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123717102-Sap-MM-overview.ppt
- 1. Contents Invoice Verification/Valuation Automatic Account Determination Overview and Org. Structure Material Master Purchasing Master Data Procurement Inventory Management/ Valuation Topics
- 2. Overview and Organizational Structure
- 3. NCPDM (US National Committee on Physical Distribution Management) : "..physical distribution management .. is .. the integration of one or more activities for the purpose of planning, implementing and controlling the efficient flow of raw materials, in-process inventory and finished goods from point of origin to point of consumption..." Definition: Logistics
- 4. Resource Management in Logistics Capacity resources Capital resources long-term short-term Material resources Logistics chain Vendor Production Sales Purchase orders Procurement materials services Distributions products services Sales orders Ware- house Ware- house Customer Capital Investment Expense/costs Cash
- 5. Inventory management Invoice verification Invoice receipt Overview of MM ? A B Warehouse management Goods receipt Sales and distribution Internal and external accounting Goods issue Transfer posting Material requirements planning External procurement Purchasing Internal procurement Production Master data Material Batch Vendor G/L accounts Customer Storage bins . . .
- 6. Procurement Process Order Order processing Order follow-up Goods receipt and inventory management MM Materials management 6 5 4 Source determination 2 Vendor selection 3 Invoice Order ? Invoice verification 7 Requirement determination 1 MRP
- 7. Organizational structures in R/3 Organizational units Company Controlling areas Sales organizations Purchasing organizations Company codes Plants Valuation areas Storage locations/batches/special stocks
- 8. Invent. mgmt w/o warehouse mgmt Storage locations Company Code Plants 0001 0002 0003 0001 0001 0002
- 9. Invent. mgmt with Warehouse mgmt Plants Storage locations Warehouse numbers Storage types Storage bins 0001 0002 0088 0002 0088 0001 001 005 001 05-04-04 05-04-03 Company Code
- 10. Company codes Valuation Client 0001 0002 Plants 0001 0002 0003
- 11. Company codes Example for Valuation RC Plants Mumbai plant Delhi depot VAL. AT CO.CODE VAL. AT PLANT 125/ BAG 125/ BAG 125/ BAG 150/ BAG
- 12. Accounting Client Company codes 0001 0002 0003 Business area 0001 Business area 0002 Business area 0001
- 13. Purchasing Organization Plants Company (Group) Company codes Purchasing organizations 0001 0001 0001 0001 0002 0004 0002 0003 0003 0002
- 14. Organizational Entities in Purchasing Plant 1 Purchasing organization 1 Purchasing organization 2 Purchasing group 1 Purchasing group 2 Purchasing organization Plant 2 Plant 2 Plant 10
- 15. Material Master
- 16. Material master record General data Material number Description Units of measure Technical data Plant-specific data MRP/type Planned delivery time Purchasing group Batch indicator Valuation Valuation price Valuation procedure Valuated quantity Sales-specific data Delivering plant Sales texts Unit of measure Palletting instruction Storage location- specific data Storage time Stockfields Forecast data Consumption data Warehouse Manage- ment system data
- 17. Units of measure Base unit: Piece Box (unit of issue) Crate (order unit) Pallet (sales unit) 4 16 72
- 18. Material data maintenance: accounting Valuation class MART Allowed values ROH 3000 3010 HALB 7920 HIBE 3000
- 19. Maintenance of material data Price control Standard- price control: Valuation of standard price from the material master record Moving average price control: Final delivered price (such as purchase order price) influences the valuation price S V
- 21. Purchasing Master Data The Vendor
- 22. The vendor Goods receipt Bank order account ? = Invoice verification purch ase order Invoice Material Purchasing Payment DEUTSCHE MARK DEUTSCHE MARK DEUTSCHE MARK Vendor
- 23. Organizational levels of vendor master record General data Purchasing organization data Company code data Company code 001
- 24. Vendor master record General data Address Communication Purchasing data Order currency Incoterms Minimum order value Accounting data Bank data Payment transactions Account management Valid for the whole group Valid for one purchasing organization Valid for the whole group or for one company code
- 25. One-time account Account group Type of number assignment Interval for number assignment Field selection Account group
- 26. Enter invoice Control account Invoice "Parallel" Invoice Payables Vendor G/L accounting Vendor A Accounts payable Vendor You
- 27. Purchasing Master Data Info Record
- 28. Purchasing info records Vendor A Material Piece % Conditions USD Info record Vendor B Stock material M1 Consumable material M2 Service S1 Info record Info record Info record Info record
- 29. Data in the purchasing info record General data Vendor data Origin data Order unit Texts Control data Delivery time Minimum quantity Tolerances Prices and conditions Gross price Discounts Freight Price history Purchasing statistics Changes
- 30. Pricing Records for condition type No valid record exists Valid record exists Pricing procedure RM000 Item 10 120 pcs PB00 Price $99 $100 for 1 pcs $99 for 100 pcs $98 for 200 pcs 1.Price PB00 2.Discount RA00 Access sequence: PB01 1. Outline agreement 2. Vendor/material/ organizational level 3. Vendor/material group/ organizational level Condition type: PB00 Access sequence: PB01 1 2 3 4 Purchase order Vendor 123 Purchasing organization 2000 5 Scale
- 31. Conditions Gross price Discount % Net price: Fixed freight charge + Effective price: PB00 RA01 FRA1 Condition type Calculation type Scale basis Price/quantity scale Pricing procedure
- 32. Purchasing Master Data Source List
- 33. Source list 1.1.95 - 30.6.95 Vendor 1 allowed Vendor 2 allowed Vendor 3 allowed Source list Material M1 Plant 0001 1.7.95 - 31.12.95 Vendor 1 fixed
- 34. Procurement
- 36. External procurement environment Source list Quota arrangement Piece % Conditions USD Info record RFQs Quotations Invoice receipt Purchase requisition Source determination Vendor selection Requirements determination Outline agreement Goods receipt Purchase order Purchase order history
- 37. Purchasing documents RFQ Purchase order Purch.order Quotation Quotation A Quotation B ? Purchase requisition Purchase requisition Release order Contract Scheduling agreement 31. 1. RFQ ?
- 38. Structure of a purchasing document Item 1 General data Conditions Texts Schedule line Additional data for item 1 Purchase order history . . . Item 2 . . . Additional data for item 2 . . . Purchasing document ocument General data statistics Messages Conditions Document header
- 41. Procurement for stock Material Purchasing document(s) Item: no account assignment category Vendor Goods receipt Goods issue Warehouse Production
- 42. Production Procurement for consumption Material Purchasing document(s) Item: with account assignment category Vendor Goods receipt
- 44. Consumption-driven MRP Requirements planning Net requirements calc. Lot sizing Scheduling Inventory management Material master Material A Purchasing Forecasting
- 45. Materials planning and control procedures Requirements planning Deterministic MRP Consumption-based Reorder point procedure Stochastic VM, VB VV Time Consumption Stock level Time
- 46. Reorder Point Procedure Replenishment lead time Stock Lot size Reorder level Safety stock Reorder point Delivery date Time
- 47. Net Requirements Calculation in the Reorder Point Procedure Reorder level Purchase order Fixed planned orders Fixed purchase requisition Purchase order proposal to the amount of the lot size Warehouse stock Shortage Comparison
- 48. Safety Stock and Reorder Level Replenishment lead time Reorder level Safety stock Time Stock Replenishment lead time Service level MAD Daily x Replenishment lead time
- 49. Net Requirements Calculation in Forecast Based Plng. Fixed inward movements e.g. purchase orders Purchase orders proposals Planned orders Purchase requisitions Lot size Warehouse stock Shortage Comparison Forecast requirements Safety stock
- 50. Lotsizing procedures Exact lot size Fixed lot size Replenish to maximum stock level Static procedure Periodic procedure Optimum procedure Lot sizing procedures Part period balancing Groff procedure ...
- 51. Static Lot-sizing Procedures Quantity Time Exact lot size Replenish to maximum stock level Fixed lot size Inward movements Outward movements Planned warehouse stock =
- 52. Periodic Lot-sizing Procedures Quantity Time Period length Period length Inward movements Outward movements
- 53. Dynamic Planning Calculation Req. x Price x Storage costs % x Time in storage Storage costs = 100 x 365 Price : $ 20 Lot fixed costs: $ 100 Storage costs percentage : 10 % Requirement date Req. quantity Lot size Fixed costs Storage costs 06.07.1994 1000 1000 100 0 13.07.1994 1000 2000 38.36 20.07.1994 1000 3000 76.71 27.07.1994 1000 4000 115.07 Optimum
- 54. Part Period Balancing Req. x Price x Storage costs % x Time in storage Storage costs = 100 x 365 Price : $ 20 Lot fixed costs: $ 100 Storage costs percentage : 10 % Requirement date Req. quantity Lot size Fixed costs Storage costs Total storage costs 06.07.1994 1000 1000 100 0 0 13.07.1994 1000 2000 38.36 38.36 20.07.1994 1000 3000 76.71 115.07 27.07.1994 1000 4000 115.07 198.78 Optimum
- 55. Least Unit Cost Procedure Req. x Price x Storage costs x Time in storage Storage costs = 100 x 365 Price : $ 20 Lot fixed costs : $ 100 Storage costs percentage : 10 % Requirement date Req. quantity Lot size Fixed costs Storage costs Total costs Unit costs 06.07.1994 1000 1000 100 0 100 0.10 13.07.1994 1000 2000 38.36 138.36 0.07 20.07.1994 1000 3000 76.71 215.07 0.11 27.07.1994 1000 4000 115.07 330.14 0.08 Optimum
- 56. Scheduling in the case of external procurement 1 2 1 2 Forward scheduling Backward scheduling Replenishment lead time Replenishment lead time GR processing time GR processing time Today + 1 Purch. order delivery date MRP delivery date t t Purch.order delivery date MRP delivery date Start / release date
- 57. The requirements planning process Purchasing MRP Order Planned order 31. 1. Opening period of materials planning/ control Material requirements planning Planning mark-out Purchase requisition Process relevant to MRP
- 58. Purpose of the forecast Reorder level Safety stock Forecast Forecast requirements VM VV Forecast MRP type Material A
- 61. Purchase requisition processing RFQ ? Release order o.k. MRP Direct entry Purchase requisition Determine source of supply Vendor Release Allocate and process Purchase order
- 62. Procurement Processing Vendor Inquiry / Quotations
- 63. Request for quotation/ quotation RFQ 1 Quotation 1 Quotation 2 Purchase order Rejection RFQ 2 ? Price comparison list Vendor 1 Vendor 2 Requirements known. Procure from which source?
- 64. Entering an RFQ Inquiry 2 ? Vendor 1 Vendor 2 Inquiry 1 ? Item list 1 2
- 65. Issuing output Output Reprint Purchasing document Reminder Rejection Order acknowledge- ment check Printer EDI Fax
- 66. Processing Quotations: Example Enter price and pricing conditions 1 Vendor B Quotation for RFQ 2 Item 10 Gross price: 400/t Surcharge: 50% Vendor C, B - Rejection- Thank you for your offer. Unfortunately, we cannot place an order at this time ..... Vendor A Quotation for RFQ 1 Item 10 Gross price: 400/t Discount: $50 Vendor C Quotation for RFQ 3 Item 10 Gross price: 400/t Fixed costs: $40 Vendor A - Order - Mat. Qty Price Steel 2t 350/t Create info record or reject quotation 3 Steel 2 t Price 350/t 480/t 520/t 450/t Quotation 1 Quotation 2 Quotation 3 Mean value quotation Compare quotations using price comparison list 2
- 68. Processing Purchase Orders Purchase requisition RFQ ? ? Reference document Contract Pcs % Conditions $ Info record Order history Purchase order Vendor One-time vendor
- 70. Scheduling Agreements Einstellungen Einstellungen Purchase requisition RFQ Reference scheduling agreement Purchase requisition Vendor 1 2 Schedule lines Scheduling agreement
- 71. PROCUREMENT OF EXTERNAL SERVICES
- 75. Inventory management Warehouse 1 Warehouse 2 Goods receipt Goods issue Old system Vendor In-house production Consumption Scrapping Transfer posting
- 76. Documents for goods movements Goods movement Material A Material document Accounting document Warehouse
- 77. Plant Valuation area Material valuation levels Material Valuation Levels Company code 0001
- 78. Split Valuation: Structure Valuation area 0001 Material 1 Valuation category H Quantity 100 Mvg. av. price 5.20 Valuation Plant 0001 Material 1 Plant Storage location Batch Stor. loc. 0001 Quantity 30 Stor. loc. 0002 Quantity 70 Italy Quantity 10 France Quantity 20 Italy Quantity 30 France Quantity 40 Quantity 40 V - price 4.00 Quantity 60 S - price 6.00 Valuation type Italy Valuation type France
- 79. Updating the stock situation Stock situation On a quantity basis Material master Special stocks Stock fields per plant, storage location and special stock On a value basis G/L accounts Debits and credits per company code, period and, possibly, business area
- 80. Entering material documents Movement type Material document item Account determination Consumption update Quantity update Indicator for printout Field selection
- 81. Standard analyses Analyses in inventory management Analyses Stocks overviews Stock per material Material movement list Inventory control Plant stock availability Reqs./stock list Warehouse stock list ABC-Analyses Stock value Range of coverage Slow-moving items/ inventory turnover
- 82. Inventory Management Processing Goods Receipts with Purchase Order Reference
- 83. Purchase Order Views in Inventory Management Purchase order General Purchase order history Changes Statistics $ Conditions 01/01/95 10/01/95 30/03/95 Schedule lines Account assignment Texts Header Vendor Conditions Texts Output Items
- 84. Determining the purchase order during GR Manuell Goods receipt for purchase order Purchase order List of open purchase orders by - vendor - material - delivery plant Matchcode Manual
- 85. Stock types for goods receipt Account assignment object Unrestricted-use stock Stock in quality inspection Blocked stock Goods receipt blocked stock Warehouse Cost center Order ...... Vendor
- 86. Posting procedure for goods receipt (example) Stock account Stock value GR/IR clearing Price differences ( ) ( ) Update for goods receipt
- 87. Inventory Management Processing Goods Receipt w/o Reference
- 88. GR w/o Reference to a Purch. Order or Production Order Goods receipt Preplanning without purchase order without production order Initial entry of stock balance Without purchase order Without production order Goods receipt of by-products Delivery free of charge Returns from customer
- 89. Inventory Management Processing Stock Transfer / Transfer Postings
- 90. Transfer posting Transfer posting Stock transfer Miscellaneous transfer postings From plant to plant From storage location to storage location From material to material From QM to unrestricted use From consignm. stores to warehouse
- 91. Valuation in the Case of Stock Transfer Receiving plant Issuing plant 100 pcs Stock plant 01 ( a ) 200.00 ( b ) 200.00 Stock plant 02 300.00 200.00 Expense / revenue from stock transfer 100.00 Standard- price 2.00 (a) (a) (b) (b) Moving average price 2.00 Standard- price 3.00 Any moving average price
- 92. Inventory Management Processing Goods Issues
- 93. Goods issues From warehouse From consignment stores Goods issue Sampling Scrap Consumption Cost center Asset Sales Order Issue
- 94. Effects of goods issue Material document Accounting document G/L account. Stock account Consumption account ... Reservation Order Stock quantity Consumption statistics ... Point of consumption: Cost center Order ... Warehouse mgmt: Transfer order Quality management: Inspection lot Goods issue
- 95. Posting method for goods issue Stock account Stock value Consumption account Update on goods issue
- 96. Special Stocks and Special Procurement Types • Consignment • Subcontracting • Stock Transfer with Stock Transport Order • Third party processing • Returnable Transport Packaging • Pipeline handling • Sales order stock • Project Stock
- 97. Company’s Own Special Stock • Stock of material provided to Vendor • Consignment stock at Customer • Returnable packaging stock at Customer
- 98. Company’s Own Special Stock Managed at plant level Stock types • Unrestricted use stock • Quality inspection stock
- 99. Externally-Owned Special Stocks • Vendor Consignment • Returnable Transport Packaging • Sales order stock • Project Stock
- 100. Externally-Owned Special Stocks Managed at Storage location level Stock Types • Unrestricted Use stock • Quality inspection Stock • Blocked stock
- 102. Physical Inventory Procedures • Periodic inventory • Continuous inventory • Cycle counting • Inventory sampling
- 103. Physical Inventory • Can be carried out for Company’s own stock and Special Stock • Inventory for Company’s own stock and Special stock must be taken separately in different physical documents • Physical inventory can be taken for Unrestricted-use stock in the warehouse Quality inspection stock Blocked stock
- 104. Physical inventory procedure Create physical inventory document 1 Set blocking indicator 2 Physical inventory document 4 Post differences Batch-Input Batch-Input Arrange recount Change count 6 List of differences 5 Print physical inventory document 3 5a 5b
- 105. Invoice Verification / Valuation
- 106. Types of invoice verification Purchase order Purchase order ? Invoice verification Vendor invoice Goods receipt or or
- 107. ---- Invoice verification environment Purchase order Goods receipt Material master Vendor master Conditions Invoice verification Invoice document G/L accounts Assets Cost centers Purchase order Material master
- 108. Posting an invoice Purch. order history Goods receipts Down payments Invoices Material master Moving average price Value Invoice relating to purchase order Post A XX B XX GR/R account Vendor account Doc. No. 51000123 Vendor 100- GR/R 100+
- 109. Variances Goods receipt Quantity Invoice 50 pieces WE 40 Price Goods receipt Invoice 10 pcs = 200g Date Invoice Purchase order $5 Invoice $6 at = 2 kg Purchase order 10 pieces at $20/kg Order price quantity 04/12/95 Invoice 10 pieces = 2.5 kg 26/11/95 10 pieces = 250 g Purchase order Planned delivery date
- 110. Tax Company Material value +Tax on sales/ Purchases Material value + input tax Tax office Tax payable Vendor A A A Customer
- 111. Invoice receipt postings Stock account Stock value ( ) ( ) GR/R clearing Input VAT Vendor (control acct.) Price differences ( ) ( )
- 112. Postings at Standard Price Purchase order price 2.40 / pc Invoice price 2.20 / pc Stock account ( 2 ) 200.00 Exp. / revenue Price difference ( 2 ) 40.00 20.00 ( 3 ) Vendor / general ledger 220.00 ( 3) GR / IR clearing account ( 3 ) 240.00 240.00(2) Event Stock Total value Standard Moving av. price price ( 1 ) Initial situation 100 200.00 2.00 2.00 ( 2 ) GR for purch. order: 100 @ 2.40 200 400.00 2.00 2.20 ( 3 ) IR for purch. order: 100 @ 2.20 200 400.00 2.00 2.10
- 113. Postings at Moving Average Price Stock account ( 2 ) 240.00 20.00 ( 3 ) ( 4 ) 240.00 550.00 ( 5 ) 10.00 ( 6 ) Event Stock Total value Moving av. price Exp.. / revenue Price difference 10.00 ( 6 ) ( 1 ) Initial situation 100 200.00 2.00 ( 2 ) GR for purch. order: 100 @ 2.40 200 440.00 2.20 ( 3 ) IR for purch. order: 100 @ 2.20 200 420.00 2.10 ( 4 ) GR for purch. order: 100 @ 2.40 300 660.00 2.20 ( 5 ) Goods issue: 250 @ 2.20 50 110.00 2.20 ( 6 ) IR for purch. order: 100 @ 2.20 50 100.00 2.00 Raw material consumption ( 5 ) 550.00 GR / IR clearing account ( 3 ) 240.00 240.00 ( 2 ) 240.00 ( 4 ) ( 6) 240.00 Vendor / general ledger 220.00 ( 3 ) 220.00 ( 6 )
- 114. INVOICING PLANS Facility to schedule Invoicing dates for planned procurement independent of goods and service receipts Periodic Invoicing Plan Partial Invoicing Plan
- 115. Account Determination Procedures for Automatic Postings in MM
- 116. Types of Account Determinations Movement Type based Transactions SD MM PP QA PM HR FI CO AM PS WF IS R/3- Client/Server ABAP/4 SD MM Non-Movement Type based Transactions Cond. Technique
- 117. Grouping Organizational Levels for Account Determination Valuation grouping code Plant Company code Case: valuation area = plant Chart of accounts 0001 0003 0002 0001 0004 0005 0003 0002 0003 0004 0002 IKR 0001 GKR
- 118. Grouping of Material Type - Valuation Class Valuation class Account category reference Material type FERT HALB HAWA . . . ROH1 ROH2 ROH3 . . . 0001 0002 0003 0004 7900 3000 3010 3020 3030 3040 3100 3200
- 119. Grouping of Materials for Account Determination Option 1: Acct. 1 Acct. 2 Acct. 3 Option 2 Acct. 1 Acct. 3 Option 3 ROH Acct. 1 Acct. 2 Mat 1 Mat 2 ROH Mat 2 HIBE Mat 3 Mat 4 Mat 1 ROH Mat 1 Mat 2 HIBE Mat 3 Mat 4 FERT Mat 5 Mat 6 FERT Mat 5 Mat 6
- 120. Procedure Part 1: Value String - Processing Keys Transaction Inventory Management Invoice verification Value String (Generalized posting record) BSX Processing keys G/L account number Material Invoice verification ? = WRX 191100 300100 425000 KBS
- 121. Procedure Part 2: Processing Key - Rules Transaction Processing keys for debit/credit posting Parameters on which account allocation depends 1 Processing Key (Transaction) Chart of accounts Rules 2
- 122. Procedure Part 3: Rules - Account Allocation Rules specify account determination key (Valuation grouping code) (Account grouping code) (Valuation class) Account number Processing Key (Selection of transaction) Selection of chart of accounts
- 123. Account Determination Procedure: Overview Legend Information derived from Transaction type Information derived from Material Master Information derived from the organiz. Structure Main Customizing area Movement type based Transaction "Type of Material" Step 1 or 2 Material Type Plant Value Posting String Qty. Posting String Step 3 Processing Key (GBB) Company Code Chart of Account Valuation Class Val. Grouping Code Rules Step 4 G/L Account Account Categ. Reference Material Master Type of Transaction Non-move- ment type based Transaction Account modification Processing Key (AUF)
- 124. Automatic Posting: Maintenance of the Settings Selection of the valuation grouping code 1 Selection of the posting transaction 2 Allocation of the G/L account number(s) per valuation class (and account grouping code) 3