Sap S4 Hana MM

SAP S4 HANA MM
SAP Material Management (MM) Simplified

Material Management Notes
Course Audience:
 SAP End-Users
 SAP Consultants
 Non-SAP Users/Beginners
What You’ll Learn:
1. Complete Configuration
2. Complete End-User Testing
Faculty: Mohammed Rashid Email: sap.rashid@yahoo.com

Few Industry Specific:

IS- RETAIL
Technical Modules:
IS- UTILITIES
IS- OIL & GAS
Basis – Installation, User id, authorization IS-MINING
ABAP- Programming SAP IS-BANKING
IS-AFS
MM - Material Management
SD – Sales & Distribution

Material Management (MM Module)
Few Real-time Business Process flows:
 To Manage Inventory on Quantity & Value Base
 Service Procurement
 Consignment Procurement
 Sub-contract Procurement
 Third-party Procurement
 Outline Agreement
 Stock Transfer
o Plant to Plant with company code
o Cross Company Code Transfer
 Invoice Verification Scenarios

Typical SAP Landscape:
Server 1 Server 2 Server 3

192.168.75.100 192.168.75.141 192.168.75.143
Enable Disable Disable

Customization Purpose Testing Purpose Live Data
Transport Request: it will be used for moving configuration/development from one client
to another

SAP Credentials: ask your client / employer for below credentials.
Application Server : 192.168.75.100 192.168.75.141 192.168.75.143

Instance Number : 00 01 02
System ID : DEV QAS PRD
Opening of SAP: To open SAP Click on the SAP Logon Icon on Desktop

What is Session?
One Window = one Session
A session is a window or screen where SAP user will do day to day activities. One user can
open 6 Sessions at a time.
How to Create New Session:

To create new session path is
Menu Bar---->System---->Create Session OR
Click on “Create New Session” Button

How To Move From One Session To Another:

Press Alt+Tab to move from One session to another session easily
How to Close a Session:

To close one session path is
Menu Bar---->System---->End Session OR
/I (Forward Slash + “ I ”)
What is Transaction Code (TC) ?

Transaction Code is a code number given for each activity. SAP has given standard
Transaction Codes ( TC's ) which are common in SAP through the world .like
Tcode Use
FS00 Create General Ledger Accounts
BP Business Partner
If SAP Customer / Purchaser want to give their own TC's it should start either with "Y" or
"Z". Other Alphabets are not allowed in SAP. These are called ‘Z-Transaction Code’
Example: Developed new Report for Customer Statement. Since it is a custom Report, we
have to assign new T.Code starting with letter either “Y” or “Z” like ZCUST_STMT.
Going Back To SAP Easy Access Screen:

Click on Back Arrow Button OR
Use /N (Forward Slash & N) in Command Window. N is not case sensitive
Activating Transaction Codes in SAP Menu (User specific settings)

Sometimes TC's will not appear in SAP Easy Access Menu.
To activate them path is
Menu Bar---->Extras---->Settings-
Select Technical Names Check Box and Press Enter

How to Set Start Transaction Window:

Making 1 session as default screen is called Start Transaction.
To Set start transaction

Menu Bar---->Extras---->Set Start Transaction---->
Transaction Code = FB50 Press Enter
We will get message FB50 as start Transaction.
From next time onwards whenever SAP is logged in, FB50 session will open directly.
How to Close SAP: For closing SAP path

Menu Bar---->System--->Log Off ----> YES for the message Log Off OR
/NEX
UNLOCKING SCREENS: - SM12

Create / Change/ Display
There are few transactions, only one user can access at a time.
If one user is accessing the T.Code (Transaction Code) in CREATE Mode other User can
only use as in display mode .
If we want, we can kill that session from transaction code called SM12.
This T.Code should not be used in real-time means Production System
Find Path for T. Code “FS00”

Press CNTR + F ---- >
Find = FS00 Press Enter

Organization Structure:
In SAP:
Corporate Group = Client

Client is the highest Organizational Unit in SAP System. Since Two Companies are part of the same
group, they should be implemented in same client.
Trading Company = Company Code

IT Consulting Company = Company Code
In general, we call legal entities as Company where as in SAP we call them as COMPANY CODE.
COMPANY Code is a legal Entity responsible for preparing Financial Statement such
Income Statement
Balance Statement
Cash Flow Statement & other supporting Schedules
Manufacturing & Selling Facility = Plant

In Sap , Plant may be a
 Manufacturing Facility,
 Sales Office,
 Corporate Head Office,
 Central Distribution Center etc.
Raw-Material, Finished Goods, Scrap Material = Storage Location
Storage location is a place within the Plant where materials are kept.
Purchasing Organization: in SAP, we call Purchasing Department as Purchasing Organization. It is

responsible for dealing with Vendors and responsible for all procurement activities. Such.
 Price Negotiations
 Terms of payment
 Contracts and Scheduling Agreements etc.
Purchasing Organization may be
1. Plant Specific: if all procurement activities are done at plant for meeting its requirement then we
should create plant specific Purchasing Organization.
One Plant = One Purchasing Organization
2. Cross Plant: single procurement Purchasing organization is responsible for procurement activities of
more than one plant then we should create CROSS PLANT purchasing Organization.
Two Plant = One Purchasing organization
3. Cross Company Code: one purchasing organization for multiple plants of different company
code.

Two or more company code = One Purchasing Organization
4. Reference Purchasing Organization:

 Central purchasing organization created at Corporate Group level and responsible for negotiation
and creation of global agreements.
 Agreements created by Reference Purchasing Organization will be used by Purchasing Org created
at plants levels.
5. Standard Purchasing Organization:

 this is required during automatic purchase order creation.
 Also required for certain business process like pipeline procurement, consignment etc
Purchase Groups: individual or Group of individual responsible for creating Purchase Order or Contracts

Organization Structure:
Purchasing Org
Basic Configuration Steps
1. Edit, Copy, Delete, Check Company Code – Tc- EC01
2. Define valuation level- Tc – OX14
3. Define, copy, delete, check plant – Tc- OX10
4. Define, copy, delete, check division -Tc- OVXB
5. Assign plant to company code- Tc – OX18
6. Group Together Valuation Areas
7. Maintain Storage Location – Tc- OX09
8. Create Purchasing Organization – Tc- OX08
9. Assign purchasing organization to company code- Tc – OX01
10. Assign purchasing organization to plant- Tc – OX17
11. Assign standard purchasing organization to plant – Tc - OMKI
12. Maintain Company Codes for Materials Management – Tc OMSY

1. Edit, Copy, Delete, Check Company Code – Tc- EC01
IMG-->Enterprise Structure-->Definition-->Financial Accounting-->Edit, Copy, Delete, Check

Company Code
Click on Copy, delete, check company code

Click on Copy Org.Object
From Company Code = ( Take any Standard Template Company Codes given by SAP)
To Company Code = Press Enter
Do you want to copy the G/L account company code data? Click on Yes
Do you want to allocate a different local curr.to target company code? Click on Yes
Do you want to copy the assignment to the controlling area? Click on Yes
Customizing settings inconsistent Press Enter
Transport Number Ranges Press Enter
Do you really want to transport number ranges? Click on Yes
Click on Create Transport Request

Short Description =
Press Enter
Press Enter
Note: Press Enter until you get a message “Company Copied to ”
Click on “Completed Activities” and Check the status

Click On Back Button
Click on “Edit Company Code Data”

Click on Position
Company Code = Press Enter
Double Click on Company Code
Company Name =
City =
Country =
Currency =
Language = Click on Save & Press Enter
Ignore Warning Message & Press Enter
2. Define valuation level- Tc – OX14
IMG-->Enterprise Structure-->Definition-->Logistics - General-->Define valuation level

Select Valuation Area is a Plant
Note: Valuation Area Configuration cannot be changed later. If Production Planning or Product
Costing in CO Module is implemented then we should select “Valuation Area is a Plant”
3. Define, copy, delete, check plant – Tc- OX10
IMG-->Enterprise Structure-->Definition-->Logistics - General-->Define, copy, delete, check plant

Double Click on “Define Plant”
Click on “New Entries”

Plant =
Name 1 =
Factory Calendar = Click on Save
Title =
Name =
Country =
Language = Press Enter

Plant =
Name 1 =
Factory Calendar = Click on Save
Title =
Name =
Country =
Language = Press Enter
4. Define, copy, delete, check division -Tc-OVXB
IMG-->Enterprise Structure-->Definition-->Logistics - General-->Define, copy, delete, check division

Division =
Name = Click on Save
It is a way to group similar products or product lines in SAP. A division is also one of
the rules used by SAP to determine the sales area.
5. Assign plant to company code- Tc – OX18
IMG-->Enterprise Structure-->Assignment-->Logistics - General-->Assign plant to company code

Company Code Plant
Click on Save

6. Group Together Valuation Areas- Tc - OMWD
IMG-->Materials Management-->Valuation and Account Assignment-->Account Determination--

>Account Determination Without Wizard-->Group Together Valuation Areas
Click on Position
Valuation Area = Press Enter

Valuation Grouping Code =
Valuation Grouping Code = Click on Save
In real-time , it will be done by FI Consultant for mapping General Ledger for postings.
Take valuation Grouping Code from “Copied Company Code”
7. Maintain Storage Location – Tc-OX09
IMG-->Enterprise Structure-->Definition-->Materials Management-->Maintain storage location
Plant = Press Enter

0001 Finished Goods
0002 Damaged Goods
Click on Save
Click on Back Button
Plant = Press Enter

0001 Back Office
0002 Store
0003 Display
Click on Save

Note: If address of the storage location is different from Plant Address, you can update here
8. Create Purchasing Organization – Tc-OX08
IMG-->Enterprise Structure-->Definition-->Materials Management-->Maintain purchasing

organization
Purchase Org =
Purchase Org Description = Click on Save
9. Assign purchasing organization to company code- Tc – OX01
IMG-->Enterprise Structure-->Assignment-->Materials Management-->Assign purchasing

organization to company code
Click on Position
Purchasing Org. = Press Enter
Company Code = Click on Save
10. Assign purchasing organization to plant- Tc – OX17
IMG-->Enterprise Structure-->Assignment-->Materials Management-->Assign purchasing

organization to plant

Purchasing Org Plant
Click on Save

11. Assign standard purchasing organization to plant – Tc - OMKI
IMG-->Enterprise Structure-->Assignment-->Materials Management-->Assign standard purchasing

organization to plant
Click on Position
Plant = Press Enter
Purchase Org = Click on Save
Note: Assign the Same Purchase Organization to both plants.
12. Maintain Company Codes for Materials Management – Tc - OMSY
IMG-->Logistics - General-->Material Master-->Basic Settings-->Maintain Company Codes for

Materials Management
Click on Position
Year =
Period =
Select “Allow Posting to Previous Period” Check Box Click on Save
13. Create Purchasing Groups-Tc- OME4
IMG-->Materials Management-->Purchasing-->Create Purchasing Groups
Purchase Group Description
Click on Save

14. Check Below Table before doing controlling area configuration – Tcode SE16N
Table = TKA02
Company Code = Press Execute
If you found any entry for your newly created company code in this table then ignore below
Controlling Area Configuration from STEP 15 To 17
15. Check Chart of Accounts and Fiscal year Variant – OBY6
Note down below information
Chart of Account =
Fiscal Year Variant =
16. Maintain Controlling Area Path: TC - OKKP
IMG - Controlling - General Controlling - Organization - Maintain controlling area

Double Click "Maintain Controlling Area”
Click "New entries"

Controlling Area =
Controlling Area Name = Controlling Area
Company Code to Controlling Area = Cross Company Code Cost Accounting
Currency type = 30 (Group Currency)
Cost center standard hierarchy = H1_CC
Click Save and Yes.
Double Click "Assignment of Company Codes"

Click "New entries",
Company Code =
Click Save
Double Click "Activate Components / Control Indicators"
Click on New Entries Fiscal Year =

Cost centers = Component active
Select “AA: Activity type” (AA: Account Assignment)
Order Management = Component active
Select All currencies
Select variances
Click Save
Note: “All Currencies” if you don’t select now, it can’t be activated later.
17. Maintain versions -TC - OKEQ

IMG-->Controlling-->General Controlling-->Organization-->Maintain Versions
Select Version “O”, Double Click "Settings for each Fiscal Year"
CO Area = Press Enter and Save

Vendor Master Configuration:
1. Define Account Groups with Screen Layout (Vendors) OBD3
2. Create Number Ranges for Vendor Accounts XKN1

3. Assign Number Ranges to Vendor Account Groups OBAS
4. Create Vendor Master XK01
1. Define Account Groups with Screen Layout (Vendors)- TC -OBD3
IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-->Vendor Accounts--

>Master Data-->Preparations for Creating Vendor Master Data-->Define Account Groups with
Screen Layout (Vendors

Name = Click on Save
2. Create Number Ranges for Vendor Accounts – TC -XKN1

>Master Data-->Preparations for Creating Vendor Master Data-->Create Number Ranges for
Vendor Accounts
Click on “Change Intervals”

Click on “Insert”
No =
From No =
To No =
Check “Ext” Check Box Click on Save & Press Enter

3. Assign Number Ranges to Vendor Account Groups – TC -OBAS

>Master Data-->Preparations for Creating Vendor Master Data-->Assign Number Ranges to Vendor
Account Groups
Click on Position
Account Group = Press Enter
Number = Click on Save
4. Vendor Master Data: XK01
Company Code =
Purchasing Organization =
Account group = Press Enter
Title =
Name =
Country = Press Enter 3 times
Reconciliation Account = Press Enter

Payment Terms = Press Enter 3 times
Order currency =
Terms of paymnt =
Select GR based Invoice Verification = Click on Save
Create Two More Vendor Accounts

Material Master Configuration
Steps:
1. Define Attributes of Material Types – Tc- OMS2
2. Quantity/value updating
3. Define Number Range for New Material Type- Tc- MMNR
4. Define Material Groups- OMSF
5. Create Material Master – Tc – MM01
Material Types: Price Control

a) Raw Material (ROH) V-Moving Average Price-Purchase Cost
b) Stores and Spares (ERSA) V-Moving Average Price-Purchase Cost
c) Packing Material (VERP) V-Moving Average Price-Purchase Cost
d) Finished Goods (FERT) S-Standard Price+Rawmaterial Cost+Overhead
e) Semi Finished Goods (HALB)
i. Purchased V-Moving Average Price-Purchase Cost
ii. Produced S-Standard Price+Rawmaterial Cost+Overhead
f) Traded Goods (HAWA) V-Moving Average Price-Purchase Cost
g) Services (DIEN)
1. Define Attributes of Material Types – Tc- OMS2
IMG-->Logistics - General-->Material Master-->Basic Settings-->Material Types-->Define Attributes

of Material Types
Click on Position
Material Type = ROH Press Enter
Select Material Type and Click on Copy Button
Material Type =
Description =
Deselect “External No. Assignment w/o Check” Box Click on Save

Click on Position
Material Type = HALB Press Enter
Select Material Type and Click on Copy Button
Material Type =
Description =
Deselect “External No. Assignment w/o Check” Box Click on Save
2. Quantity/value updating
Select Newly Create Account Group and Click on “Quantity/value updating”

Click on Position
Valuation Area =
Material Type = Press Enter
Select “Quantity Updating “Check Box

Select “Value Update “ Check Box
Note: Repeat the same steps for all newly created material types
3. Define Number Range for New Material Type- Tc- MMNR
IMG-->Logistics - General-->Material Master-->Basic Settings-->Material Types-->Define Number

Ranges for Each Material Type
Raw Material 100000 To 199999

Trading Goods 200000 To 299999
Click on “Change Groups”

Click on “Create Group”
Group = Raw Material Number 8800
No =

From =
To = Click on Save & Press Enter
Click on “ Find or CTRL+F”
Find = ( Enter Newly Create Material Type here)
Press Enter
Double Click on Material Type
Click on “Assign Element To Group”
Select or Click on Newly Created Group Click on “Copy”
Click on Save
Click on “Create Group”

Group = Trading Goods Number 8800
No =
From =
To = Click on Save & Press Enter
Click on “ Find or CTRL+F”
Find = ( Enter Newly Create Material Type here)
Press Enter
Double Click on Material Type
Click on “Assign Element To Group”
Select or Click on Newly Created Group Click on “Copy”
Click on Save
4. Define Material Groups- OMSF
IMG-->Logistics - General-->Material Master-->Settings for Key Fields-->Define Material Groups
Click on New Entries

Material Group Description
Click on Save

5. Create Material Master – Tc – MM01 Create MM01

Change MM02
Display MM03
Change History MM04
Industry Sector =
Material type = Press Enter
Select below Views
Basic Data 1
Purchasing
General Plant Data / Storage 1
Accounting 1
Press Enter
Plant =
Stor. Loc. = Press Enter
Description =
Base Unit of Measure =
Material Group = Press Enter
Purchasing Group = Press Enter 2 times
Division =
Valuation Class = Click on Save
Ignore Warning Message & Press Enter

Do you want to save your data for this material first? Click on Yes
6. Check Material Masters – MM60
Plant = Execute

FI/MM Posting Periods

Month End Activities
1. Check FI Posting Period Variant for your Company Code OBY6

2. Open FI Posting Periods OB52
3. Check Which MM Posting Period is Open MMRV
4. Open MM Posting Period MMPV
5. Check Which MM Posting Period is Open MMRV
OB52 MMPV
Note: in real time, it will be done by End-Users as monthly activity. If we don’t open posting period
System will through Error Message
1. Check FI Posting Period Variant for your Company Code – TC – OBY6
Click on Position
Double click on Company Code
Posting Period Variant = (Note Down PPV)

2. Open FI Posting Periods – TC -OB52
Pstng period variant = Press Enter

Click on “Select All” and Delete Press Enter
Click on Save ( don’t forget to save )

Account Type =
From Period 1 =
Year =
To Period 1 =
Year = Click on Save
3. Check Which MM Posting Period is Open - TC -MMRV

Note Down Open Period =
Note: If open Period is not equal to current month then Open Current Period from-TC – MMPV
4. Open MM Posting Period- TC – MMPV
From company code =

Period =
Fiscal year =
Select “Check and Close “Check Box Click on Execute or F8
5. Check Which MM Posting Period is Open - TC -MMRV

Info Records or Condition Record
Vendor No Material No Price
X ABC 100
Y ABC 102
Z ABC 103
1. Create Info Record - Tc – ME11

Vendor =
Material =
Purchasing Org =
Plant =
Select “Standard “Radio Button Press Enter
Pl. Deliv. Time =

Purch. Group =
Standard Qty =
Net Price = Currency =
Click on Save
Based on this info Record System will pick procurement Price at the time of Create Purchase
Order
Info Record Report – ME1M

Procure To Pay Cycle (P2P)
Purchase Requisition Purchase Order
Approval
Goods Receipt Invoice Verification Payment
FI Document Type WE RE KZ
Inventory A/c Dr GR/IR A/c Dr Vendor A/c Dr

To GR/IR A/c Cr To Vendor A/c Cr To Bank A/c Cr
Process Steps:
1. Purchase Requisition(PR) ME51N PR PO
2. Create Purchase Order ME21N Create ME51N ME21N
3. Check Purchase Order Report ME2N
Change ME52N ME22N
4. Purchase Order Approval ME29N
Display ME53N ME23N
5. Goods Receipt-TC MIGO
6. Check Posted FI Document FB03
7. Check Posted MM Document MB03
8. Check Stock Report MB52 (Dynamic Report)
9. Check GR/IR Line Item Report FBL3N
11. Invoice Verification MIRO
12. Check GR/IR Line Item Report FBL3N
14. Check Vendor Report FBL1N
15. Payment to Vendor F-53

16. Check Vendor Report FBL1N
1. Create Quotation – ME51N
Material NO Po Qty Plant Storage location
Click on Save
2. Create Purchase Order- ME21N
Order Type =
Vendor =
Purchase Org =
Purchase Group =
Company Code =
Material NO Po Qty Plant Storage location
Click on Save
PO NO = (Note Down)

3. Goods Receipt-TC- MIGO
Transaction / Event =
Purchase Order = Press Enter
Select Item is OK for all material Click on Post
Report Layout:
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Request For Quotation
Net
Vendor Material Price Discount % Price
A 100 10 90.00
B 105 12 92.40
C 101 6 94.94

Purchase Requisition RFQ Purchase Order
Approval
Process Steps:
1. Create Quotation- ME51N
2. Create RFQ ME41
3. Display & Print RFQ ME9A
4. Check Spool Request SP01
5. Receive Price info from vendor
6. Maintain Quotation ME47
7. Price Comparison ME49
8. Reject Unwanted Quotations
9. Print Rejection Letters ME9A
10. Check Spool Request SP01
11. Create Purchase Order ME21N
12. Goods Receipt MIGO

PO Release Strategy
Value < 100 Y1 Supply Chain Manager (A1)
Supply Chain Manager (A1)

Value Between 101 To 500 Y2 Business Unit Head (A2)
Value > 501 Y3 Supply Chain Manager (A1)

Business Unit Head (A2)
Finance Manager (A3)
Criteria:
Characteristic Characteristic Value
Order Value = Value < 100
Value Between 101 To 500
Value > 501
Document Type = NB
Purchasing Org = 8800
Company Code = 8800
Plant = 8801
Purchase Requisition:
1. Header Level (With Classification) - Any Field Can be used as criteria
ABAP Structure ---- CEBAN
2. Item Level (without Classification) – only limited fields available here

 Account Assignment Category
 Material Group
 Plant
 Value
RFQ/ Outline Agreement /Purchase Order:

1. Header Level (With Classification) - Any Field Can be used as criteria
2. ABAP Structure ---- CEKKO

Configuration Steps:
1. Gather Technical Name for Characteristics - SE11
2. Create Characteristic – CT04
3. Create Class (Folder)
4. Create Release Groups
5. Create Release Codes-
6. Release indicators
7. Create Release Strategies
End-User Testing
1. Create Purchase Requisition – ME51N
3. Release Purchase Order ME29N / ME28(COLLECTIVE)
4. Receive Goods MIGO
1. Gather Technical Name for Characteristics - SE11

ABAP Structure for Requisition---- CEBAN
ABAP Structure for Purchase Documents ---- CEKKO
Order Value =
Document Type =
Purchasing Org =
Company Code =
Plant =

2. Create Characteristic – CT04

IMG-->Materials Management-->Purchasing-->Purchase Order-->Release Procedure for
Purchase Orders-->Edit Characteristic
PO Value --
Characteristic = Click on Create Button
Click on Additional Data
Table Name =
Field Name = Press Enter
Currency =
Select “Multiple Value” Check box

Select “Intervals Allowed” Check box
Click on “Values Tab”

Characteristic Value
Click on Save
Document Type
Table Name =

Click on Save

Purchase Org
Table Name =

Click on Save
Company Code
Table Name =

Click on Save
Plant
Table Name =

Click on Save
3. Create Class (Folder)

IMG-->Materials Management-->Purchasing-->Purchase Order-->Release Procedure for Purchase
Orders-->Edit Class
Class = Click on Create Button
Class Type = 032
Description =
Click on Char Tab

Chart
Click on Save
4. Create Release Groups

IMG-->Materials Management-->Purchasing-->Purchase Order-->Release Procedure for Purchase
Orders-->Define Release Procedure for Purchase Orders
Double Click on “Release Groups”
If you have any entries here, already defined by others you need to delete all entries
else you cannot proceed further.
Release Group Class Description
Click on Save

5. Create Release Codes-

Same Path
Group Code Description
Click on Save
6. Release indicators
Same path
Release ID = B -- block
Changeable =
Description =
Release ID = R-- release

Changeable =
Description =
Click on Save
7. Create Release Strategies

Same path
Release Group =
Release Strategy =
Description = Value <100

Release Codes
Click on “Release Prerequisites”
Click on “Classification”
Order Value =
Document Type =
Purchasing Org =
Company Code =
Plant = Click on Back Button & Save
Click on Next Entry
Release Group =
Release Strategy =
Description = Value >101 To <500
Release Codes

Order Value =
Document Type =
Purchasing Org =
Company Code =
Click on Next Entry
Release Group =
Release Strategy =
Description = Value >501
Release Codes
Order Value =
Document Type =
Purchasing Org =
Company Code =

End-User Testing
1. Create Purchase Requisition – ME51N
3. Release Purchase Order ME29N / ME28(COLLECTIVE)
4. Receive Goods MIGO

Consumable Material
Examples:
Stationary
Pen
Pencil
Notebooks Etc.
Consumable Goods:
Approval
Inventory A/c Dr
To GR/IR A/c Cr
Expenses A/c Dr GR/IR A/c Dr

To GR/IR A/c Cr To Vendor

1. Account Assignment Categories – OME9

IMG-->Materials Management-->Purchasing-->Account Assignment-->Maintain Account
Assignment Categories
2. Create Number Ranges for Controlling Documents – KANK

Controlling Area =
Click on “Maintain Group”
Click on Group & Insert

Text =
Number From =
Number To = Press Enter
Search “COIN” Business Transaction

Double click on COIN
Select Newly Created Number Group
Click on Assign Element and Save
3. Create Cost Centers

Cost Center = 1000
Valid From = Valid To =
Press Enter
Name =
Person Responsible =
Cost Center Category =

Hierarchy area =
Business Area =
Click on Save
Cost Center = 2000

Press Enter
Name =
Hierarchy area =
Business Area =
Click on Save
Cost Center = 3000

Press Enter
Name =
Hierarchy area =
Business Area =
Click on Save
4. Note Down General Ledger for Testing

GL No =

Case 1 – No Material master

1. Create Purchase Requisition ME51N
5. Check Stock Report MMBE
Case 2 – With Material Master (NLAG) --- No Qty & No Value

1. Check Material Type OMS2
2. Create Material Master MM01
Case 3 – With Material Master (UNBW) --- Qty & No Value

1. Check Material Type OMS2
9. Issue Stock to Cost Center MIGO

Case 4 – Account Assignment Category – U- Unknown

Multiple Account Assignments
Business Function “ LOG_MM_MAA_1 “ SFW5
1. Multiple Account Assignment
2. GR Valuated
Purchase Order Good Receipt Invoice Verification
NO Entry—GR NON Valuated. Entry Posted Here

Before Activating Business
NO Entry Even if you want you can’t post entry Expenses A/c Dr
Function
here without activating Function To Vendor A/c
After Activating Business Expenses A/c Dr GR/IR A/c Dr

No Entry
Function To GR/IR A/c Cr To Vendor A/c
Case 5 – Distribute in Sequence ----- Partial Delivery & Invoice

4. Partial Goods Receipt MIGO

Case 6 – Distribute in Proportionally -- Partial Delivery & Invoice

4. Partial Goods Receipt MIGO

Blanket Purchase Order

Item Category -B
Approval
Consumables A/c Dr
To Vendor
Features of Blanket Order:

1. Order type FO (framework order)
2. Valid for long term
3. No material Master is required
4. Account assignment category U (unknown) allowed
5. No goods receipt or service entry
I appreciate your feedback on my Course by writing a review
Process Steps:
2. Release Purchase Order ME29N
3. Good Receipt MIGO ----------------This step is not required

External Procurement of Services
Item Category -D
Approval
Accept Service Entry

Service Entry Sheet Invoice Verification Payment
Sheet
Expenses A/c Dr GR/IR A/c Dr

To GR/IR A/c Cr To Vendor
Process Steps:
1. Create Service Master Record AC01
2. Create Condition Record ML33
6. Service Entry Sheet ML81N
7. Check PO History ME23N
8. Approve Service Entry Sheet ML81N
9. Check PO History ME23N

Consignment Procurement
Item Category -K
Approval
Settlement of
Goods Receipt Goods Withdraw Payment
Consignment
Consignment Features
1. You can’t enter Price in Purchase Order
2. Goods receipt will be non-Valuated
3. Goods Receipt stock will be posted to Vendor Consignment Stock
4. You can’t use invoice verification “MIRO “for Consignment
5. We have to withdraw stock from Vendor Consignment Stock for consumption and pay accordingly.
Process Steps:
I appreciate your
1.
2.
Create Consignment Material Master
Create Info Record for Consignment
MM01
ME11
feedback on my
3. Create Purchase Requisition ME51N Course by writing
4.
5.
Create Purchase Order
Release Purchase Order
ME21N
ME29N
a review
6. Check Stock Overview Report MMBE
9. Transfer goods to own stock MIGO --------- 411 K
11. Transfer goods to own stock MIGO ---------- 201 K
12. Consignment Settlement MRKO

Automation for Settlement of Consignment:
1. Program RMVKON00
2. Create Variant
3. Schedule background job for settlement

Subcontracting Procurement
Item Category -L
Purchase Goods Issue

BOM Order (Components)
Receiving
Goods SubContractor
Finished Goods
Invoice Verfication Payment
Mandatory Configuration
Maintain MRP Parameter for Plant - OMI8

SPRO > IMG > Material Management >Consumption based planning > Plant parameters > Carry out
overall maintenance of plant parameters
Click on Copy Button
FromPlnt =
To Plant = Press Enter and Save

Process Steps:
2. Create Bom for Finished Product CS01
3. Create Info Record for Subcontracting Charges ME11
4. Procure Component Complete P2P Cycle
7. Component issue to Vendor MIGO
9. Check Stock Issued To Vendor ME2O
10. Receive Finished Goods MIGO

Third Party Procurement

1. Third-Party Procurement for a Subcontract Vendor
2. Third-Party Procurement for a Customer
Subcontract
Purchase Subcontract
Purchase
Requisition Vendor
Order
Components delivered to
Purchase
Purchase Order for
Requisition Vendor
Components
Sending GR Details
Goods
and Invoice
Receipt
for accounting
Invoice
Verification
I appreciate your
Payment feedback on my Course
by writing a review
Process Steps:
2. Create Bom for Finished Product CS01
3. Create Info Record for Subcontracting Charges ME11
4. Create SC Purchase Order ME21N
6. Procure Component dlv to Vendor P2P – PO-GR
9. Receive Finished Goods MIGO

Third Party SD Scenario
Goods Delivered to
Sales Order Customer
Billing Customer Customer Payment
Customer A/c Dr Bank A/c Dr

To Sales A/c Cr To Customer A/c Cr
Cost of Goods Sold Dr Vendor A/c Dr

To Vendor A/c Cr To Bank A/c Cr
Goods Receipt Invoice Verification Payment To Vendor
Process Steps:
1. Create Material Master MM01 TAS Third Party Item
2. Create SD info Record VK11
CS Leg
3. Create Sales Order VA01
4. Check Purchase Requisition ME51N
I appreciate
7. Invoice Verification MIRO your
8. Check Stock Report MMBE feedback on
9. Check Vendor Report FBL1N my Course
10. Make Payment to Vendor F-53
by writing a
11. Customer Billing VF01
12. Check Customer Line Item Report FBL5N
review
13. Customer Payment F-28

Vendor Return Process:

Approval Goods Receipt Good Return
Return without Return Purchase Order

1. Create New Material Master MM01
2. Create Purchase Order ME21N I appreciate your
4. Post Goods Receipt MIGO
feedback on my
5. Check Stock Overview MMBE Course by writing
6. Post Return Goods MIGO ----------122
7. Check Stock Overview MMBE a review
Non-Valuated GR Stock Return
1. Create New Material Master MM01

4. Post Goods Receipt MIGO----------103
5. Check Stock Overview MMBE
6. Post Return Goods MIGO ---------124
8. Reason Code for Movement Type OMBS
Return with Return Purchase Order

3. Post Goods Receipt MIGO
5. Create Return Purchase Order ME21N --- 161
7. Post Goods Issue MIGO
8. Post Credit Memo MIRO

Sap S4 Hana MM

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Sap S4 Hana MM

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SAP S4 HANA MM

SAP Material Management (MM) Simplified

What You’ll Learn:

2. Complete End-User Testing

Faculty: Mohammed Rashid Email: sap.rashid@yahoo.com

Few Industry Specific:

Faculty: Mohammed Rashid Email: sap.rashid@yahoo.com

Material Management (MM Module)

Few Real-time Business Process flows:

 To Manage Inventory on Quantity & Value Base

o Plant to Plant with company code

o Cross Company Code Transfer

 Invoice Verification Scenarios

Faculty: Mohammed Rashid Email: sap.rashid@yahoo.com

Typical SAP Landscape:

Server 1 Server 2 Server 3

Enable Disable Disable

Faculty: Mohammed Rashid Email: sap.rashid@yahoo.com

SAP Credentials: ask your client / employer for below credentials.

Application Server : 192.168.75.100 192.168.75.141 192.168.75.143

Faculty: Mohammed Rashid Email: sap.rashid@yahoo.com

How to Create New Session:

Faculty: Mohammed Rashid Email: sap.rashid@yahoo.com

How To Move From One Session To Another:

How to Close a Session:

What is Transaction Code (TC) ?

Going Back To SAP Easy Access Screen:

Activating Transaction Codes in SAP Menu (User specific settings)

Faculty: Mohammed Rashid Email: sap.rashid@yahoo.com

How to Set Start Transaction Window:

To Set start transaction

How to Close SAP: For closing SAP path

UNLOCKING SCREENS: - SM12

This T.Code should not be used in real-time means Production System

Find Path for T. Code “FS00”

Faculty: Mohammed Rashid Email: sap.rashid@yahoo.com

Corporate Group = Client

Trading Company = Company Code

Manufacturing & Selling Facility = Plant

Raw-Material, Finished Goods, Scrap Material = Storage Location

Purchasing Organization: in SAP, we call Purchasing Department as Purchasing Organization. It is

Purchasing Organization may be

One Plant = One Purchasing Organization

Two Plant = One Purchasing organization

Faculty: Mohammed Rashid Email: sap.rashid@yahoo.com

Two or more company code = One Purchasing Organization

4. Reference Purchasing Organization:

5. Standard Purchasing Organization:

Faculty: Mohammed Rashid Email: sap.rashid@yahoo.com

Basic Configuration Steps

1. Edit, Copy, Delete, Check Company Code – Tc- EC01

2. Define valuation level- Tc – OX14

3. Define, copy, delete, check plant – Tc- OX10

4. Define, copy, delete, check division -Tc- OVXB

5. Assign plant to company code- Tc – OX18

6. Group Together Valuation Areas

7. Maintain Storage Location – Tc- OX09

8. Create Purchasing Organization – Tc- OX08

9. Assign purchasing organization to company code- Tc – OX01

10. Assign purchasing organization to plant- Tc – OX17

11. Assign standard purchasing organization to plant – Tc - OMKI

12. Maintain Company Codes for Materials Management – Tc OMSY

Faculty: Mohammed Rashid Email: sap.rashid@yahoo.com