SAP MM (Material Management) is one of the most important modules in SAP ERP software program. SAP MM software module supports the procurement and stock capabilities going on in each day organization operations.
Every agency acquires material or offerings to complete its enterprise needs. The process of buying materials and acquiring offerings from providers or dealers is procurement.
Configuring SAP Organization Structure for SAP MM,SD,FIPavan Golesar
Hello there, I am Pavan Golesar. I run my brain so innovatively that I need supplementary place to store it. Thus I represent you my alternative brain storage space as a website and youtube channel: www.abaper.weebly.com www.explore16k.weebly.com www.youtube.com/channel/UCljfU3cc23f5khN24rbzHeA
Regards,
Pavan Goleasr
#Ethic Coder
In this presentation you can learn the topics regarding Material Master with respect to SAP MM. The configurations involved and their usability in different Projects. The questions that will be asked in interview with respect to SAP MM.
Refresher of basic Materials Management terms. Sometimes the simple things are all that matters. These slides are easy to understand and would remind you what SAP MM is all about.
SAP MM (Material Management) is one of the most important modules in SAP ERP software program. SAP MM software module supports the procurement and stock capabilities going on in each day organization operations.
Every agency acquires material or offerings to complete its enterprise needs. The process of buying materials and acquiring offerings from providers or dealers is procurement.
Configuring SAP Organization Structure for SAP MM,SD,FIPavan Golesar
Hello there, I am Pavan Golesar. I run my brain so innovatively that I need supplementary place to store it. Thus I represent you my alternative brain storage space as a website and youtube channel: www.abaper.weebly.com www.explore16k.weebly.com www.youtube.com/channel/UCljfU3cc23f5khN24rbzHeA
Regards,
Pavan Goleasr
#Ethic Coder
In this presentation you can learn the topics regarding Material Master with respect to SAP MM. The configurations involved and their usability in different Projects. The questions that will be asked in interview with respect to SAP MM.
Refresher of basic Materials Management terms. Sometimes the simple things are all that matters. These slides are easy to understand and would remind you what SAP MM is all about.
ERP and Related Technologies
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Software Engineering, Software Consulting, Tech Lead.
Spring Boot, Spring Cloud, Spring Core, Spring JDBC, Spring Security,
Spring Transaction, Spring MVC,
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3. Master Data in Materials Management
Master data comprises data records that are stored in the database
for a long period of time. These data records are stored centrally,
and are used and processed on a cross-application basis. In this way,
the multiple storage (redundancy) of data is avoided.
The vendor master record, the material master record, and the
purchasing info record belong to the most important master data in
the procurement process.
4. Master Data in Materials Management
Learning Objectives
This presentation states and briefly describes Master Data used in
the procurement process with the aim of giving more insight on the
process.
5. Master Data in Materials Management
The following Master Data pertains to the MM module
• Vendor Master
• Material Master
• Purchasing Info Record
• Source Lists
• Quota Arrangement
7. Master Data in Materials Management
Vendor Master
Lesson Objectives
• After completing this lesson, you will be able to:
• Explain the significance of vendor master records
• Create and maintain vendor master records
• Name the organizational levels that are important for the
maintenance of vendor master records
8. Master Data in Materials Management
Business Example
Your company has entered into a business relationship with a new
vendor. Since you intend to place orders with this vendor frequently
in future, you create a new master record for the vendor.
9. Master Data in Materials Management
The vendor master record contains information on an enterprise's
vendors. This information is stored in individual vendor master
records. In addition to the vendor's name and address, a vendor
master record contains data such as the following:
• Currency used in transactions with the vendor
• Terms of payment
• Names of important contacts (e.g. salespersons)
10. Master Data in Materials Management
Since, for accounting purposes, the vendor is also a creditor of the
enterprise, the vendor master record also contains accounting data
such as the reconciliation account from the general ledger.
The vendor master record is therefore maintained by both
purchasing and accounting.
12. Master Data in Materials Management
General data:
This data is valid for the whole client. It includes the vendor's
address and bank details, for example.
Accounting data:
This is maintained at company code level. It comprises data
such as the number of the reconciliation account and the
payment methods for automatic payment transactions.
Purchasing data:
This data is maintained for each purchasing organization. It
includes the purchase order currency, Incoterms, and various
control data pertaining to the vendor. You can also maintain
different data for specific plants or for vendor subranges.
13. Master Data in Materials Management
You can decide whether vendor master records are to be maintained
centrally (that is, all data is maintained together), or on a
decentralized basis (that is, the relevant departments each
maintain their own data).
15. Master Data in Materials Management
If you only give your purchasing staff the authorizations for
transactions MK01,MK02, and MK03 (Logistics → Materials
Management→ Purchasing → Master Data → Vendor → Purchasing
→ Create/Change/Display), they will only be able to maintain the
general address and control data and the purchasing-specific data .
Accounting personnel must enter the payment transaction data and
the company-code-specific data.
16. Master Data in Materials Management
However, you can also give your staff authorization to maintain the
vendor master data under the menu path Logistics → Materials
Management → Purchasing → Master Data → Vendor → Central →
Create/Change/Display (transactions XK01, XK02, XK03).In this
case, staff can maintain all the data in the vendor master record.
17. Master Data in Materials Management
Account Group
When creating a vendor master record, you must decide which
account group you are going to assign to this vendor. The account
group has control functions.
When you maintain the vendor master record, for example, only the
screens and fields that are needed for the relevant role of your
business partner appear and are ready to accept user input. This is
controlled by the account group.
19. Master Data in Materials Management
Among other things, the account group determines:
• The type of number assignment (internal or external) and the
number area from which the account number that the system uses
to identify the vendor is to be assigned
• The field selection - which fields are ready for user input, which
fields must be maintained, and which fields are hidden
• Which partner schemas are valid
• The status - whether the vendor is a one-time vendor (see below)
20. Master Data in Materials Management
Reconciliation Account for Vendor Master Record
When creating a vendor master record, you must also maintain a
reconciliation account. The reconciliation account is a G/L account
in G/L accounting. It depicts a company's liabilities towards several
vendors in G/L accounting.
When entering invoices, you enter the vendor and the system
produces the reconciliation account from the vendor master record.
21. Master Data in Materials Management
Blocking Vendors
In certain cases, you may wish to stop the procurement of goods
from a certain vendor. This may be, for example, because the
vendor has supplied you with products of inferior quality. In such a
case, you have the option of blocking the vendor in the vendor
master record. Once you have set the blocking indicator, purchase
orders can no longer be placed with this vendor. The block applies
until you deselect the indicator.
22. Master Data in Materials Management
If you wish to prevent just one particular material from being
procured from this vendor, block the vendor in the source list for
the material, not in the vendor master record.
To block a vendor master record, choose from the Purchasing menu,
Master Data → Vendor → Purchasing → Block (transaction
MK05).You can decide whether the vendor is to be blocked for just
one purchasing organization or for all.
23. Master Data in Materials Management
You also have the option of setting the Block for quality reasons.
The Block for quality reasons is effective only for materials for
which quality management is active in procurement. The blocking
function used here determines which procurement function (such as
RFQ or purchase order) is to be blocked for quality reasons.
24.
25. Master Data in Materials Management
Material Master
Lesson Objectives
After completing this lesson, you will be able to:
• Explain the significance of material master records
• Create and maintain material master records
• Name the organizational levels that are important for the
maintenance of material master records
26. Master Data in Materials Management
Business Example
Various departments in your enterprise access and use existing
material master records. Check how such master records can be
created and extended.
27. Master Data in Materials Management
The material master record is an enterprise's main source of
material-specific data. It is used by all areas of logistics.
The integration of all material data in a single database object
eliminates the problem of data redundancy. All areas, such as
purchasing, inventory management, materials planning, and invoice
verification, can jointly use the data stored.
29. Master Data in Materials Management
The data stored in the material master record is required for many
purposes, including the following:
• Purchasing data is required for ordering purposes
• Inventory management data is needed to post goods movements
and carry out physical inventories
• Accounting data is required for material valuation
• Materials planning data is needed for material requirements
planning
30. Master Data in Materials Management
Since different user departments within an enterprise work with
one material, and each department enters different information
relating to it, the data in a material master record is subdivided
according to area of use. Each user department thus has its own
view of a material master record and is responsible for maintaining
the data covered by this view.
32. Master Data in Materials Management
The data screens used to process material master records can be
subdivided into the following types:
Main data
• These are the screens for the individual user departments, such as basic
data, materials planning, and so on.
Additional data
• These are the screens on which you find additional information, such as
alternative units of measure, material short descriptions, and
consumption values.
34. Master Data in Materials Management
Client, plant, and storage location play a role when you enter data
for purchasing, inventory management, and accounting. Other
organizational levels can be relevant for other departments. For
example, the sales and distribution data is entered depending on
the sales organization and the distribution channel and you must
specify a warehouse number and storage type for the warehouse
management data.
35. Master Data in Materials Management
Create Material Master Record
Choose Logistics → Materials Management → Material Master →
Material → Create (General) → Immediately (MM01).
37. Master Data in Materials Management
When creating a new material master record, you must choose a
material type and an industry sector to which the material is to be
assigned.
39. Master Data in Materials Management
Material Type
Among other things, the material type controls:
• The type of number assignment (internal or external)
• The permissible number range intervals
• Which screens appear and in which order
• Which user-department-specific data is suggested for entry (in views)
• Which procurement type is allowed for a material (that is, whether the
• material is produced in-house, procured externally, or both)
40. Master Data in Materials Management
Along with the plant, the material type determines a material's
inventory management requirement (whether quantity changes are
continuously recorded in the material master record and/or value
changes in the stock accounts of financial accounting).
Furthermore, the material type determines which accounts are
posted when a receipt of a material into (or an issue from) the
warehouse is booked.
42. Master Data in Materials Management
Industry Sector
Like the material type, the industry sector also has a control function.
When you create a material master record, the industry sector
determines:
• Which screens appear and in which order
• Which industry-specific fields appear on each screen
The industry sector you assign to a material cannot subsequently be
changed.
43. Master Data in Materials Management
Some data in the material master is used for information purposes
only, for example, description, size, and dimensions.
Other material data has a controlling function in an application. For
example, the MRP type controls the MRP procedure and the price
control indicator determines which material valuation procedure is
used.
44. Master Data in Materials Management
Extend Material Master Record
Once a department has created data for a material, the material
master record exists in the database. If someone from another
department later wishes to enter data, he or she does have not
have to create the material master record from scratch, but only
has to extend the existing record by adding the information from his
or her department. A material master is also extended when data
pertaining to the material is stored for further organizational levels.
47. Master Data in Materials Management
Purchasing Info Records Maintenance
Lesson Objectives
After completing this lesson, you will be able to:
• List the organizational levels relevant for purchasing info records
• List the ways in which purchasing info records can be created
• Maintain a purchasing info record
48. Master Data in Materials Management
Business Example
To help you determine sources of supply and prices, you can store
information for specific material-vendor relationships in the system.
You can enter conditions and other price elements such as freight
costs and reductions for a material, depending on the vendor and
the purchasing organization. You can also enter planned delivery
times, tolerances and terms of delivery.
49. Master Data in Materials Management
Purchasing info records
50. Master Data in Materials Management
The purchasing info record (info record) provides the option of
storing information about a vendor and a material as the master
data at purchasing organization and plant level. You can define the
following information in info records:
• Current and future prices and conditions (for example, freight and
discounts)
• Delivery data (for example, planned delivery time and over
delivery and under delivery tolerances)
51. Master Data in Materials Management
• Vendor data (for example, contact person) and vendor-specific data
about the material (such as the vendor subrange to which the material
belongs, description of material at vendor)
• Number of the last purchase order
• Texts.
The following type of texts are set in the purchasing info record:
• Internal info memo record: This is an internal comment that is copied to
the purchase order item. This text is not printed.
• PO text in the purchasing info record: This is used to describe the PO
item. It is copied to the purchase order item and printed.
52. Master Data in Materials Management
The purchasing info record is an important source of information for
the buyer. When creating the purchasing documents, the data from
the info record is copied into the document as default values.
You can also use the list displays for the info records to determine
which vendors offer a particular material or which materials can be
procured from a particular vendor.
A purchasing info record can be valid at both purchasing
organization level and plant level. It also includes general data that
is valid cross-client for every purchasing organization or every
plant.
54. Master Data in Materials Management
You can manually create or change an info record for a purchasing
organization or plant. In the purchasing menu, choose Master Data → Info
Record → Create (ME11), (or Change).
On the initial screen, you must then enter vendor, material, and the
organizational levels you want (purchasing organization or purchasing
organization/plant).
On the following data screens, enter the necessary data manually, for
example, planned delivery time, gross price and conditions.
Purchasing info records can also be created or updated automatically by
setting the Info update indicator when maintaining a quotation, purchase
order or outline agreement.
55. Master Data in Materials Management
Price Determination
If you create a purchasing document, the system attempts to find a
price for the material to be procured. The system always searches
from specific to general.
This means that when creating a purchase order, the system first
searches for a purchasing info record with the combination of
vendor/material at the purchasing organization/plant level. If there
is no such info record, the system then searches at purchasing
organization level. If there is no info record here either, you must
enter the price manually.
57. Master Data in Materials Management
Info Records and Prices
If a purchasing info record exists, then valid conditions have priority
during the price determination. If an info record does not contain
any conditions or only contains invalid conditions, the system reads
the number of the last purchasing document in the info record and
then suggests the price from this document. The prices determined
in this way are default values that can be changed by the buyer if
necessary.