Krishna Tissues Pvt. Ltd.

(KTPL)
Materials Management Page 1 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
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Prepared by Checked by Reviewed by Approved
by
TAPAS KUMAR DASH Tanmoy Dutta Mr.Biswanath Maitra
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 2 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
PROJECT: SANKALPA
Produced by
BR ERP TECHNOLOGY
Organizational MM model:
A) Input and process refinement based on the reports and evaluation.
What, when and how much to purchase, choosing the some of Purchase Cost Control, waste
elimination and Warehousing / storage== OBJECTIVES: MM OF ERP.
B) PR, QUOTATION, PO, GR, Transfer Order, Transfer Information, Invoicing, Goods Movement, Material
Consumption, Re-order Point, Safety Stock, Material Master, Vendor Master, MSR Model, Forecasting Model,
Organization Structure: MM OF ERP.
A) +B) =====OUTPUT REPORTS AND PLANNING ====
MRP, IR, PR, VENDOR EVALUATION,VENDOR CONTROL, Storage Goods Report and INVENTORY
ANALYSIS = = = = BENEFITS: 1) Keeping minimum Inventory possible, 2) Timely generation of PR, 3)
Waste elimination, 4) Time saving and Paper saving, 5) Timely information to right person, 6) Vendor selection
based on the past date, 7) Price Control in PO, 8) Purchasing Record, 9) Product Costing, 10) Segregation
between Quality, Blocked and unrestricted stock, 11) Tracking of Assets issued to Employees. 12) Automatic FI
entries = = =
LIMITATIONS: a) Pre ERP preparation, b) Business Process Re-engineering (BPR), c) Strategy
Project to choose ERP package and its Implementation Planning, d) Process design, department
should be very matured and e) Employees should be trained on the respective ERP packages.
FUTURE SCOPE: a) Business Process Management, b) Business Intelligence, c)
Customer Relationship Management, d) Supplier Relationship Management and e)
Supply Chain Management.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 3 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
HATFRlAlS HAtA6FHFtT
INTRODUCTION
Materials management function covers the activities carried out in Purchase & Stores function. The Purchasing
function covers the activities like requirements (Purchase Requisition), Inquiry to supplier (Request for
Quotation), Purchase Order, Contract, Purchase Info Record, Source determination.
The stores function (Inventory Management) covers the activities like Receipt of goods from supplier, receipt of
goods from production, Issue of material to sub-contractor / production, periodic stock taking activity. The
module also covers the Vendor’s Invoice accounting.
Organization Structure
The Organization Structure is the basic skeleton frame in SAP which structures the Company,
Organizational units, Manufacturing units and all other departments essential in running the business. The
Organization Structure at Company and Company Code level is decided by Finance and the Materials
Management Organization Structures, which will be linked to those structures, will be as follows
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 4 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
1. Plant
The Plant is an operating area or branch within a company. The plant is embedded in the organizational
structure as follows:
• The plant is assigned to a single Company Code. A company code has one or many
plants.
• One or many Storage Locations in which material stocks are managed can belong to a
plant.
• A plant can be assigned one or many Sales organizations, Dealers and Distribution
channel or Sales Organization can be assigned by Company Code.
• A plant can have several shipping points. A shipping point can be assigned to one plant.
A plant has the following attributes:
• A plant has an address.
• A plant has a language.
• A plant belongs to a country.
• A plant has its own material master data.
We can maintain data at plant level for the following views on a material master record in
particular: MRP, Purchasing, Storage, Work scheduling, Production resources/tools,
Forecasting, Quality management, Sales, Costing.
2. Storage Location
A storage location is the place where stock is physically kept within a plant. A storage
location has the following attributes:
• There are one or many storage locations within a plant.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 5 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
• A storage location has a description.
• It is possible to store material data specific to a storage location.
• Stocks are managed only on a quantity basis and not on a value basis at storage location
level.
• Physical inventories are carried out at storage location level.
• Storage locations are always created for a plant.
3. Purchase Organization
The purchasing organization is responsible for the complete processing of purchasing
activities (such as requests for quotations and purchase orders). The purchasing organization is
embedded in the organizational structure as follows:
• A purchasing organization will be assigned to one or many company codes.
4. Purchasing Group
A purchasing group is the key for a buyer or group of buyers responsible for certain
purchasing activities. One or many purchasing groups will act for one purchasing organization.
KTPL Organizing Structure:
FOR PURCHASING:
1) Company
2) Company Code
3) Plant
4) Purchasing Organization:
5) Storage Location
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 6 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
Name of Company : KRISHNA TISSUE PRIVATE LTD
Company Code: KTPL………
Plant Name: BAGNAN ( Search term: KTPL1)
Purchasing Organization (Central ) : Head Office (KTPO)
Purchasing Group:
a) Head Office ( KTPG01)
b) Plant Purchase ( KTPG02)
Storage Location:
a) Mechanical ( KTSL01)
b) Raw Material (KTSL02)
FOR SALES:
a) Sales Organization
b) Shipping Points
c) Dealers
d) Distributors
In KTPL:
• One Company Code.
• One PLANT.
• PLANT is assigned by one Company Code.
• ONE PURCHASING ORGANISATION is assigned by one Company Code.
• TWO PURCHASING GROUPS are assigned by One Purchasing Organization.
• Two STORAGE LOCATIONS are assigned by ONE PLANT.
• One Sales Organization and it is assigned by Company Code.
• There is no Sales Group.
• There are Shipping Points, Dealers and Distributors.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 7 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
FLOW DIAGRAM OF ORGANISING STRUCTURE FOR PURCHASING OF
KTPL.
COMPANY= = = COMPANY CODE = = = PURCHASING
ORGANISATION: PURCHASING GROUPS: a) Head Office Purchase b)
Local Purchase = = = PLANT = = = STORAGE LOCATIONS: a) Mechanical
( for Engineering material) Store b) RAW material ( for Chemical products)
Store.
PURCHASING MODEL (AS-IS)
• A ) HEAD OFFICE PURCHASE
• B ) LOCAL PURCHASE
Products : Chemical and Engineering
No PR for Chemical (Regular) Product and PO is placed by Head Office depending on Stock Level.
HEAD OFFICE PURCHASE:
PR ---- RFQ TO THE VENDOR----- CSQ ( PRICE COMPARISON LIST FROM VENDOR ) /
QUATION --- RECOMMENDATION ------ PURCHASE ORDER -----:WAY BILL ----- DESPATCH ----
: INVOICE : BILL ---- CLEARANCE FROM TRANSPORT ----- STORE : GOOD RECEIPT -----
ACCEPTANCE BY DEPARTMENT ------ ACCOUNTS : PAYMENT
NO PR FOR CHEMICAL (REGULAR PRODUCTS). PO IS RAISED BY HEAD OFFICE DEPENDS
ON STOCK LEVEL (THROUGH DAILY INCOMING AND OUTGOING STOCK REPORT)
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 8 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
Purchase Order is raised on two views:
• IF EXISTING VENDOR :
PURCHASE ORDER ---- DISPATCH ---- INVOICE : BILL ---- CLEARANCE FROM TRANSPORT ---
-- STORE : GOODS RECEIPT ----- ACCEPTANCE BY DEPARTMENT ------ ACCOUNTS :
PAYMENT(APPROVED BY HEAD OFFICE)
• IF NON EXISTING VENDOR:
RFQ ---- CSQ / QUOTATION ----RECOMMENDATION ---- PURCHASE ORDER ----
DESPATCH: WAY BILL---- INVOICE: BILL ---- CLEARANCE FROM TRANSPORT -----
STORE: GOODS RECEIPT ----- ACCEPTANCE BY DEPARTMENT ------ ACCOUNTS
DEPT.: PAYMENT (APPROVED BY THE HEAD OFFICE).
LOCAL PURCHASE :
No PR and PO are raised by departments or Main Store (Mechanical) on engineering products.
The products are purchased from the suppliers or Shops (Markets) directly.
For Engineering Item (Mechanical Store)
Local Purchase (near Plant) and the items are purchased by Store.
For any Engineering items, Civil materials and Furniture’s.
Requirement Slip from the Department (as needs) = = = To the Main Store (Mechanical) = = =
To the Supplier or to the Shop (Markets) = = = Through the Cash Memo = = = Goods Receipt
by the Store = = = Payments clearance by the Accounts Department at the Plant = =
=Documents sent to the H.O and Approved.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 9 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
For Chemical (RAW material Store)
Local Purchase (Inside WEST BENGAL) and items are purchased by Head Office.
For Waste Paper and Coal only.
Daily In-coming and Out-going Stock Report (through this report H.O raises order):
Purchase Order is raised on two views:
• IF EXISTING VENDOR :
PURCHASE ORDER ---- INVOICE: BILL ---- CLEARANCE FROM TRANSPORT -----
STORE: GOODS RECEIPT ----- ACCEPTANCE BY DEPARTMENT ------ ACCOUNTS
DEPT.: PAYMENT (APPROVED BY THE HEAD OFFICE).
• IF NON EXISTING VENDOR:
RFQ ---- CSQ / QUOTATION ----RECOMMENDATION ---- PURCHASE ORDER ----
DESPATCH: WAY BILL----- INVOICE: BILL ---- CLEARANCE FROM TRANSPORT -----
STORE: GOODS RECEIPT ----- ACCEPTANCE BY DEPARTMENT ------ ACCOUNTS
DEPT.: PAYMENT (APPROVED BY THE HEAD OFFICE).
PROCESS OF SERVICING OF GOODS:
Request for Quotation = = = Recommendation or Release for Request
of Quotation = = = C.S.Q or Quotation = = = Recommendation = = =
Purchase Order for Servicing of goods or Service Order Processing = =
= Receipt of Servicing Goods by the Dept. = = = Invoice or Credit
Memo Verification = = =Recommendation = = = Billing Clearance and
Payments = = = Follow up Inventory Management.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 10 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
Generalized Organization Structure (SAP System)
FI-SD-MM ORGANISED PROCESS
SALES
AREA
CREDIT CONTROL
AREA
COMPANY CODE
CONTROLLING
AREA
COMPANY
PLANT PURCHASE
ORGANIZATION
PURCHASE
GROUP
SHIPPING
POINT
SALES OFFICE
SALES GROUP
SALES
EMPLOYEE
SALES
EMPLOY
EE
SALES ORGANIZATION + DISTRIBUTION
CHANNEL
SALES
ORGANIZATION
DISTRIBUTION
CHANNEL
DIVISION
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 11 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
PURCHASING MODEL (TO BE):
LOCAL PURCHASE would be two types:
• PLANT PURCHASE
• HEAD OFFICE FOR RAW MATERIALS
PLANT PURCHASE
No PR and PO are raised by departments or Main Store (Mechanical) on engineering products.
The products are purchased from the suppliers or Shops (Markets) directly.
For Engineering Item (Mechanical Store)
Local Purchase (near Plant) and items are purchased by STORE.
For any Engineering items, Civil materials and Furniture’s.
Requirement Slip from the Department (as needs) = = = To the Main Store (Mechanical) = = =
To the Supplier or to the Shop (Markets) = = = Through the Cash Memo = = = Goods Receipt
by the Store = = = Payments clearance by the Accounts Department at the Plant = =
=Documents sent to the H.O and Approved.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 12 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
HEAD OFFICE FOR RAW MATERIALS
For Chemical (RAW material Store)
Local Purchase (Inside WEST BENGAL)
For Waste Paper and Coal only.
Daily In-coming and Out-going Stock Report (through this report H.O raises order):
Purchase Order is raised on two views:
• IF EXISTING VENDOR :
PURCHASE ORDER ---- INVOICE: BILL ---- CLEARANCE FROM TRANSPORT -----
STORE: GOODS RECEIPT ----- ACCEPTANCE BY DEPARTMENT ------ ACCOUNTS
DEPT.: PAYMENT (APPROVED BY THE HEAD OFFICE).
• IF NON EXISTING VENDOR:
RFQ ---- CSQ / QUOTATION ----RECOMMENDATION ---- PURCHASE ORDER ----
DESPATCH: WAY BILL----- INVOICE: BILL ---- CLEARANCE FROM TRANSPORT -----
STORE: GOODS RECEIPT ----- ACCEPTANCE BY DEPARTMENT ------ ACCOUNTS
DEPT.: PAYMENT (APPROVED BY THE HEAD OFFICE).
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 13 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
PR is generated by user
department /MRP:
Purchase requisition is created by 1wo Processes.
- Automatically through MRP run with Re Order
Level íor Regular items ,Lngineering,: íor Mechanical
store.
User department will create PR manually through
STOCK LEVEL ( PARAMETER BASED )
- lor Chemical products: Ior Raw Material
Store.
A) NORMAL PROCESS OF PURCHASING:
PR ---- RFQ TO THE VENDOR----- CSQ ( PRICE COMPARISON LIST FROM VENDOR ) /
QUATION --- RECOMMENDATION ------ PURCHASE ORDER -----:WAY BILL ----- DESPATCH ----
: INVOICE : BILL ---- CLEARANCE FROM TRANSPORT ----- STORE : GOOD RECEIPT -----
ACCEPTANCE BY DEPARTMENT ------ ACCOUNTS : PAYMENT------ INVENTORY
MANAGEMENT
B) PROCESS OF SERVICING OF GOODS:
PR = = = Request for Quotation = = = Recommendation and Release for
Request of Quotation = = = C.S.Q or Quotation = = = Recommendation =
= = Purchase Order for Servicing of goods or Service Order Processing =
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 14 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
= = Receipt of Servicing Goods by the Dept. = = = Invoice or Credit
Memo Verification = = =Recommendation = = = Billing Clearance and
Payments = = = Follow up Inventory Management.
General Procurement Process:
S no. Requirement Mapping in SAP Coverage Rem
arks
JJ.J Indent
generation
11.1.1 PR is generated
by user
department
/MRP:
11.1.2
Purchase requisition is created by 1wo
Processes.
- Automatically through MRP run
with Re Order Le·el íor Regular items
,Lngineering,: íor Mechanical store.
- User department will create PR
íor Chemical products: Ior Raw
Material Store.
S
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 15 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
11.1.3
Ií purchase
order is non-
existing, then
Lnquiry process
is íollowed.
Price quote
letter is sent to
vendor asking
for price &
delivery of
material.
RIQ process will be created for
the PR.
S
11.1.4
Availability of
price history.
Info record's Condition data.
S
11.1.5
Lnquiry is
íloated to
appro·ed
·endors &
unappro·ed
·endors also.
Approved vendor list is
maintained through source list.
Lnquiry can be sent to non-
source list ·endor also by
mentioning Vendor address
manually.
S
11.1.6
Oííers recei·ed
in either case are
Quotation Maintenance to be
carried out íor technically
S
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 16 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
submitted to
indenter íor
scrutiny.
Indenter clears
some or all the
quotations based
on technical
parameters.
appro·ed technical oííers.
Quotation Price Comparison is
to be carried out.
S
11.2
Purchase
Order
11.2.1
Purchase Order
is created as per
department and
type oí PO.
1he description
oí the material
should come as
a read-only íield.
Lxisting numbering scheme to be
implemented in SAP system.
1ax applicability is determined
through 1ax code in PO.
Read-only description íor material
can be done through
customization.
S
S
S
11.2.2
PO is prepared
and released to
vendors.
PO is sent by
courier, post or
Vendor`s copy oí PO is mailed to
·endor through SAP and
subsequently sent by courier.
It is not required to send
hardcopy oí PO to internal
departments. Users in these
S
S
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 17 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
L-mail. internal departments will be gi·en
·iew` access to the PO.
Required customisation will be
done íor sending through L-mail
Material Valuation:
• Valuation by: Plant Level and Valuation Area: Plant.
Materials: Types of Materials and Material Groups.
Materials are valuated through different Material Types using different G/L Account.
MATERIAL TYPES = = = = ACCOUNT CATEGORY REFERENCE = =
=VALUATION CLASS
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 18 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
Material Valuation
Material Price:
Raw Materialsare valued at Moving Average Price.
Semi Finished and Finished Products are valued at Standard Price but depends on Market Conditions.
Unit OF Measurement:
At the time of purchasing & Selling UOM of Material will be S.I Unit (Int. Standard Unit): METER, KG
& Metric Ton.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 19 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
PURCHASING CYCLE OF GOODS :
• Determination of Requirement
• Determination of Source of Supply
• Price Comparison and Vendor Selection
• Purchase Order Processing
• Goods Receipt
• Invoice Verification
• Bill Processing
• Inventory Management
Master Data for Purchase:
A) CONTRACT & SCHEDULING AGREEMENT
B) PURCHASING INFO RECORD
C) SOURCE LIST
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 20 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
CONTRACT & SCHEDULING AGREEMENT
S no. Requirement Mapping in SAP
9.J Number Range
Internal numbering system shall be
maintained.
9.2 Contract/Scheduling
Agreement
Contract
A contract can be created with reference
to RIQ, PR or manually.
Message control and pricing conditions
of the contract to be defined.
Agreement type MK (Quantity
Contract)/WK (Value Contract)
Lnter 1arget quantity or 1arget value
depending upon the type of contract.
Net Price will get copied from the Info
Record.
Once contract has been created, release
order can be created for the contract.
Create a release order
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 21 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
Lnter Plant and Quantity
On saving, a Standard PO will get
created.
Scheduling Agreement
1ransaction code ML3JL
Agreement 1ype LP
1arget quantity is to be entered
manually.
After creating the scheduling agreement,
create the delivery schedule.
PURCHASING INFO RECORD
General Data:
• Vendor
• Material
• Material Group
• Purchasing Organization
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 22 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
• Purchasing Group
• Delivery Date
• Stock Quantity
• Tax Code & Conditions
• Valid From & To
1he purchasing inío record is a source oí iníormation íor Purchasing on a certain material and the
supplier oí this material. It contains data such as the ·endor`s current prices and conditions íor this
material, the number oí the last PO, or the time inter·al in which the ·endor can supply the
material.
S
no.
Requirement Mapping in SAP Coverag
e
Rema
rks
S.J Number Range
Internal numbering system shall be
maintained.
S
S.2 Info Record 1he following fields shall be
maintained in the creation of info
records -
General Data
Reminder J
Reminder 2
Reminder 3
S
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 23 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
S
no.
Requirement Mapping in SAP Coverag
e
Rema
rks
Order Unit
Purchasing Org. Data
Planned delivery date
Purchasing Group
Standard quantity
1ax Code
Conditions
Net Price (PB00 and
subsequent supplying price
conditions)
Valid from
Valid to
SOURCE LIST:
• Plant
• Material
• Vendor
• Order Unit of procurement from the source
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 24 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
• Purchasing Organization
• Valid From and To
• Agreement or Scheduling Agreement
1he source list is used in the administration oí sources oí supply. It speciíies the allowed ,and
disallowed, sources oí a material íor a certain plant within a predeíined period. Lach source is
deíined by means oí a source list record.
S no. Requirement Mapping in SAP Coverag
e
Re
mar
ks
6.J Source List Before creating a source list,
following details are required ÷
Material and plant: In each
source list, one must enter the
material number and the relevant
plant key for each source.
Validity period: 1o be
considered for which period the
source list is to be valid. One can
define several validity periods.
If there is one info record for a
S
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 25 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
S no. Requirement Mapping in SAP Coverag
e
Re
mar
ks
material, the vendor appears by
default while creating a purchase
order for the material. If there are
more than one info records, the
preferred vendor can be specified in
the source list.
Source List Transaction Code: ME01
If INFO RECORD exists, list of Source of procurement for a particular material are given below.
The Sources are:
• Plant
• Material
• Vendor
• Order Unit of procurement from the source
• Purchasing Organization
• Valid From and To
• Contract or Scheduling Agreement
Source can be fixed or blocked for the procurement of material for KTPL Plant.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 26 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
MRP INDICATOR is used if MRP RUN is to use Source from Source List for the creation of PR or of
Schedule lines incase of Scheduling Agreement. MRP INDICATOR has three options:
• Source List record not relevant to MRP
• Record relevant to MRP
• Record relevant to MRP; Scheduling lines generated automatically
Creation of Purchasing Info Record is mandatory before the creation of Source List.
When Contract and Scheduling Agreement are created Info Record gets automatically created in
the background.
MASTER DATA:
• Material Master
• Vendor Master
• Service Master
MATERIAL MASTER
Contents:
• Material Type
• Material Group
• Material Code or Batch No.
• Material Stock Quantity(Parameter based)
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.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 27 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
In the SAP Logistics System, the data contained in the material master is required, for example, for the
following functions:
• In Purchasing for ordering
• In Inventory Management for goods movement postings and physical inventory
• In Invoice Verification for posting invoices.
• In Sales and Distribution for sales order processing.
• In Production Planning and Control for material requirements planning, scheduling, and work
scheduling.
Codification of materials will be unique and there will be no duplication of data in the system. To achieve
this, material data maintenance responsibility is taken care of by a central group and all new requests to
create new material master data shall be through this group. Materials with the same basic attributes are
grouped together and assigned to a material type. This allows management of different materials in a
uniform manner in accordance with the company's requirements. Examples of material types are:
• Raw Materials
• Chemical
• Packaging materials
• Capital goods
• Spares
• Semi finished Products
• Consumable materials
• Finished Products
• Non-Stock materials
• Non-Valuated materials
The Material types used here would be:
• HALB-Semi Finished Products
• FERT-Finished Products
Since different departments in a company work with the same material master, but each department uses
different information on the material, the data in a material master record is subdivided by user department
into views (Basic Data, MRP, Purchasing, Accounting, Sales, etc.)
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 28 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
KTPL MATERIAL MASTER
TYPES OF MATERIAL:
• Raw Materials
• Packaging materials
• Capital goods
• Spares
• Semi finished Products
• Consumable materials
• Finished Products
• Civil
• Pipeline Material
• Service
• Maintenance Assembly
• Operating Supplies
• Production Resources
• ETP
MATERIAL GROUPS:
• BUILDING MATERIALS
• AUTOMOBILES
• BOILER
• ETP for Engineering
• ETP for Chemical
• LABORATORY
• FINISHING HOUSE
• PULP MILL
• PAPER MACHINE
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 29 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
• MECHANICAL MATERIAL
• INSTRUMENTS MATERIAL
• ELECTRICAL MATERIAL
• GENERAL MATERIAL
• PACKING MATERIALS
• WET END CHEMICAL
• COATING CHEMICALS
• RAW MATERIAL FOR CHEMICAL
• ETP & OTHER CHEMICALS
• COAL
• WASTE PAPER
Following is a Pictorial Representation of Material Master with important information stored in
different views.
Material Master:
MATERIAL TYPE = =
=MATERIAL GROUP
Basic Data
(Base UOM,
Material
Group)
Purchasing:
(Purchasing
Organization,
Purchasing Group,
UOM, PV key)
Sales (sales
UOM, Sales
Area)
Storage
(Store
Location,
Issue UOM)
MRP (MRP
type, Lot size
proc)
Accounting (Val.
Class, Val Type,
Val Category)
Costing
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 30 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
Organized Materials Management Process Overview:
• Purchase Requisition: This Role Cover all the activities necessary to process a purchase requisition.
• Request for Quotation: This role covers all the activities necessary to Process a Request for Quotation
(RFQ).It is used to request the vendor to submit a quotation for supply a material.
• Purchase Order: It enables to create a change in a purchase order as well as to convert requisition into
orders.
User
Requirement
Projects
Purchase
Requisition Source
List
RFQ
/Quotation
Purchase
Order
Vendor
Master
Goods
Receipt
Receipt of Material
Assign
source
of
supply
Pur Info
Record
Invoice
Verification
Assign
source
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 31 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
• Good Receipt: Goods receipt in the system updated the purchase order delivery
schedule (Quantity received and pending for delivery), Purchase.

• Order history record and books of account (Inventory of material received and its
valuation).Goods receipt is also being done in production or process order in a
similar way. The reference document against which good receipt can be done are
purchase order or scheduling agreement, inbound delivery document, outbound
delivery document, reservation, order (production order as well as maintenance
order) and others. Outbound delivery document is used in case of goods receipt for
stock transfer order via SD route. If the stock transfer across the plants is via MM
route then stock transfer order is used for reference.
• Invoice Verification: It is the last step for in procurement cycle. It is done to verify
material quantity receipt during goods receipt and value of quantity receipt. Value
is verified by verifying rate and Taxes applicable multiply with quantity.


Stock Shifting:
• Naming of Various stocks
• Materials coming to stocks
• Materials going out from stocks
• Stock balance
This will also determine the materials in the materials management procedure in the SAP
system.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 32 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
VENDOR MASTER
Contents:
General View:
• Name of Vendor
• ADDRESS OF VENDOR
Purchasing View:
• Order Currency
• Terms of Payment
• In co terms: Cost & Freight, CIF
• Vendor Group
• Planned Delivery Time
• Schema Group
• Purchasing Group
• Reconciliation Account
• GR based verification
1he Vendor Master contains iníormation about the ·endors.
A ·endor master will be created íor all registered ·endors and one time ·endor as well. 1his
iníormation will be stored in indi·idual ·endor master records.
A Vendor Master record contains General, Purchasing and Accounting iníormation.
But MM module is responsible íor general data and purchasing data ·iews.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 33 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
S no. Requirement Mapping in SAP Covera
ge
Remar
ks
4.J Number Range
Internal numbering system shall be
maintained. See further details
below in section 4.3.
S
4.2 Data in Vendor
Master
1he following data will be
maintained at the Materials
Management data level ÷
General View
1itle
Name
Search Item J/2
Street / House No.
Postal Code / City
Country
Region
Language Key
1elephone No.
Mobile No.
Iax No.
S
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 34 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
S no. Requirement Mapping in SAP Covera
ge
Remar
ks
L-mail
Purchasing View
Order Currency
1erms of Payment
In co terms
Schema Group Vendor
GR Based Invoice
Planned Delivery 1ime
Purchasing Group
Separate account group will be created for following vendors.
Sundry Plant & Machinery
Sundry Creditors
Sundry Cement & Steel
Sundry Coal
Sundry Consultancy
Sundry Contractors
Sundry Expenses
Sundry Freight
Sundry Import
Sundry Raw Material for
Chemical
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 35 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
Sundry Sand, Ash
Sundry Stores for Mechanical
Vendors- Plant Purchase
Vendors-Services
4.4
1erms of
Payment
Standard payment terms are
mentioned below
Z00J COD Payment
J00° payment against
material delivery.
Z003 Payment within J0 days
of receipt and acceptance at stores.
Z003 Payment within JS days
of receipt and acceptance at stores.
Z004 Payment within 30 days
of receipt and acceptance at Stores.
J00° advance payment
against pro-forma invoice
ZS0J J00 ° Advance Payment
against Bank guarantee
J00° payment against proof
of dispatch.
J00° against irrevocable and
confirmed LC at sight.
S
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 36 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
J00° Cash against delivery
against shipping documents
payable at sight
J00° payment by CAD
through 1/1 payable at sight
4.S Vendor Schema
Group
Sundry Plant & Machinery
Sundry Creditors
Sundry Cement & Steel
Sundry Coal
Sundry Consultancy
Sundry Contractors
Sundry Expenses
Sundry Freight
Sundry Import
Sundry Raw Material for Chemical
Sundry Sand, Ash
Sundry Stores for Mechanical
Vendors- Plant Purchase
Vendors-Services
S
4.6 In co terms
J. CIR Costs and freight
2. CII Costs, insurance &
freight
3. CIP Carriage and insurance
paid to
4. CP1 Carriage paid to
S. DAI Delivered at frontier
S
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 37 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
6. DDP Delivered Duty Paid
7. DDU Delivered Duty Unpaid
8. DLQ Delivered ex quay (duty
paid)
9. DLS Delivered ex ship
J0. LXW Lx Works
JJ. IAS Iree Alongside Ship
J2. IOB Iree on board
J3. IRI Iree Delivery
J4. IH Iree house
JS. ICA Iree Carrier
J6. IOR Iree on Road
J7. PRL Prepaid
1PY 1o Pay
4.7 Vendor change/
deletion /
blocking status
authority to be
with select
executives.
Authority for these transactions will
be limited to appropriate personnel,
as decided by K1PL
S
Note: Views not related to Materials Management shall be maintained by the respective
modules.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 38 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
SERVICE MASTER:
• Service Description
• Unit of Measurement
• Service Category
• Service Group
• Valuation Class
• Details of Service
Authority Matrix(Release Approval)
• PR / INDENT
• RFQ
• CSQ / QUOATION
• PURCHASE ORDER
Release procedure:
Release conditions, Release Class, Release codes, release indicators, and Release strategy.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 39 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
There will be information: Pending / Status of either last PR or PO and it should
contain Price / Source in the system so Purchasing Dept can follow up the
purchasing process and generate the PR / PO.
Purchase Requisition
While PR is raised the following points should follow up:
• RESERVATION: (Movement Type: 201), Good Issue for Cost Centre, Goods Recipient, Business
Area, Cost Centre, Order
Material
Quantity
Order Unit (UOM)
Plant
Store Location
Batch
• SAFETY STOCK
• CRITICAL STOCK
Purchase Requisition ,PR, is an internal document. PR is generated either by user department or
automatically by MRP.
In K1PL the PR should base on the two important points:
• In K1PL the PR will be based on the a·ailability position oí the Stocks through Critical
Stock` which should be automatically indicated by the system.
• Incase oí Regular ,Lngineering, items:- In K1PL the Regular items will be maintained as
Auto Requisition` through R.O.L ,Re Order Le·el, in MRP.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 40 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
S no. Requirement Mapping in SAP Coverag
e
Re
mar
ks
7.J Number Range
Internal numbering system shall be
maintained.
S
7.2 PR : 1he following fields shall be
maintained in the creation of PR ÷
Material number
Quantity
Plant
Delivery Date
1racking number
Requisitioner
Account assignment
category(Optional)
Item category(Optional)
S
7.3 PR release:
CLBAN
Release is possible on the following
parameters:
a) Value
b) Material group.
c) Purchasing Organization
Inp
uts
will
be
req
uire
d at
the
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 41 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
S no. Requirement Mapping in SAP Coverag
e
Re
mar
ks
d) Account assignment category
Release procedure:
Release conditions, Release Class, Release
codes, release indicators, and Release
strategy.
tim
e of
con
figu
rati
on.
Request for Quotation
Request íor quotation ,RlQ, is treated as one oí the purchasing master records. RlQ`s are created
íor material with quotation quantity and monitored against deadline dates and collecti·e number.
Suppliers submit their quotations, which are tracked against RlQ`s collecti·e number and are
compared íor diííerent supplying conditions.
S no. Requirement Mapping in SAP Coverag
e
Rema
rks
8.J Number Range
Internal numbering system shall
be maintained.
S
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 42 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
S no. Requirement Mapping in SAP Coverag
e
Rema
rks
8.2 RIQ 1he following fields shall be
maintained in the creation of RIQ
÷
Material number
Quotation Deadline
Purchasing. Organization
Purchasing group
Plant
Delivery Date
Collective Number
Vendor Number
Conditions
Payment terms
S
8.3 Quotation Different quotations with
individual supply conditions /
rates of individual Vendors shall
be entered against the RIQ
already created.
S
8.4 Quotation Price
Comparison
Different quotations with
individual supply conditions /
S
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 43 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
S no. Requirement Mapping in SAP Coverag
e
Rema
rks
rates of individual Vendors, are
compared against ÷
• Mean value quotation
• Minimum value quotation
Specifying common Collective
Number entered in RIQ normally
compares quotations.
8.S RIQ: Direct
thru. Lmail from
SAP.
Need to configure output type for
L-mail option.
S
Purchase Order
S no. Requirement Mapping in SAP Coverag
e
Re
mar
ks
J0.J
Number Ranges
Number ranges are created and
attached to the PO document types
& will be internal.
J0.2 Create Purchase
order
Input Iields ÷ (Initial Screen
ML2JN ÷ Create Purchase Order)
Header Details
S
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 44 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
Vendor
Order 1ype
PO Date (Automatically
Populated)
Purchasing Organization
Purchasing Group
Item Overview
Material
PO Quantity
Plant
Storage location (optional)
Net Price
Delivery Date (Default 1oday
Date Populated, change if required)
Item Details
Under delivery 1olerance
(Optional)
Over delivery 1olerance (J0°
for Quantity above J0 M1 for
Chemicals only.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 45 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
PO Quantity (Copied from
Overview)
Net Order Price (Copied from
Overview)
Delivery Date (Copied from
Overview)
1ax code
Conditions
Item text
Release of PO:
CLKKO
1his component is used to set up
appro·al procedures íor purchasing
documents. Under such a procedure, ií
an external purchasing document
íulíils certain conditions ,e.g. the total
order ·alue exceeds Rs.1, 00, 000,, it
has to be appro·ed ,by the Asst
General manager, íor instance, beíore
it can be processed íurther. 1his
process oí appro·ing a proposed item
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 46 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
oí expenditure is replicated in the SAP
System by the "release procedure".
Value wise release procedure shall be
established.
lollowing parameters are needed to
establish Release procedure:
Release conditions, Release Class,
Release codes, release indicators, and
Release strategy.
Right now Dummy release strategy is
maintained at plant but for KTPL it
depends on final clarification from
KTPL. (Input required from KTPL).
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 47 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
PO IOR S1OCK MA1LRIAL:
• Create PO Manually
• Create PO with a Master Record
Ií a Material Master Record exists íor the item to be
ordered the proceed:
Logistics ~ ~ MM ~ ~ Purchasing ~ ~ PO---Create
Vendor , Supplying Plant known
Access the PO screen,single screen times out, and split
into three sections:
• Header:
Conditions
1ext
Address
Delivery
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 48 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
Partners(if applicable)
Status
Organization Data
• Item Overview
Material
Short 1ext
Quantity
Delivery Date
Net Price
• Item Details
1ext
Quantity
Delivery
Invoice
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 49 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
Conditions
PO History
Account Assignment
Material Data
\e can hold the PO and a PO Number is still issued and
we can come back to the document at a last time to íix
errors. \e need to clear all the error messages so that the
PO should be appro·ed.
PO for Non-Stock Material
Manual entry of details required on the Item
Overview
A PO without Master Record contains no Material
Number. We need to manually enter an item
description, a Material Group and an Account
Assignment category to manage the costs.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 50 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
Reporting in material management
The user has the task of monitoring the following data in the Inventory Management component:
• Stock data for company’s own stocks
• Stock data for external stocks
• Data on stock types
• Data on special stock types
• Movement data for stocks
Activities in Materials Management
• Display Stock List
• Display SLED/Date of Production
• Display Valuated Special Stock
• Display Availability Overview
• Display Stocks for Posting Date
• Display Material Items
• Display Cancelled Material Documents
• Display Material Document for Reason for Movement
• Read/Display Material Document Archive
The stock entry is to done by the Legacy system (MAS). The table and fields used in Report making must be
updated in SAP along with the Legacy system (MAS).
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 51 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
TAX DETAILS(for Purchasing):
Purchase in Negative List:
• VAT (INPUT: CAPITAL GOODS): 4% ; 13.50%
• VAT (INPUT): 4% ; 13.50%
• Excise Duty(incase of excisable goods):
• Service Tax (for Service Order): 10.30% including (Education cess: 2%; Higher
Secondary, Secondary education cess: 1%)
Purchase un-rested dealer (direct use):
Purchase un-rested dealer (indirect use):
‘0’ TAX (NO TAX):
PURCHASE AT Compound rate: 0.25%
IMPORT from Outside INDIA:
IMPORT CAPITAL GOODS:
E1 PURCHASE:
Inter State Purchase against FORM C:
Inter State Purchase without FORM C:
Inter State Purchase of Capital Goods:
High-Sea Purchase:
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 52 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
Sales:
• VAT (OUT PUT): 4%
• L.S.T: 4%
• C.S.T: 2%
PURCHASE ORDER should contain the above and below details.
• Freight(Party) / Delivery:
• Packaging and Forwarding charges:
• Discount:
PRICING PROCEDURE:
Pricing Conditions Table = = = Acc. Sequence = = = Condition Types = = =
Calculation Schema = = = Schema Group = = = Schema Group Organization
= = = Schema Group Determination = = = Conditions Record.
PRICING CONDITIONS IN QUOTATION(WITHOUT TAXES)
SUBMITTED BY VENDOR
• A) BASIC PRICE OF MATERIAL PER PIECE (GROSS PRICE QUANTITY BASED)
• B) DISCOUNT (Percentage basis)
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 53 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
• C) PACKAGING & FORWARDING CHARGES (Surcharge)
• D) NET PRICE: A+B+C
• E) FREIGHT (DELIVERY COST: to be borne by the buyer): absolute fixed amount
• F) EFFECTIVE PRICE (Landed cost of the material: D+E)
WITH TAXES
SALES TAX on NET PRICE.
INVENTORY PROCESS OF KTPL:
Age-wise / Group-wise inventory to be available to determine Slow-moving / Surplus /
Obsolete items.
For Engineering item:
a) Slow-moving item (more than 3 months and less than 6 months).
b) Surplus item (less than 3 months).
c) Obsolete item (more than 1 year and less than 2 years).
For RAW MATERIAL:
Obsolete item only: more than 3 months.
Physical Inventory is a process by which actual inventory stock is counted by physical quantity
and compared against the book quantity. It is done at Plant level, Storage Location level,
Material Code level and Batch level.
It is based on three stages:
a) Physical Inventory Preparation
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 54 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
b) Physical Inventory Count
c) Physical Inventory Analysis
It is based on two types: Ad-hoc Physical Inventory and Cycle-Count Inventory.
GOODS ISSUE:
Goods Issue
S no. RLQUIRLMLN1 MAPPING ON SAP Co·erage Remarks
18.1 Number Range
Internal numbering system shall be
maintained.
S
18.2 Goods Issue (GI) Materials shall be issued with respect
to Reser·ations , Maintenance orders
and direct to cost centre with the
íollowing íields -
GI Date
Cost Centre
Item Serial Number
Item Code
Item Description
Unit oí Measure
S
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 55 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
Issued Quantity
Prepared by, Issued By,
Mo·ement type ,e.g. 201,
Batch Number
1ransaction Code MIGO,MB1A
PROCESS CYCLE OF GOODS ISSUE OF KTPL:
• MATERIAL: A) RAW MATERIAL (CHEMICAL) B) SPARES & CONSUMABLE
(ENGINEERING) = = = CREATE RESERVATION = = = STOCK CHECK = = =
RESERVATION POSTED = = = MATERIAL ISSUE.
• INTERNAL DEPARTMENT TRANSFER = = = Through INTER UNIT MOVEMENT
VOUCHER.
• MATERIAL RETURN VOUCHER
TRANSFER POSTING:
• Process description:
This process covers the stock transfer posting (logical) between stock types and between
materials and stock transfers (physical) between plants and storage locations. There are a
number of movement types under the same transaction code.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 56 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
Transfer between stock types (321) will be done in the process of usage decision in QM
module.
In the case of material number change, the warehouse staff would perform a transfer from
material to material in SAP to balance the stock of the materials in question.
In the case of transfer between storage locations, the warehouse staff will do a relevant transfer
posting transaction in SAP and physically move the materials from one location to another.
In the case of transfer between plants belong to the same company code using one step, the
warehouse staff will do a relevant transfer posting transaction in SAP and physically move the
materials from one plant to another.
In the case of transfer material from consignment stock to own stock, the warehouse staff will
transfer the goods from one location to another location and then do a movement type 403
transaction after which a clearing AP account occurs.
Movement Type:
Movement type is the heart of Inventory Management in SAP. Movement type is a three-digit
numeral classification key indicating the type of movement type (e.g. goods receipt, goods issue
and physical stock transfer).Any movement type is characterized by stock update and value
update or sometimes only stock update.
Different movement type to be used for transfer posting or stock transfer such as One step stock
transfer between plant(301),Removal-First step of the two –step stock transfer between
plant(303),Transfer posting of material within same plant different storage location(311) etc.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 57 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
MOVEMENT TYPE TO BE USED IN SAP MM
MOVEMENT TYPE DESCRIPTION
311
"Storage location to storage Location>unrestricted to
unrestricted " --This is used when you want to transfer
materials between two different storage locations. Movement
type 311 will be used as an example in this script to illustrate
the one step approach which can only happen between same
stock types in two different storage locations.
321
"QI to unrestricted"--This is used when usage decision in MM
module.
309
"Material to Material"--This is used when you want to transfer
between same material with different material numbers
453
“Stock to stock>own from returns”—This is used when you
transfer the customer returned goods from the customer return
stock to your own stock. There will be accounting impact
following this transaction.
403
Transfer posting to own from consignment
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 58 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
MM & SD INTEGRATION IN KTPL
• Item/Material Master is to be maintained in SAP system.
• Availability of Stock is maintained in SAP system.
• Transfer posting of material between different storage location to railway siding is to be
maintained SAP system through Movement type.
COMPANY CODE
SALES ORGANIZATION
DISTRIBUTION CHANNEL
DIVISION
SALES AREA
PLANT
STORAGE LOCATION
MATERIAL MASTER / ITEM MASTER
STOCK OVERVIEW TRANSFER POSTING
FINAL STOCK OVERVIEW
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 59 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
GOODS RECEIPT:
Goods Receipt
S no. RLQUIRLMLN1 MAPPING ON SAP Co·erage Re
ma
rks
1¯.1
Number Range
Internal numbering system shall be
maintained.
S
1¯.2
Goods Receipt
(GR)
Vendor supplies
material along with
Deli·ery Challan,
Lxcise in·oice ,ií
applicable,,
Returnable Gate
pass ,In case oí
sub-contract,,
Recommended Process -
• Recei·e material
• Process GR ,Material kept in
Blocked,Quality stock, unrestricted,.
• Material Oííered íor Inspection
ií necessary. ,Material in Quality stock,
• 1ransaction code MIGO
Movement type J0J.
• lor excisable material checking
oí Lxcise documents and Part 1 and
Part 2 entries will be done at this time.
• GR printed out.
• 1o ·iew pending GR blocked
stock ,i.e. GR pending íor inspection,
transaction code MB51 to be used.
• Accepted material quantity will
be posted through the mo·ement type
105 to unrestricted stock on receipt oí
Inspected and accepted GRN írom
S
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 60 of 70
SAP ECC 6.0
IMPLEMENTATION
Business Blueprint Version No - 1.0
S no. RLQUIRLMLN1 MAPPING ON SAP Co·erage Re
ma
rks
Inspecting authority. ,Accounting
document will be created,
• Rejected material will return to
the ·endor through mo·ement type
124.
• Challan no and challan date will
be maintained in the deli·ery Note.
• Stock is placed among diííerent
storage locations in a plant.
• lor purchases against licenses
there shall be one GR íor per license.
GOOD RLCLIP1 IOR PURCHASL ORDLR:
Show overview Hold Check Post
Goods Receipt: General Data: Document Date, Posting Date
Vendor, Head 1ext, Additional Detail, Delivery Note, Bill of lading
GR / GI Slip No.
Material Short 1ext OK Qty Store Location
UOM Movement 1ype Cost Centre Order Qty
Krishna Tissues Pvt. Ltd.
(KTPL)
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PROCESSING OF FREIGHT:
PURCHASING FOR RAW MATERIAL & ENGINEERING ITEM:
• FREE DELIVERY
• TO PAY (AFTER DELIVERY)
• PAID (BEFORE DELIVERY)
• NOT APPLICABLE for very less valuated item and less quantity also.
NO FREIGHT AGAINST LOCAL PURCHASE FOR ENGINEERING ITEM (LESS
VALUATED ITEM AND LESS QUANTITY ALSO). Local Purchase for Stationery
(Engineering) products generally.
FREIGHT WHILE SALES:
Since freight is not known till the receipt of T-bill from the transporters, it will need to be
entered manually. A condition type will be created in the system for this purpose. There are
three cases in freight:
I) Freight is paid by the customer in which case we are not concerned with the fright in our
system
II) Freight is paid by KTPL in which case it is shown as statistical condition (The amount is
shown in sales document but has no bearing on the final price). A pricing condition will be
Krishna Tissues Pvt. Ltd.
(KTPL)
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created for this. This condition will be statistical in nature and will not impact the invoice
amount.
III) The freight is to be paid by KTPL but the payment has to be made post delivery by the
customer in which case KTPL subtracts it from the bill amount. A separate pricing condition
will be created for this. This condition will impact the invoice amount and will be subtracted
from it.
INVOICE CLARIFICATION:
COMPANY CODE
Show PO Structure Show
Work
list
Hold Simulate Messages Help
Transaction:
Number of Invoice
………..
Balance:
Basic Data:
• Invoice Date
• Reference(Date)
• INR: Calculate
TAX & Type of
Tax with %
(Input).
Payment Details TAX Withholding
Tax
Vendor
Address &
BANK
ACCOUNT
Krishna Tissues Pvt. Ltd.
(KTPL)
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• Posting Date
• Amount
• Tax Amount
• Text
• Payment Terms
• Baseline Date
• Company Code
PO Reference:
• Item
• Amount
• Quantity
• Order
Unit(UOM)
• PO Number
• PO Text
• TAX Code
G / L
Account
Material PO :
Contract
&
Agreement
INVOICE TRANSACTION CODE: MIRO
Krishna Tissues Pvt. Ltd.
(KTPL)
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ACCOUNTS & PAYMENTS:
Accounts Payable – Product Invoice Verification
MM & FI INTEGRATION
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 65 of 70
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GR & IR CLEARING ACCOUNT
Company Code
Company Code Order Type: Clear: Delivery cost
Posting Date Surplus Type :
Vendor • Delivery
Surplus
• Invoice
Surplus
•GR /IR
Clearing
Account
•Delivery
Cost
Account
Freight Vendor
Purchasing
Organization
Purchasing
Group
Plant
Purchasing
Document
Krishna Tissues Pvt. Ltd.
(KTPL)
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Purchase Order
Date
Category
SUB-CONTRACTING PROCESS
Purchase Process – Sub-Contracting
Requirement Mapping in SAP
Indent generation
PR is generated by user
department /MRP:
Purchase requisition is created by 1wo Processes.
- Automatically through MRP run with Re Order
Le·el íor Regular items ,Lngineering,: íor Mechanical
store.
- User department will create PR íor Chemical
products: Ior Raw Material Store.
Ií purchase order is non-
existing, then Lnquiry
process is íollowed. Price
quote letter is sent to
vendor asking for price &
delivery of material.
RIQ process will be created for the PR.
Krishna Tissues Pvt. Ltd.
(KTPL)
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S no. RLQUIRLMLN1 MAPPING ON SAP Remark
s
14.1 Material is issued
to sub-contractor
íor Production
Purposes.
PO shall be prepared íor sub-contract
charges.
BOM is to be maintained ,which
contains source material issued íor
subcontracting & 1arget material to be
recei·ed to stock,.
Goods are issued against Sub-PO to
·endor.
Sub-contract challan preparation is
carried out through SAP system &
running numbers are assigned to it.
14.2 Vendor processes
the material &
returns back the
íinished material.
Sub-contracted material shall be
recei·ed through GR.
14.3 During GR , QA
process, rejections
are charged to
either to ·endor or
his subcontractor
GR Acceptance , Rejection will handle
this requirement.
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 68 of 70
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EXCISABLE AND SUB CONTRACTING STRUCTURE OF KTPL
---- Finished or Semi-finished product supplier against the PO
PO issued to Raw Material Supplier with Delivery Address of Sub-
Contracting Vendor-----
Sub-contracting PO issued for finished or Semi-finished product----
= = = = = = = = = = = = = = = = = = = = = = = = = = =
Organization A ---------------------Raw Material Supplier-----
Raw Material is supplied to Sub-Contracting Vendor against the PO issued
by Organization A-----
------------------Sub Contractor B
Krishna Tissues Pvt. Ltd.
(KTPL)
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REPORTS:
Sl
No. T Code Description
1 ME2N PO List By Number
2 ME2L PO List By Vendor
3 ME2M PO List By Material
4 ME2B PO List By Tracking Number
5 ME2K PO List By Account assignment
6 ME1M Info record list By Material
7 ME1L Info record list By Vendor
8 ME1W
Info record list By Material
Group
9 MEOM Source List
10 MKVZ List Of Vendors
11 MM60 List of Materials
12 ME1P Purchase Order Price History
13 ME4l RFQ By Vendor
14 ME4M RFQ By Material
15 ME80AN General Analyses for RFQ
16 ML84 List of Service Entry Sheet
17 ME80 General analysis for Purch docs
18 ME81 Analysis for Order Values
19 ME5A PR list
20 MCE3 PIS Gen Analysis Vendor
21 MCE7 PIS Gen Analysis Material
22 MB51 List of Material doc. (GRN)
23 MR51 List of Accounting docs
24 MBSM
List of Cancelled Material
Docs(GRN)
25 MMBE Stock overview
26 MB53 Stock Plant wise
27 MB52 Warehouse Stock
28 MB5B Stock On posting date
29 MB5S List of GR/IR Balances
30 MC.9 Stock
31 MC.A Receipts/Issues
Krishna Tissues Pvt. Ltd.
(KTPL)
Materials Management Page 70 of 70
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