CMT TM MM02 V1.0

SUCO SAP PROJECT PHASE I
MATERIALS MANAGEMENT
MM02 - MATERIALS MANAGEMENT
OVERVIEW
VERSION 1.0
May 18, 2011
MATERIALS MANAGEMENT OVERVIEW 1 of 149

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TABLE OF CONTENTS
OVERVIEW: MATERIALS MANAGEMENT OVERVIEW ........................................... 3
MODULE: MASTER DATA....................................................................................... 14
1. Create Material Master– MM01............................................................................................................. 14
MODULE: PROCUREMENT PROCESS .................................................................. 35
2. Create Purchase Requisition for Stock Material – ME51N ........................................................... 35
3. Create Purchase Order – ME21N ........................................................................................................ 53
4. Goods Receipt for Purchase Order .................................................................................................... 77
MODULE: TENDER/CONTRACT PROCESSES (SERVICE)................................... 93
5. Create Request for Quotation – ME41 ............................................................................................... 93
6. Maintain Quotations – ME47 .............................................................................................................. 108
7. Create Contract – ME31K .................................................................................................................... 122
Effective Date: 5/18/2011 MM02 - Training Manual

Version: 1.0 Page 2 of 149
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Overview: Materials Management Overview
This module highlights the key points from the presentation.
Materials Management Overview
Organizational Elements
Organizational Levels
 Some material data is valid at all organizational levels, while other data is valid
only at certain levels
 The organizational units are as follows:
– Company code
– Plant
– Storage location
– Purchasing organization
– MRP Areas
Company Code
 Company:
– Produces a complete self-contained set of accounts for purposes of
external reporting
– Company code allows creation of a full balance sheet, as well as Profit
& Loss Accounts
– Master data is created at the company code level – balances for
customers, vendors, etc. are also maintained at this level.
Plant
 A plant is a place where either material is produced, or goods and services are
provided.
Storage Location
 Storage location:
– Physical location(s) within a plant where products are stored, also used
within purchasing to define the delivery address.
Purchasing Organization
 Purchasing organization:
– Responsible for procurement for one or more plants
– Responsible for negotiating pricing and delivery terms with vendors

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Purchasing Group
 Purchasing group:
– Represents individual buyers in an organization & is responsible for
procurement for one or more material groups.
– Interacts with the vendors for quotations, purchase order finalization,
follow-up & expediting deliveries.
MRP Controller
 MRP Controller (Planner)
– The person responsible for a group of materials in materials
requirement planning (MRP) in a plant or company or warehouse
– Responsible for setting min/max levels
Master Data
 Contains purchasing data assist the buyer performing buying activities.
 Purchase master data consist of:
– Material Master
– Vendor Master
– Purchase info records
– Source list
Material Master
 The material master contains all of the data required to define and manage
materials. It integrates data from:
– Accounting
– Purchasing
– Materials Requirements Planning (MRP)
– Warehousing, and
– Other departments
 It integrates data from purchasing, accounting and other departments
 Is used as a source of data for purchase order processing throughout the
procurement cycle and for stock movements in the inventory management
cycle.
 Materials are separated by material type.
 Different views are required to be maintained for a material master
 Data maintained at different levels:

– Some data at company code level
– Some data at plant level
Industry Sector
 The industry sector specifies
– the branch of industry to which a material is assigned
– which screens appear and in what order
– which industry specific data appears on your screen

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Material Type
 Material type defines which views required to be maintained.
 For Example:
– Raw Material
– Finished Product
– Semi-Finished Product
Views in the Material Master
 Basic data 1 and II

 Purchasing
 Purchase Order Text
 MRP1, MRP2
 General Plant Data/Storage1
 Accounting1
Basic data
 Basic data characterizes the material by defining:
– Material description
– Base unit of Measure
– Material Group
– Division (Order Status)
– Gross, net weight and unit
Purchasing
 This view must be maintained for materials that are to be procured externally
 The following fields are important in this view:
– Purchasing Group
– Urging reminders
– Goods receipt processing time
Material Requirements Planning 1

 MRP controls the planning of future requirements by creating order proposals
based on settings in the MRP view
 The following are important in this MRP1 view:
– MRP type
 The following are important in the MRP1 Area
– MRP type
– Reorder point (min stock level)
– MRP controller
– Lot size
– Maximum stock level

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Material Requirements Planning 2

_ Special Procurement
_ Safety Stock
_ Planned Delivery Time
Plant Storage Data

 Important fields in this view:
– Storage bin
– Unit of issue
– sub-storage bin
– Storage Condition
– Creation Date
– Last Issue Date
– Movement Type
– Storage Location
Accounting
 In this view the material valuation is specified
 It determines among others:
– The General Ledger accounts in Financial Accounting to which stock
values are to be posted
– Price control and price of material (moving average price)
– Also shows total stock + total value in plant
Text is maintained under:

– Basic Data Text
– Internal Comment (Additional Data)
– Purchase Order Text
Material Number
 Alphanumeric key uniquely identifying the material.
Purchasing Process
 Requisition is an instruction for buyers to procure the requested materials or
services
 Request for quotation are created in SAP and sent to vendors.
 Quotations are maintained by vendor then buyer depending on the total value
and prices compared for vendor selection
 Vendor selection is based on predefined vendor evaluation criteria
 Purchase Order is created against the PR or RFQ and approved using release
strategies.
 Order confirmation and tracking as required.
 Goods received at warehouse.
 Invoice receipt by finance
 Vendor paid by Accounts Payable

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Purchase Requisition
 Is an internal document used within the company (Equivalent to MPR)
 Purchase requisitions (PR) are manually created or automated by Materials
Requirements Planning (MRP)
 Buyers can only process released purchase requisitions
 Requisitions can be converted into RFQ, PO and Contracts
 Purchase requisition in SAP
– Information available at your fingertips
– Different views (tabs) on one screen
– Easier to browse
– Interactive links
– More information about requested item
Creation of Purchase Requisition

 Purchase requisition are created:
– Manually by end user
– Automatically through Material Requirement Planning (MRP)
Texts Tab in Header

 Within tab Text you add the following:
– Item text
• In Header Note you can write specific instruction for the buyer
related to this Purchase requisition.
• This note will NOT be copied into Request for Quotation,
Purchase Order or Contract.
Item Overview Characteristics

 Account assignment category determines which account assignment data
(such as cost center, account number and so on) is necessary for the item
 Item category determines the field selection and whether any additional data
screens are shown e.g. D- Services
 Material Number & Description
 Quantity, Delivery date, Plant, Storage location
 Purchasing group, Purchasing organization ..etc
Request for Quotations
Request for Quotation

 You can create RFQ manually, copy another RFQ or use purchase requisition
or outline agreement as an entry template
 Both RFQ and Quotation is a single document having one number.
 Each vendor will get one identical RFQ number.

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Collective Number
 You can link several RFQs that belong together using a collective number.
 You enter the collective number in the header data of the RFQ.
 You can select the RFQs and quotations with the collective number.
 The collective number can have a maximum of ten characters and can be
alphanumeric.
Quotation
 Is the offer from a vendor regarding the RFQ
 To register the bidding of a vendor in the system
 To compare all submitted quotations by using the comparison list
 To create rejection letters
 Should be maintained prior to converting into a purchase order or outline
agreement
Material Contracts
Outline Agreements
 Is a longer-term agreement with a vendor to supply materials or perform
services over a certain period on the basis of predefined terms and conditions
 Contract can be created without reference or with reference to RFQ or another
Contract.
Contracts Types
 Quantity contract
• The contract is fulfilled when a stipulated target quantity per contract
item is reached as a result of the issue of release orders.
• Document type MK
 Value contract
• The contract is fulfilled when a stipulated overall target value (total
value of all items) is reached as a result of the issue of release orders.
• Document type WK
Purchase Order Processing
Purchase Order Process

 Is the legal and committed request for a vendor or a plant to deliver materials
based on predefined agreements (contracts, quotations).
 Is created for ordering materials
 Records the specifications and conditions for the necessary materials and or
services
 Purchase Order can be printed after final approval.

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Purchase Order Header Data

 Characteristics are:
– Organizational data
• Company code
• Purchasing group
• Purchasing organization
– Payment terms
– Header Texts
– Conditions
Item Overview Characteristics

 Account assignment category
Determines which account assignment
data (such as cost center, account
number and so on) is necessary for the
item.
 Item category
Determines the field selection and whether any additional data screens are
shown e.g. services.
 Material specification, order quantity, delivery date and plant specification.
 Text specification to indicate the type of services that needs to be performed
(in that case no material specification).
Account Assignment
 Is used to assign the cost object for booking of the costs
 The following account assignments are used:
– A: Asset
– N: Network
– Blank: Standard
– K: Cost Center
– F: PM Work Order
– P: Project
– U: Unknown
Item Category
 Determines how the requisition is controlled
 The following item categories are used:
 Standard
 Service

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Item Details
 Material Data
 Quantities/Dates
 Confirmations
 Item texts
 Item conditions
 Account assignment control
 Purchase order item history
Goods Receipt
 Goods receipts (GR) record the inward movement of materials by :
– Verifying the receipt against the purchase order
– Valuating material at purchase order price
– Creating material and accounting documents to record the event
(including debiting inventory/consumption account and crediting GR/IR)
– Updating the purchase order history
– Providing basis for invoice verification
Result of Goods Receipt Posting

 General ledger accounts updated
– stock account
– consumption account
– GR/IR account
 Material document created
 Goods receipt slip printed
 Purchasing data
– purchase order item history
 Accounting documents created
 Stock quantity
 Consumption statistics
Goods Receipt: MIGO Transaction

 Goods receipts (GR) record the inward movement of materials by :
• Verifying the receipt against the purchase order
• Valuating material at purchase order price
• Creating material and accounting documents to record the event
(including debiting inventory/consumption account and crediting GR/IR)
• Updating the purchase order history
• Providing basis for invoice verification

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Reversal /Cancellation
 The reversal posting of a goods movement is identical to the receipt posting
but specify movement type = initial movement type +1
 The reversal of a goods receipt will be used to correct a mistake when posting
a receipt
 SAP creates a material document for each goods receipt posting, which gets a
unique document number
 A goods receipt posting can be cancelled with reference to the document
number
Goods Receipt : MIGO Transaction
 In the MIGO transaction, you specify via the reference document indicator that
it is a goods receipt with reference to purchase order
 Once the reference document has been entered, the SAP system will propose
all “open” items for goods receipt. By default GR quantity = open quantity, i.e.
quantity not yet delivered
 Cannot receive more than is on the Purchase Order (outside certain
tolerances).

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Course delivery
Course delivery will follow the general pattern of presentation with discussion of the
steps in the business process followed by demonstration and then exercises carried
out by the participants.
Classroom rules
It is expected that the following simple rules are observed
 Prompt attendance so early start can be made each morning
 Mobile phones switched off while in the classroom
 Regular breaks throughout the day
 Attendance for the whole training day
Play Client
After classroom training please login to play client XXX using your own id and
practice the exercises again.

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Module: Master Data
At the conclusion of the exercises, you will be able to:

 Create Material Master
1. Create Material Master– MM01
SCENARIO
Use this transaction to create material master directly in SAP with the following
views, Basic view1, Basic view2, Classification, Purchasing, Purchase Order Text
MRP1, 2,General Plant/Storage1 and Accounting view1.
INSTRUCTIONS
Follow the Menu Path: Logistics  Materials Management  Material Master 
Material  MM01 - Create (General)  Immediately

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SAP Easy Access
1. Double click MM01 – Immediately

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Create Material (Initial Screen)
2. Information step:
SAP Field Name SAP Field Description
Material Alphanumeric key uniquely identifying the material.
Industry Sector The branch of industry to which a material is assigned

Material Type Material type defines which views required to be maintained
3. Exercise step: Update the following fields:

Field Name Values
Material Refer to datasheet
Industry Sector M Mechanical Engineering
Material Type ERSA Spare Parts

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4. Click Enter

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5. Select the Views by clicking on the grey button next to them

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6. Click Organizational levels within the Pop-up screen
7. Information Step

Plant Enter the 4-digit plant code for which the desired material is
to be created. To search for the plant code against the input
field for Plant click on the icon. Double click to select the
required plant.
Storage Location Number of the storage location at which the material is
stored. A plant may contain one or more storage locations

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Field Name Values
Plant 1000
Storage Location 0001
Note:
Depending on the views selected in above option, the pop-up will provide
input fields for org units to be entered
9. Click Continue

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Field Name Field Description
Material The material number is an External number which
appears on this screen
Material Enter the description of the material
description This text can be up to maximum 40 characters to
describe the material description.
Base Unit of Enter the base unit of measure –
Measure Unit of measure in which stocks of the material are
managed. The system converts all the quantities
you enter in other units of measure (alternative units
of measure) to the base unit of measure.
Material Group Enter the material group of the material
Key that you use to group together several materials
or services with the same attributes, and to assign
them to a particular material group.
You can use material groups to:
Restrict the scope of analyses
Search specifically for material master records via
search helps
Basic Data Text Used to enter text for basic data and internal
comment for that material
Gross weight Gross weight expressed in the unit of weight
specified by you in the Unit of weight field.
Net weight Net weight expressed in the unit of weight specified
by you in the Unit of weight field
Weight unit Unit referring to the gross weight or net weight of the
material

Field Name Values
Short Description “Any short description for the material”
Basic Unit of measure PC
Material Group 001
Note: The screen is highlighted by the respective tab so now you are in
screen of Basic Data Scroll down to check basic data text and internal
comment (Additional data)

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12. Click Additional data under Basic data1 to enter the text.
Note:
Alternatively click to enter basic data text and for

internal comment
Create Material xxxxxxxxxx

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13. Click Main data to go back to Basic data1 screen

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14. Click Enter

Ind.Std.Desc Description of the material in accordance with the
appropriate industry standard.
Note:
The tab which is highlighted within the screen now shows that you are in
Basic data 2 screen.
Material Number and Description gets carry forward from the Basic Data 1
Screen.

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16. Click Enter

Purchasing Group Key for a buyer, who is/are responsible for certain
purchasing activities.

Field Name Values
Purchasing Group 001

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19. Click Enter

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20. Type the Purchase Order Text

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21. Click Enter

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MRP group The MRP group contains all the materials from the point of
view of MRP for assigning special control parameters for the
total planning run. These control parameters include, for
example, the strategy group, the consumption mode, and
the planning horizon.
MRP type Key that determines whether and how the material is
planned.
MRP controller Specifies the number of the MRP controller or group of MRP
controllers responsible for material planning for the material.
Lot size Key that determines which lot-sizing procedure the system
uses within materials planning to calculate the quantity to be
procured or produced.

Field Name Values
MRP Type VB
Reorder Point 50
MRP Controller 000
Lot Size EX (Lot-for-lot order quantity)
Note:
Data that gets carried over to this screen are the Base unit of measure,
purchasing group, MRP Group, and MRP controller.

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24. Click Enter

Planned Deliv. Time Number of calendar days needed to obtain the material or service if it is
procured externally.

Field Name Values
Planned Deliv. Time 20

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27. Click Enter

Storage bin Identifies the storage bin within a storage location
where the material is stored. Required for IM managed
Storage Location only.
Note: At first goods receipt for that new material, the receiving warehouse
will update storage bin using MM02.

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29. Click Enter

Valuation Class The applicable valuation class depending on the material type selected for
creation of the material master.
The valuation class has the following functions:
Allows the stock values of materials of the same material type to be posted
to different G/L accounts.
Allows the stock values of materials of different material types to be posted
to the same G/L account.
Determines together with other factors the G/L accounts updated for a
valuation-relevant transaction (such as a goods movement).

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Price Control Indicates the price control used to valuate the stock of a material. You have
the following options:
Standard price (S)
Moving average price (V)
Default price control V in the material master should not be changed.
Price unit Number of units to which the price refers.

Default to be maintained is 1
Moving Price The system calculates the moving average price automatically by dividing
the material value in the stock account by the total of all storage location
stocks in the plant concerned. It changes the price with each valuation-
relevant movement
Total Stock Total of all valuated stocks of the material that are subject to the same
valuation
Total Value The value of all valuated stocks of the material that are subject to the same,
This value is posted to the assigned balance sheet account in financial
accounting.
Field Name Values

Valuation Class 3040
Price Control V
Price Unit 1

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32. Click Enter
33. Click yes to save material
The system displays the message “Material xxxxxxxxx created”
34. Click Exit till SAP Easy Access screen.

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Module: Procurement Process

 Create Purchase Requisition
 Create Purchase Order
 Goods Receipt
2. Create Purchase Requisition for Stock Material – ME51N

SCENARIO
Create a Purchase Requisition (PR) for Stock material
This PR is an input to Purchase Department to initiate procurement.
Once the purchase requisition created the buyer can take action for further
processing. The buyer cannot take any action unless the purchase requisition is
released by all concerned authorities.
INSTRUCTIONS

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Follow the Menu Path: Logistics  Materials Management  Purchasing 

Purchase Requisition  ME51N - Create
1. Double click ME51N – Create

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Create Purchase Requisition
Note:
The Purchase Requisition screen is divided into three sections, Header, Item
overview, and Item detail.
Header: In Header Note you can write specific instruction for the buyer
related to this Purchase requisition.
This note will not be copied in Request for Quotation, Purchase Order or
Contract.
Item Overview: Consists of PR line items which give summary level

information on the Material / services that are required. e.g. Title of work,
Plant etc
Item Details: Consists of different tab pages which give the detailed
information for each line item in the Item overview area.
These screens can be expanded/collapsed individually using the

‘Expand/Collapse’ icon, allowing you to determine which data is displayed to
you.

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2. Click on Possible Entries or Press F4 to display Document Types for the

PR.
Doc. Type Indicates the Purchase Requisition document type.
This is an identifier allowing differentiation between different kinds of
Purchase Requisitions in the SAP system.
The following Doc. Types are used.
NB: Purchase Requisn.
4. Exercise step: Update the following fields if not defaulted.

Field Name Values
Document Type NB

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5. Click Expand Header to maintain Header Note if required
Note:
In Header Note you can write specific instruction for the buyer related to this
Purchase requisition.
This note will not be copied in Request for Quotation, Purchase Order or
Contract.
6. Click Collapse Header to close the Header window.

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7. Click to Expand Item overview.
Field Description
Item Line item number of the PR
Acct. Ass. Cat. ( A ) Account Assignment Category - Determines which account
assignment data (Such as Cost Center, WBS Element, Order) is
necessary for Non Stock material. E.g. Capital Items
The following Account Assignment Category are used for Non-Stock
Materials:-
A – When the cost is to be posted against a Asset
K – When the cost is to be posted against a Cost Center
P – When the cost is required to be posted against a WBS Element.
F – When the cost is required to be posted against an Internal
Order or PM Works Order
N – Network
U – When the cost item is unknown and will decide later
Item Category ( I ) Item Category - Defines the procurement of a material or service
item.
The following Item category are used
– Standard
Material Alphanumeric key uniquely identifying the material.
Short Text A Short text of the Services to be provided. To be used in case if the
Material number is not used.

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Field Description
Quantity Quantity of the line item..
Unit of measure Unit of measure.
Delivery Date The date up to which the Material or Services are to be performed.
Purch. Organization 4 digits Code that denotes the Organization responsible for
arranging and finalizing the Contract.

Field Name Values
Material Use the same material no. you
created in EX.1
Quantity 100
Delivery Date Current date + 4 weeks
Plant 1000
Stor. Location 0001

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10. Click Enter

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11. Click Tab Material Data on the item view
Note:
This screen will display the Material number, Short text, the material Group
etc

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12. Click Tab Valuation
Note:
This screen will display the valuation price of the material and its currency.
This will default from Material Master
In case of creating PR for a material for the first time, the valuation price is
maintained manually.

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13. Click Tab Status

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Note:
Processing Status indicator N Not edited means the Purchase Requisition

has still not been further processed.
If Purchase Requisition had been processed to RFQ / Purchase Order /

Goods receipt for the Purchase Order then the system will display the
information as below,

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14. Click Tab Contact person

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15. Click Tab Text
Note:
If any text is maintained in the material master under tab Purchase Order text
then you can see the text under the tab Material PO Text.
Text maintained under any section will be highlighted by a green tick against
it on the right hand side of it.

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16. Click Tab Source of Supply
Note:
If the master data is maintained then the system will assign the source of
supply automatically through Material requirement planning (MRP)
If not maintained you can assign the source of supply manually.

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17. Click tab Quantities/Dates

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18. Click Check
The system displays the message “No message issued during check”

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Note:
You can add attachment to the item by selecting attachment
19. Click Save
The system displays the message “Purchase requisition number xxxxxxxxxx

created”
20. Note down the Purchase Requisition number
-------------------------------------
21. Click Exit till SAP Easy Access screen

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3. Create Purchase Order – ME21N

SCENARIO
Once the buyer has received the released purchase requisition, he can take action
for further processing.
After that the buyer will create a purchase order against this purchase requisition via
using T-Code ME21N.
INSTRUCTIONS
Purchase Order  Create  ME21N - Vendor/Supplying Plant Known
SAP Easy Access
1. Double click ME21N – Vendor/Supplying Plant Known

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Create Purchase Order
Document Type
Header
Data Screen
Area
Item Overview
Expand Screen Area
Collapse
icon
Item Details
Screen Area

Document Type This is an identifier allowing differentiation between different kinds of
Purchase Orders in the SAP system.
NB – Standard PO (This will always default for transaction code ME21N)
Vendor Code In this field you enter the code number of the vendor on whom you want to
place the PO.
In case you have to create PO based on an approved quotation,

the vendor code will be defaulted from quotation. Do not enter vendor code
at this stage.

Field Name Values
Document Type NB

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4. Click Enter

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Note:
The Create Purchase Order screen has three screen areas which can be
expanded / collapsed individually using the ‘Expand/Collapse’ icon, allowing
you to determine which data is displayed to you.
The first screen area is for Header Data. Here you can enter data that
relates to the PO as a whole (applicable to all items in the PO) e.g., vendor
code, payment terms, etc.
The second screen area shows Item Overview. Here you can enter the
items requisitioned, with the most important data relating to them (e.g.
material code, order quantity, and plant).
The third screen area is for Item Details. Here you can enter additional
data on individual items, e.g. detailed pricing conditions for an item
On the Item Overview screen area scroll the screen to right to get the fields for
Purchase Requisition and Requisition Item (requisition line item number). Enter
the numbers here and press ‘Enter’ to copy the requisition data into the Purchase
Order / Call off.

Field Name Values
Purchase Requisition Use the PR you created in EX.2
Purchase requisition 10
Item number

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6. Click Enter and scroll to the left to view the initial columns in the Item
overview window
The system displays the message “Enter purchasing org.”
Note:
You can see that all the details are copied from the purchase requisition in
the release order.
The system might give you warning message if applicable. In this case you
can see that since the price of PO is varying with respect to material master,
the system is giving you the information. To overcome this message click
Enter

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7. Information step: Item Overview

Status This field is not for data entry, but in this the system shows the status of the
line item of the PO, whether it contains any errors.
A red symbol indicates that there are errors, while a yellow symbol
indicates that there are only warning messages.

Field Name Values
Net Price 10
Purchase Organization 1000
9. Click Enter

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Field Name Values
Vendor 1000
11. Click Enter

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12. Click on Expand Item Details to display the details if not expanded

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13. Select Tab Delivery Schedule if not defaulted

Delivery date Date on which the goods are to be delivered or the service is to be
performed.
GR Qty Specifies the quantity already delivered to date for this item or schedule line.
Open Quantity Ordered quantity that is still to be delivered.
Note:
You can maintain date wise delivery schedule for an item.
In case the deliveries are required to be split based on different delivery

dates, enter the delivery date, required quantity, and reference PR number
for each split line item.(If referenced)

Suez Oil Company
SAP MM Overview
15. Select Tab Delivery

Stock Type Specifies the stock to which the material is posted upon goods receipt
To unrestricted use. This means no inspection is necessary on receipt of the

material.
To Quality Inspection (X). This means QI must clear the materials before
that can be posted to unrestricted use stock.
To Blocked stock (S).
For codified materials this will be defaulted from the master data.
Deliv. Compl. Indicates that the item is to be regarded as closed.

Suez Oil Company
SAP MM Overview
17. Select Tab Conditions
Note:
Tab Account Assignment:
This tab will appear only in case if an account assignment is selected for the
line item
This tab shows the account assignment data for the PO line item, like cost
center, G/L account, etc. This is applicable only for Direct charge or Non
Stock items.

Suez Oil Company
SAP MM Overview
18. Select Tab Texts

Suez Oil Company
SAP MM Overview

Tab „Texts‟ Text information applicable at item level (for individual items of the PO) can
be entered here.
Various text types are –
 Item Text
 Info Record PO Text
 Material PO Text
 Delivery Text
 Info Record Note
 Inspection Text.
For the text types that have been maintained, you see a tick next to the
text type.
The text entered in PR/quotation gets defaulted here. You can enter/edit the
text. Select the desired text type to display the text. If the text cannot be fully
displayed in the space provided, double-click within the space to get a full
screen area for typing text.
Material PO text Text maintained in material master which is common to all the vendors
supplying this material. Can be printed in PO

Suez Oil Company
SAP MM Overview
20. Select Tab Delivery Address
Note:
This screen will give the details of the address where the material is to be
delivered.
The plant address is defaulted in this tab.

Suez Oil Company
SAP MM Overview
21. Select Tab Confirmations

Suez Oil Company
SAP MM Overview
22. Click on Header to display the details

Suez Oil Company
SAP MM Overview
23. Select Tab Delivery/Invoice if not defaulted

Suez Oil Company
SAP MM Overview
24. Select Tab Conditions

Tab „Conditions‟ On this tab strip you see summary of pricing conditions for all the items of
the PO.
You can also enter additional pricing conditions (if any) applicable
commonly to the entire PO at Header level.
The fields are same as for item conditions; hence the explanation is not
repeated.

Suez Oil Company
SAP MM Overview
26. Select Tab Texts

Tab strip „Texts‟ In this tab you can maintain Header level texts, commonly applicable to the
entire PO. Various text types are available like Terms of Delivery,
Deadlines, etc. Process for maintaining the texts is same as for item texts,
hence not repeated.
Check all text types to confirm that the text copied is appropriate to the PO
Note:
You can maintain the Header text which is applicable for all the items within
the purchase order.

Suez Oil Company
SAP MM Overview
28. Select Tab Address to display the vendor‟s address

Tab „Address‟ This tab shows the address of the vendor.

Suez Oil Company
SAP MM Overview
30. Click Tab Org.Data

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SAP MM Overview
31. Click Status to display the details

Ordered Quantity to be delivered by the vendor for this Release Order / Call off.
Delivered Quantity delivered by the vendor for this Release Order / Call off.
Still to deliv. Quantity yet to be delivered
Invoiced Quantity invoiced
Down paymts Down payment made against this Release Order / Call off

Suez Oil Company
SAP MM Overview
33. Click Check for any wrong / missing entries in the Purchase order
The system displays the message “No message issued during check”

Suez Oil Company
SAP MM Overview
34. Click Save
The system displays the message “Standard PO created under the number
xxxxx”
35. Note down the PO number from the message bar.
-----------------------------------
36. Click Exit to exit the transaction

Suez Oil Company
SAP MM Overview
4. Goods Receipt for Purchase Order

SCENARIO
A purchase order was issued to a vendor after appropriate approvals.
The vendor now delivers the material for which you need to create the goods receipt
in SAP, so that further processing for payment can be done.
A goods receipt document needs to be created against the purchase order with
respect to the quantity received and where it will be stored
INSTRUCTIONS
Follow the Menu Path: Logistics  Materials Management  Inventory
Management  Goods Movement  MIGO - Goods Movement.

Suez Oil Company
SAP MM Overview
SAP Easy Access
1. Double click MIGO - Goods Movement (MIGO)

Suez Oil Company
SAP MM Overview
Release GR Blocked Stock Material Document
Note:
The screen display could vary depending on the display of previous

transaction.

Suez Oil Company
SAP MM Overview
2. Click Show Overview to display the PO‟s created by you
Note:
You can select the required purchase order number by a double click from
the overview screen or enter the PO number mentioned on the invoice.

Suez Oil Company
SAP MM Overview
3. Click on Hide Overview to hide the overview details

Field Name Values
Goods Receipt A01 – Goods Receipt
Options or Business
transaction
Reference Document R01 Purchase Order
Purchase Order # Use the PO you created in EX.3
Goods Movement 101 – GR goods receipt
Type
5. Click Enter

Suez Oil Company
SAP MM Overview
Goods Receipt Purchase Order xxxxx – xxxxx xxxxx

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SAP MM Overview
6. Click Sub Tab General in the Header data if not defaulted
Document Date The document date is the date on which the original document was issued.
Delivery Note Enter the vendors delivery note number against which the goods receipt is
being done.

Field Name Values
Delivery Note 12345

Suez Oil Company
SAP MM Overview
9. Click Tab Vendor to display the details

Suez Oil Company
SAP MM Overview
10. Click Tab Employee to display the details

Suez Oil Company
SAP MM Overview
11. Click Close Header Data to close the header sub window.
Note:
You can open the Header data sub window by a single click on Open header
data

Suez Oil Company
SAP MM Overview
12. Click Open detail data and click Tab “Material” if not defaulted

Suez Oil Company
SAP MM Overview
13. Select tab Quantity

Quantity in Unit of Entry Enter the quantity physically received and for which the good receipt is to be
posted.
The system proposes the open order quantity (quantity still to be delivered)
and the PO unit of measure from the reference PO.
Quantity in SKU / Check the quantity in stock keeping unit proposed by the system based on
Quantity ordered the conversion factor used in PO.
Also check the quantity ordered displayed by the system
Both the above fields are not editable at this stage.

Suez Oil Company
SAP MM Overview
15. Select tab Where

Movement Type Will be defaulted based on the entry made on the initial screen. Check if the
movement type is correct.
 101 – Goods receipt for purchase order into warehouse/stores
 103 - Goods receipt for purchase order into GR Blocked Stock
 105 – Release GR blocked stock for warehouse
 etc
Goods Recipient Specifies the recipient for whom the material or the service is destined..

Suez Oil Company
SAP MM Overview
Field Name Values

Goods recipient “write any name”
(Required / Mandatory
field)
18. Select tab Purchase Order Data

Suez Oil Company
SAP MM Overview

Purchase Order No. / Check the PO number and PO item number displayed on the screen.
PO Item No. Ensure that the right PO / PO Item is selected for posting the goods receipt.
Delivery Completed
Indicator Will be defaulted as based on the configuration
settings.
The indicator will then be set depending on the over / under delivery
tolerance allowed for the material and the total goods receipt quantity
against the reference PO.
20. Set Indicator for Item OK for all the line item for which
goods receipt is to be done and click Check to confirm the entries.
The system displays the message “Document is OK”

Suez Oil Company
SAP MM Overview
21. Click Save or Post to post the Goods Receipt
The system displays the message “Material document xxxxxxxxxx posted”
22. Note down the Material Document #
------------------------------
23. Click Exit to exit the transaction

Suez Oil Company
SAP MM Overview
Module: Tender/Contract Processes

(service)
 Create Request for Quotation
 Maintain Quotation
 Create Contract
5. Create Request for Quotation – ME41

SCENARIO
You want to invite several vendors for a price specification for a
material/service. You want to buy a material/service from a vendor.
(The Request for Quotation is a request to a vendor or several vendors to submit a

quotation or offers on specifications and or prices regarding the supply of
material/service)
INSTRUCTIONS
RFQ/Quotation  Request for Quotation  ME41 – Create

Suez Oil Company
SAP MM Overview
SAP Easy Access
1. Double click ME41 – Create

Suez Oil Company
SAP MM Overview
Create RFQ: Initial Screen

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SAP MM Overview
RFQ Type Identifier allowing differentiation between the various kinds of request for
quotation in the Sap system.
AN - Standard SAP RFQ
 Single Vendor.
 Collective number manually.
 NO Interface with E-Bidding system.
 NO Confirmation Indicator.
 Issue with no reference or with reference to PR.
Language The language key designates the language in which you display text, enter
text and print documents. Do not change this setting.
RFQ Date Date the RFQ was created. Defaults to current date
Quotation deadline Date by which the vendor is to submit the quotation.
Purchase Organization Purchasing organization responsible for buying purposes.
Delivery Date Delivery date should be later than Quotation submission date

Field Name Values
RFQ Type AN
Quotation Deadline Default date or Current Date + 2Wk
Purch. Organization 1000

Suez Oil Company
SAP MM Overview
4. Click Reference to PReq to reference a PR
Purchase req. Number of the Purchase Requisition which is to be referenced

Field Name Values
Purchase req. 10013563

Suez Oil Company
SAP MM Overview
7. Click Continue
The system displays the message “fill in all the required entry fields”

Suez Oil Company
SAP MM Overview
Coll. No. Number or code facilitating the collective management of a number of
individual RFQs (or inquiries)

Field Name Values
Coll. No. Tender1
10. Click Enter
Create RFQ: Selection List: Purchase Requisitions

Suez Oil Company
SAP MM Overview
11. Select the line item by a single click on the grey button to the left of it
Create RFQ: Selection List: Purchase Requisitions
12. Click Adopt + Details to copy the details

Suez Oil Company
SAP MM Overview
Create RFQ : Item xxxxxx

Deliver Date Date on which the goods are to be delivered or the service is to be
performed
Delivery date should be later than Quotation submission / deadline
date
14. Click Enter or

Suez Oil Company
SAP MM Overview
Create RFQ: Item Overview
15. Click Vendor Address to enter the vendor number for whom the RFQ is to
be issued.

Suez Oil Company
SAP MM Overview
Create RFQ: Vendor Address

Field Name Values
Vendor 1000

Suez Oil Company
SAP MM Overview
17. Click Enter
Note:
All Vendor’s Data will be automatically copied from vendor master
18. Click Save

Suez Oil Company
SAP MM Overview
Create RFQ: Vendor Address
The system displays the message “RFQ created under the number xxxxxxxxxx”
19. Note down the RFQ number
-----------------------------

Field Name Values
Vendor 2000

Suez Oil Company
SAP MM Overview
21. Click Enter

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SAP MM Overview
22. Click Save
The system displays the message “RFQ created under the number xxxxxxxxxx”
23. Note down the RFQ number
-----------------------------------

Suez Oil Company
SAP MM Overview
6. Maintain Quotations – ME47

SCENARIO
The user needs to maintain the quotation price received from vendor against an RFQ
(Request for Quotation). You also need to maintain the conditions of supply in the
quotation in SAP.
This will further help us for the price comparison with in the vendors and finally award
the contract / PO to the winner.
INSTRUCTIONS
RFQ/Quotation  Quotation  ME47 - Maintain
SAP Easy Access
1. Double click ME47 – Maintain

Suez Oil Company
SAP MM Overview
Maintain Quotation: Initial Screen
RFQ RFQ number for which you have to maintain the Quotation

Field Name Values
RFQ Use one of the RFQ you created
in EX.5

Suez Oil Company
SAP MM Overview
Note:
In SAP, the RFQ that you have sent to the vendor is converted to a
quotation, once you enter in it the vendor’s price and other terms and
conditions for supply.
The Quotation number in SAP is same as the individual RFQ number or
RFQ and Quotation are a single document in SAP
This transaction is to be used for entering a quotation or for making changes

to a quotation already entered.
The screens for maintaining Quotation are similar to the screens for creating
RFQ, with additional provisions for entering price and payment/delivery
terms.
4. Click Enter

Suez Oil Company
SAP MM Overview
Maintain Quotation: Item Overview
6. Click Services to maintain the price for the service.

Suez Oil Company
SAP MM Overview
Service Specifications: Quotation Specs for Item xxxxxxxxxxxx xxxx
Service No. Specifies the number of the service master record for which you want to
enter, change or display data and is defaulted from RFQ
Short Text Short description of the service and is Defaulted from RFQ
Quantity The quantity for which you want to maintain the quotation and defaulted
from RFQ
Unit Unit of measure at the higher item level. The precise quantities of the
individual services are each at the detailed service line level.
Gross Price Gross Price for the service needed
Crcy. Currency key for amounts in the system.

Field Name Values
Gross Price 1000

Suez Oil Company
SAP MM Overview

Suez Oil Company
SAP MM Overview
9. Click Back

Suez Oil Company
SAP MM Overview
11. Click Item Details to display the data maintained at item level

Suez Oil Company
SAP MM Overview
Maintain Quotation: Item xxxxxx
Note:
The Net price for the Quotation is defined for each unit
12. Click Back

Suez Oil Company
SAP MM Overview
13. Click Header Details to display the data maintained at header level

Suez Oil Company
SAP MM Overview
Maintain Quotation: Header Data

Payment Terms This is a key that defines the terms for making payment to the vendor for
materials supplied, like, in how many days you make the payment, whether
you pay any advance, etc.
Currency The currency in which the vendor has quoted the prices.
Incoterms Incoterms are the commonly used trading terms that comply with the
standards established by the International Chamber of Commerce (ICC).
These define the terms of delivery of goods.
15. Click Overview

Suez Oil Company
SAP MM Overview
16. Click Save

Suez Oil Company
SAP MM Overview
Maintain Quotation: Initial Screen
The system displays the message “Quotation for xxxxxxxxxx maintained”
17. Similarly maintain the other RFQ with price as 1500 .

Suez Oil Company
SAP MM Overview
Note:
Use the same transaction code ME47 if you need to make any changes to
the Quotations which are already maintained.
Similarly you can use the transaction code ME48 to display the Quotation.
The menu path for the same is as below,
Logistics  Materials Management  Purchasing  RFQ/Quotation 

Quotation  ME48 - Display

Suez Oil Company
SAP MM Overview
7. Create Contract – ME31K

SCENARIO
After technical and commercial evaluation, one or more bidder will be awarded the
contract.
You now need to create a contract for a vendor (winner) to supply of material/service
based on the agreed quotation.
Actual supply of services/materials can be made only against call off orders /
Release Orders that are to be released with reference to the contract.
INSTRUCTIONS
Outline Agreement  Contract  ME31K - Create
SAP Easy Access
1. Double click ME31K – Create

Suez Oil Company
SAP MM Overview
Create Contract: Initial screen
Header Data
Organizational
Data
Default Data
for Items
Vendor This field is for the code number of the vendor on whom you are going to
create the Contract.
When you create Contract with reference to an RFQ, the vendor code will
get defaulted from the RFQ. Therefore do not make any entry in this field at
this stage.
Agreement type This key is used to select the type of contract you want to create.
Agreement Type is an identifier allowing differentiation between the various
kinds of Outline Agreements in the SAP system.
e.g.
 MK – (Qty Agreement) In this you specify the target quantity to be
procured during Contract period.
 WK – (Value Agreement) In this you specify the target Value to be
procured during Contract period.
Agreement date This is the date on which the contract is created. The system will default the
current date here.

Suez Oil Company
SAP MM Overview
Field Name Values

Agreement type WK
Purchasing 1000
Organization
Note:
The Contract data is divided into three main screens: Create Contract –
Header Data screen – This screen contains the Header data of the Contract,
that is, data that pertains to the whole Contract (common to all the items of
the Contract). For example, payment terms, validity period.
Create Contract: Item Overview Screen - This screen lists all the items
included in the Contract and the data related to them, like material code
number, short text for material or service, quantity, etc.
Create Contract: Item Details Screen – This screen contains additional

details related to individual items, like vendor material number, shipping
instructions, etc. In addition to these main screens, there are other screens
like ‘Create Contract: Pricing Conditions screen, Create Contract: Item Texts
screen, Create Contract: Header Texts screen, etc.

Suez Oil Company
SAP MM Overview
4. Click Create Referencing RFQ to copy data from the

reference RFQ
Note: You use this button for referencing the RFQ for which you are creating
the contract. By referencing the RFQ the data from the RFQ is copied to the
contract.
From RFQ item Line item of the RFQ which is to be referred
To RFQ item End Range up to which the line items are to be referred

Field Name Values
RFQ Use the same RFQ no. in EX.6
From RFQ item 10

Suez Oil Company
SAP MM Overview
7. Click Continue within the pop-up screen
Create Contract: Header Data
The system displays the message “Fill in all required entry fields”
Validity Start The validity start date of the contract.
Validity end The validity end date of the contract.
Payment terms Key for defining payment terms composed of cash discount percentages
and payment periods.
Target Value This is total value of all materials to be procured against the contract.
If this value is exceeded, the user receives a system message when
creating a Release Order / Call off order against the Contract.
This field is not mandatory when the document type is,
WK-Value Contract

Suez Oil Company
SAP MM Overview

Field Name Values
Target Value 100000
Validity End 31.12.2011
10. Click Enter
Create Contract: Overview: Reference Document Items

Suez Oil Company
SAP MM Overview
11. Select line Item 10 by a single click on the grey button to the left of it
Note:
Similarly select the other line items if they are more than one in the quotation.

Suez Oil Company
SAP MM Overview
Note:
You can adopt the selected RFQ line items into the Contract in two ways –
Adopt using the “Adopt’ button” that offers you all the selected items
together directly in the „Item Overview‟ screen.
Adopt using the button “Adopt + Details” which offers you the
selected items for editing one by one, in the Item Details screen „Create
RFQ: Item Details‟.
12. Click Adopt + Details to copy the details from the quotation
Create Contract: Item xxxxx

Suez Oil Company
SAP MM Overview
13. Click Enter
Create Contract: Item Overview

Suez Oil Company
SAP MM Overview
14. Click Services to maintain the price for the service.

Suez Oil Company
SAP MM Overview
15. Click Back

Suez Oil Company
SAP MM Overview
16. Select the line item 10 by a single click on the grey button to the left of it

Suez Oil Company
SAP MM Overview
17. Select from the menu bar Item  Statistics  General to display the details
18. Click General

Suez Oil Company
SAP MM Overview
Create Contract: Statistics for Item xxxxx
19. Click Back

Suez Oil Company
SAP MM Overview

Suez Oil Company
SAP MM Overview
and click from the menu bar Item  Text  Text Overview to display the text
if maintained
21. Click Text Overview

Suez Oil Company
SAP MM Overview
Create Contract: Text for Item xxxxx
Note:
You can find the text maintained for the contract at the corresponding line
item level.
22. Click Back

Suez Oil Company
SAP MM Overview

Suez Oil Company
SAP MM Overview
and click from the menu bar Item  More Functions  Additional Data to display
the details
24. Click Additional Data

Suez Oil Company
SAP MM Overview
Create Contract: Item xxxxx Additional Data

GR Proc. Time Number of workdays required after receiving the material for inspection and
placement into storage.
26. Click Back

Suez Oil Company
SAP MM Overview

Suez Oil Company
SAP MM Overview
27. Select from the menu bar Header  Statistics  General to display the
details
28. Click General

Suez Oil Company
SAP MM Overview
Create Contract: Header Statistics
29. Click Overview

Suez Oil Company
SAP MM Overview

Suez Oil Company
SAP MM Overview
30. Select from the menu bar Header  Texts  Text Overview to display the
text if maintained
31. Click Text Overview

Suez Oil Company
SAP MM Overview
Create Contract: Header Texts
32. Click Back

Suez Oil Company
SAP MM Overview
33. Click Save

Suez Oil Company
SAP MM Overview
Create Contract: Initial Screen
The system displays the message “xxxxx Contract created under the number
xxxxxxxxxx”
34. Note down the contract number displayed immediately after saving the contract
in the information bar.
---------------------------------------


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SUCO SAP PROJECT PHASE I

May 18, 2011

MATERIALS MANAGEMENT OVERVIEW 1 of 149

OVERVIEW: MATERIALS MANAGEMENT OVERVIEW ........................................... 3

MODULE: MASTER DATA....................................................................................... 14

1. Create Material Master– MM01............................................................................................................. 14

MODULE: PROCUREMENT PROCESS .................................................................. 35

2. Create Purchase Requisition for Stock Material – ME51N ........................................................... 35

3. Create Purchase Order – ME21N ........................................................................................................ 53

4. Goods Receipt for Purchase Order .................................................................................................... 77

MODULE: TENDER/CONTRACT PROCESSES (SERVICE)................................... 93

5. Create Request for Quotation – ME41 ............................................................................................... 93

6. Maintain Quotations – ME47 .............................................................................................................. 108

7. Create Contract – ME31K .................................................................................................................... 122

Effective Date: 5/18/2011 MM02 - Training Manual

Overview: Materials Management Overview

This module highlights the key points from the presentation.

Materials Management Overview

Effective Date: 5/18/2011 MM02 - Training Manual

 Data maintained at different levels:

Effective Date: 5/18/2011 MM02 - Training Manual

Views in the Material Master

 Basic data 1 and II

Material Requirements Planning 1

Effective Date: 5/18/2011 MM02 - Training Manual

Material Requirements Planning 2

Plant Storage Data

Text is maintained under:

Effective Date: 5/18/2011 MM02 - Training Manual

Effective Date: 5/18/2011 MM02 - Training Manual

Creation of Purchase Requisition

Texts Tab in Header

Item Overview Characteristics

Request for Quotations

Request for Quotation

Effective Date: 5/18/2011 MM02 - Training Manual

Purchase Order Processing

Purchase Order Process

Effective Date: 5/18/2011 MM02 - Training Manual

Purchase Order Header Data

Item Overview Characteristics

Effective Date: 5/18/2011 MM02 - Training Manual

Result of Goods Receipt Posting

Goods Receipt: MIGO Transaction

Effective Date: 5/18/2011 MM02 - Training Manual

Goods Receipt : MIGO Transaction

Effective Date: 5/18/2011 MM02 - Training Manual

Effective Date: 5/18/2011 MM02 - Training Manual

Module: Master Data

At the conclusion of the exercises, you will be able to:

1. Create Material Master– MM01

Effective Date: 5/18/2011 MM02 - Training Manual

SAP Easy Access

1. Double click MM01 – Immediately

Effective Date: 5/18/2011 MM02 - Training Manual

Create Material (Initial Screen)

Industry Sector The branch of industry to which a material is assigned

3. Exercise step: Update the following fields:

Effective Date: 5/18/2011 MM02 - Training Manual

Effective Date: 5/18/2011 MM02 - Training Manual

5. Select the Views by clicking on the grey button next to them

Effective Date: 5/18/2011 MM02 - Training Manual

6. Click Organizational levels within the Pop-up screen