FI - MM.pptx

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FI-MM Intergration

• Company Code
• Plant
• Storage Location

Company Code The central organizational unit of external
accounting within the SAP System
Plant Plant is an independent, physical and highest
organizational unit
Eg:
Operational unit
Manufacturing unit
A sales branch of an organization
MM - plant can be defined as a location that
holds valued stock
Storage Location Storage location is a place where stock is kept
physically
Eg:
Stores
Warehouse
Godown

Company Code
Plant 1
Storage Location
1
Storage Location
2
Plant 2
Storage Location
1
Storage Location
2
Plant 3
Storage Location
1
Storage Location
2

Material

Material
• Materials in SAP have a material master
• Material master has various views (T.Code:MM03 (Dispaly))
 Basic view
 Purchasing view
 Production view
 Sales and distribution view
 Accounting view
 Controlling views.

Accounting view
• Valuation Class field

Accounting view
Valuation Class field T.Code: MM03,MM01,OMSK, OBYC
• The vital link which ensures that Accounting documents are
posted automatically.
• Every material will have a valuation class field.

Valuation Class can be T.Code: OMSK
Note: The combination of this Valuation Class+ the Movement
Typehelps in determining the Gl accounts.

Movement Type
• All Material movements in MM happen with respect to a Movement Type.
• Movement types are similar to Posting keys in FI Modules
• T.Code
 OMBS - Control Reason for Movement type
 OMBQ - Copy, Change Movement Types
• Table
 T.Name - T156T

Few Movement Types
101 Material Recipt againt the purchase Order or production Order
102/122 Reversal of 101
201 Issued to cost center
202 Reversal of 201
241 Issued to Asset
242 Reversal of 241
261 Issued to order
262 reversal of 261
301 Plant to Plant transfer
302 Reversal of 301
309 Material to Material Transfer
310 Reversal of 309

521 Production Receipt without Production Order
522 Reversal of 521
551 Scrapping of Material
552 Reversal of 551
561 Opening Stock Taking
562 reversal of 561
601 Delivery (Sales)
602 reversal of 601

Transaction Keys T.Code:OBY
BSX--> Inventory Posting
WRX--> Goods Receipt/Invoice Receipt (GR/IR) Clearing
PRD--> Price Difference/Production order difference
GBB-->Offsetting entry for inventory posting
VBR-->Consumption
VNG-->Scrapping
BSA-->Opening Stock
ZOF-->Production Receipt without production order
AUF-->Production Receipt with production order (Production order (PP))
VAY--> Delivery where sales account created as Revenue element (CO
Implemented)
VAX--> Delivery where sales account is not created as revenue element ( CO
not implemented)
AUA--> Production Order Difference

P2P Process ( Procure to Pay)

P2P Process ( Procure to Pay - Departments)
Factory
Purchase Department
Goods Requisition
Godown
Store Department
Purchase Requisition
HO
Purchase Department
Inviting Quatation
Vendor Quotations (Yes)
PO Create
Goods Send
Goods Receipts
GR
Booking Liability
Invoice
Payment

P2P Process ( Procure to Pay - Journal Entry)
1. Production department rises the Material
requesition as requirement to stores department
2. Stores Department rises the purchases
requesation to Purchase department
3. Purchase department invites the quotation from
various vendors, once vendor finalized,It issues the
Purchase order (PO)
4. Vendor will send the goods as per PO
5. Booking vendor Liability or Invoice verification
6. Payment to Vendor

P2P Process ( Procure to Pay - Journal Entry)
1. Material requesition
No Accounting Entry
2. Purchases requesition No Accounting Entry
3. Purchase order (PO) No Accounting Entry ME21N
4. Goods Received Inventory a/c DR
GR/IR a/c CR
MIGO
5. Invoice verification GR/IR Clearing a/c DR
GST Received a/c DR
Vendor a/c CR
TDS Payable a/c CR
MIRO
6. Payment to Vendor Vendor a/c DR
Outgoing Bank a/c CR
F-53/F110

MM Configuration
1. Define, copy, delete, check plant
T.Code: OX10

• Save - Enter

MM Configuration
2. Define valuation level
T.Code: OX14
• Specify the valuation of material is at plant level or Compnay code level

• No need to do any thing here

MM Configuration
3. Define, copy, delete, check division
T.Code: OVXB
• Product or range of products or group of products or product line in sap

• Click on new Entries
• Save - Enter

MM Configuration
4. Maintain storage location
T.Code: OX09

• Enter
• Save - Enter

MM Configuration
5. Maintain Purchase Organization
• Organisational unit
• Created under a company code or plant.
• Responsible for procurement activities
• Can have centralised purchasing Org or Location wise or plant wise PO

MM Configuration
5. Maintain Purchase Organization
T.Code: OX08

• New Entries
• Save - Enter

MM Configuration
6. Assign Plant to company code
T.Code: OX18

• New Entries
• Save - enter

MM Configuration
7. Assign purchasing organization to company code
T.Code: OX01
• New Entries

• Save - enter

MM Configuration
8. Assign purchasing organization to plant
T.Code: OX17

• New Entries
• Assign P Organization to Plant
• Save - Enter

MM Configuration
9. Maintain Company Codes for Materials Management
T.Code: OMSY

• Give Year, Period, Allow posting for current year
• Save - Enter
Note:
• In MM we can open only 2 posting Periods
ABp - Idicates that we can post entries in current period and
previous period only.

MM Configuration
10. Define Attributes of Material Types
Material Types are similar to Account groups in FI
ROH=Raw Material Types---------> Valued at Moving average price
FERT=Finished Products---------> Valued at Standard Price
ERSA=Stores and Spares---------> Valued at Moving average price
VERP=Packing Materail---------> Valued at Moving average price
HALB=Semi Finished Goods

MM Configuration
10. Define Attributes of Material Types
T.Code: OMS2

• Select Position
• Enter

MM Configuration
11. Define Material Group
• Material with common characteristics and attributes are taken together
• They are assigned to material group
(Materail groups are created and while material master is created these
groups are used)
Eg: Raw Material, Stores Chemicales Etc….

MM Configuration
11. Define Material Group
T.Code: OMSF

MM Configuration
12. Create Purchasing Groups
T.Code: OME4

MM Configuration
13. Set Tolerance Limits for Price Variance for Purchase order

PE - Price Escalation
How much the price of a product or service can increase from the
initial purchase order price before it triggers a review or approval
process.
SE - Supplier Evaluation
Relate to the acceptable level of performance and adherence to agree-
upon terms by the supplier
• On-time delivery
• Quality,
• adherance to pricing agreements

• Select Tolerance Key PE & SE for company code 1000
• Select Copy Button

• Change Company code to BDLK
• Enter
• Save

• Change Company code to BDLK
• Enter
• Save - Enter

Select |Tolerance Key B1,B2 & VP for company code 1000
SelectCpoyasbutton

MM Configuration
14. Set Tolerance Limits for goods receipt

MM Configuration
15. Set Tolerance Limits Invoice Verification
T.Code: 0MR6

• Select BD & ST Transaction Key
• Copy

• Give your Company Code
• Enter

• Save

MM Configuration
16. Define Plant Parameters

• Select Plant 1000
• Copy

MM Configuration
17. Define Number Assignment for Material & Physical Inventory
Documents
T.Code: OMBT

• Save
Note: NR Status will be updated automatically by system

• Enter

Note: Observe that NR 05 has came automatically
Note: In NR will be different case to case
Select Back button

• Keep the cursor on 05 and select enter or double click on 05

Do the same procedurre for Document type WA & WL also WE
• Save

MM Configuration
18. Maintain Default Values for Tax codes

• Create New Entries
• Save

MM Configuration
19. Define Automatic Status Change

• Save
• Create New entries

MM Configuration
20. Group Together Valuation Area
T.Code: OMWD
When no of plants in a company code are using the same chart of accounts
then we can assign plant wise separete accounts with the help of valuation
grouping code/ valuation modifier

• Create New entries
• Save
Note: Varible can be any thing in Value group code

MM Configuration
21. Define Valuation Classes
• Categorizes the GL accounts on the basis of Material groups
Eg:
Local Material and Import material we can use / assign different GL
accounts
• It Defines which Raw Material account to posted automatically based on
nature of transaction

MM Configuration
21. Define Valuation Classes
T.Code: MSK

• Select Valuation class 3000
• Select Copy as button

• Give Valuation Class
• Enter
• Save
Note: Create other Valuation Classes

FI Configuration
1. Creation of GL accounts
1. Raw Materials
2. GR/IR Clearing Accounts
3. Raw Material Consumption
T.Code: FS00

1. Raw Materials - Steel

2. GR/IR Clearing Accounts

3. Raw Material Consumption a/c - Steel Consumption

MM Configuration
23. Assignment of accounts for Automatic Postings

MM Configuration
24. Document Types and Number Ranges

• Select Cancel button
• Select Accountant Assignment Button
• Double Click on Transaction type BSX

Assignment of GL accounts for Inventory Posting
• Enter

• Assign RM GL accounts as above
• Back

B. Assign GL Account for GR/IR Clearing Account - WRX
C. Assignment of Gl accounts for RM Consumption - GBB

B. Assign GL Account for GR/IR Clearing Account - WRX

C. Assignment of Gl accounts for RM Consumption - GBB

Document Types and Number Ranges
T.Code: OBA7, FBN1
Document Type Description Reversal
WE Goods Receipt WE
WA Goods Issue WA
RE Gross inv. Receipt RE

Basic Testing
1. Creation of Raw Material Master

2. MM Periods
• OMSY - Open
• MMRV - Check
• MMPV - Open & Close
• MMPI - Open the period when wrongly closed

3. Create Vendor Master Data
T.Code: XK01

• Enter 4 times

• Enter 3 times

4. Creation of Purchase order PO

5. Goods Receipt

Display FI Document
• Enter

Add Different Fields from Change Layout

6. Invioce Verification

• Select Simulate button

• Post

To Dispaly Document

7. Check PO History
T.Code: ME23N

8. Dispaly Stock Register
T.Code: MMBE

9. Issue Stock for Consumption
T.Code: MIGO

• Enter
• Save

10. Check Material Master
T.Code: MM03

FI - MM.pptx

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