for movement types Configure negative stock Define output determination Configure stock determination Configure split valuation .

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SAP configuration is to maintain the backend settings according to the business requirements. Project view or IMG – used to access configuration. Click . 1. Easy access . Type SPRO in the SAP main screen dialog box. INSTRUCTIONS 1. Follow the steps explained here to get into the configuration area in SAP. 2.used to access daily transactions 2.Getting into the Configuration area of SAP BACKGROUND There are two types of access to the user in SAP. for SAP Easy access is to perform the master data maintenance and perform transaction. Access to each transaction is controlled by authorization.

Click on .3.

follow the above steps.4. When the menu path is mentioned as “IMG”. . Click appropriate node to look at more details.

. Logistics area deals with  Plant  Storage location  Sales organization  Sales Distribution channel  Sales Division etc. Financial area deals with  company code  controlling area  Currency and more. Organizational details are broadly divided into the two areas like financial area and logistics area.Enterprise structure Enter price structure describes the entire organization details.

Organ .

This is a client level setting.  Plant level  Company code level It is recommended to keep at plant level. Click .General → Define valuation level 1. Stocks can be valuated at following two levels in SAP. INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure → Definition → Logistics .Define valuation level BACKGROUND This configuration setting enables to define at which level the stock are to be valuated in SAP.

Click Save . Select the radio button 3.2.

If the valuation level is the plant. check plant 1. Each manufacturing facility or branch of a company is defined as a plant in SAP. It will be defined by the FI. Storage locations are created under each plant. Plant is assigned to the company code. Note: . Click .It is common practice to copy plan from the existing defined plant. delete. INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure → Definition → Logistics .Define Plant BACKGROUND This configuration setting enables to define the plant.General → Define copy. the stocks are valuated at plant level.

Click to return to main menu. Enter from plant as plant 0001 to copy from SAP defined 6.g.2. Click 3. IND6 7. Click 4. Click 5. Enter To Plant – E. . Click 8.

Definition of plant and assignment of plant to the company codes along with relevant GL accounts is done by the FI team. . However the creation of plant is demonstrated.Note: .

Maintain plant details and Factory calendar in Plant BACKGROUND When copying the plant. contact details of the plant. 6. Address of the plant and other details attached to the plant can be changed. check plant 1.General → Define copy. Maintain the entire address. delete. Select plant IND6 by clicking the grey box in the left side 3. Factory calendar must be attached to the plant Below screen shows the details of plant settings. Click 4. Double click 2. INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure → Definition → Logistics . the entire details will be copied from the source plant. . Click 5.

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.Maintain the address of the location in the subsequent screen. Click Value e. INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure → Definition → Logistics . Click 3.g.Define Location BACKGROUND This configuration setting enables to define the location. PROD Production location Note: . Location indicates where the materials are stored inside the plant.g. Update required and optional fields: Field Name Description Plant Name of the plant Location Location identification Name Description of the location 4.General → Define Location 1. IND6 E. Click 2.

Click 8. Click .5. Enter title as Company 6. Enter country 7. .

Storage locations can be assigned to the warehouse through warehouse management. This will indicate where the stocks are stored physically inside the plant. INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure → Definition → Materials Management → Maintain storage location Click Enter the plant where the storage location is to be created.Maintain Storage Location BACKGROUND This configuration setting enables to define the physical storage location. IND6 Click .g. Each item must have storage location. One material can be stored in many storage locations. E.

Click Enter Storage location Enter description of the storage location Click Select the storage location Double Click Enter the sequential number 1 Click .

Select the sequence number Click .

Click Click Repeat the above to maintain the address for all storage locations. .Maintain the address.

Purchase organization is the part of the enterprise structure from MM point of view. INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure → Definition → Materials Management → Maintain purchase organization 1.  One purchase organization to many company codes  One purchase organization to one company code  One purchase organization to one plant Note: .Maintain Purchase organization BACKGROUND This configuration setting enables to define the purchase organization. Following are the possibilities of assignments. Click .It must be assigned to plant. It represents the responsibilities to  Procure materials and services  Negotiation with vendor Purchase organization is assigned to the company codes and plants.

For plant IND6 4.g. . Update the following fields Field Name Purch. Description Key identifying the purchase organization.organization Purch. E.descr. click 3. E. IND6 Description of the purchase organization.2.g.org. Click .

Click 2.Assign Plant to company BACKGROUND This configuration setting enables to assign plant to the company code. . INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure → Assignment → Logistics – General → Assign plant to company code 1. Select the plant from the display 5. Click 6. Click . 3. Click 4. Select the desired company code by clicking the cursor on it.

Click .Assign purchase organization to the company code BACKGROUND This configuration setting enables to assign the purchase organization to a company code. Click 6. 3. INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure → Assignment → Materials Management → Assign purchase organization to company code 1. Select the purchase organization 5. Click 2. Select the desired company code by clicking the cursor on it. Click 4.

Select the purchase organization 5. Click 6. not much about MM organization structure.Assign purchase organization to plant BACKGROUND This configuration setting enables to assign the purchase organization to a plant. Select the desired plant by clicking the cursor on it. Now we shall look into material master related to configurations. . Click 4. Click All right guys. 3. Click 2. INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure → Assignment → Materials Management → Assign purchase organization to plant 1.

All the information have to be maintained by the different end users.Material Master Material master contains all information about a material. now let’s go to the configuration details of material master. Example:  Physical. sales and storage related details of a material is maintained by the logistics team  Finance related information is maintained by the finance team  Quality related information is maintained by the QM team Ok. Basic D .

Let’s try to make the purchasing value key as mandatory entry for plant IND6. Click .Assign field to field selection groups BACKGROUND This configuration setting enables to define the field in the material master as mandatory or optional or to hide. INSTRUCTIONS Follow the Menu Path: IMG → Logistics – General → Material master → Field Selection → Assign fields to field selection groups 1.

Click in purchasing value key row .2.

Click 5. Select the field selection as required entry . 4. E. Create new field ref by copying from the standard SAP entry.3. IND6 as field reference.g.

Click .6.

system will select the first alternate by default. Click Save . Maintain field reference as IND6 for plant IND6. It can be configured in such a way that system takes the right alternate for a given period.Define plant specific field and screen selection BACKGROUND When there are more than one Bill Of Material. . INSTRUCTIONS Follow the Menu Path: IMG → Logistics – General → Material master → Field Selection → Define plant specific field selection and plant specific screen selection 1. 3. Click 2.

for other areas like Inventory. Click to copy from ROH to the new material type 4.Define material type BACKGROUND Similar to the above alternate defining in production area. Select sales view . Type the new material type as YROH 5. Click 2. Sales and Distribution and Plant Maintenance can be maintained. Costing. Only the menu path is given here and the rest of the settings are similar to above 1. Select ROH by clicking the grey box in the left 3. INSTRUCTIONS Follow the Menu Path: IMG → Logistics – General → Material master → Basic settings → Material types → Define Attributes of Material Types 1.8. Maintain the field reference as FERT 6. MRP.1.

Note: . . Field name Field reference X plant material status Item category group Description Field references are taken from this material type. Cross plant material status to restrict the usage of material in all the plants. Default item category group to determine the item category for the material type.Standard settings are sufficient. Tick in this check box will make the initial status of the batch as restricted.

Double click Select the check box only in the relevant valuation area. Click Save Effect of this configuration setting with initial status check box ticked. E. . Indicates that the Quantity update in specific valuation area. IND7 and IND9 7.g. the initial status of that batch will be restricted. However it can be changed in the material master.Tick in this check box will not check with the external number range when creating the material master. Price control which will appear in the material master. When the new batch is created. Indicates that the value update in specific valuation area. Click 9. Click 8. IND6.

The batch status can be changed to unrestricted-use only through manually or through the QI Usage decision. .Note: Considering the restricted batch for MRP will be controlled by the IMG setting for MRP.

Maintain the Text for the new group and maintain the interval for internal and external number range . Click 2. Each material type must have a number range so as to enable to create the material of that type. INSTRUCTIONS Follow the Menu Path: IMG → Logistics – General → Material master → Basic settings → Material types → Define Number Range for Each Material Type 1. Click F6 or from the top.Define Number range for each material type BACKGROUND This configuration setting enables to define the number range for material type. Click 3. follow the menu path. GroupInsert to insert the new group 4.

Click 11. Click 9. Click . to assign to the material type 7.5. Click 6. click on the material type from the Not assigned list 8. Click . Tick the group check box to which number range is to be assigned to this material type 10. .

Click 4. E. Industry sector is the mandatory entry when creating the material master. Mechanical 6. Maintain industry engineering-sp description.g. Industry sector definition is the one through which any screen sequence can be changed. Select the Mechanical engineering by clicking the grey box in the left 3. IND6 7. Maintain industry sector.g. Click 2. Click 8. E. E. INSTRUCTIONS Follow the Menu Path: IMG → Logistics – General → Material master → Field Selection → Define industry sector and Industry-sector-specific field selection 1.Define industry sector BACKGROUND This configuration setting enables to define the industry sector and field selection specific to the industry sector. Click . Maintain field reference.g. Z 5.

By this way.Maintain user specific settings BACKGROUND This configuration setting enables to maintain the setting for material master creation specific to the user. Click . users can be restricted from accessing certain data. INSTRUCTIONS Follow the Menu Path: IMG → Logistics – General → Material master → configure the material master → Maintain User settings 1. Click Maintain the entries as shown below. Click 2. 3.

Click Effect of this configuration When user sapuser6 try to create material master. Click Maintain the entries as shown below 5. industry sector will not appear to him. .4.

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plant data and accounting data are locked till the material is posted. . Click 2. Select the appropriate material block Lock exclusively – when the material master is read during the goods movement. Late lock – data will be blocked only at the time of saving. This is essential to prevent usage of same material by different user at a given instance. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → General settings for Materials Management 1.Set material block for goods movement BACKGROUND This configuration setting enables to define the block for material. Another user can not use this material at this time.

Click .3.

IND6 3. E. Enter Plant.g.Define storage location MRP per plant BACKGROUND This configuration setting enables to define the usage of storage location stock during MRP run. Click . Click 2. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Consumption Based Planning → Planning → Define Storage Location MRP per plant 1.

Click to reach main IMG menu To learn about more of our best-selling SAP packs visit us at www.sap-topjobs. Select 1 to exclude storage location from MRP 5. Click 6.4.com .

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