Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Introduction to sap r3 (mm)

5,713 views

Published on

sap mm overiview

Published in: Education, Technology, Business
  • Be the first to comment

Introduction to sap r3 (mm)

  1. 1. Introduction SAP R/3 – MM Dr. Djamal Ziani King Saud University
  2. 2. ERP-Software: SAP R/3 Sales and Distribution Material Management SD Financial Accounting FI CO MM R/3 PP AM Client / Server PS ABAP/4 QA OC PM HR IS Controlling
  3. 3. Components of Materials Management 3
  4. 4. Organizational Data • A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions • Are static data and are rarely changed • The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured 4
  5. 5. Organizational Structures
  6. 6. Organizational Structures • • • • • • • Client Company Plant Valuation Area Storage Locations Purchasing Organizations Purchasing Groups 6
  7. 7. Organizational Structures: Client • The client is a unit within an SAP R/3 system that is self-contained both in legal and organizational terms and in terms of data, with separate master records and an independent set of tables. • From a business viewpoint, the client represents a corporate group, for example. • Client: 3 numerical digits
  8. 8. Organizational Structures: Company & Company code • The company code is the smallest organizational unit of external accounting for which a complete, self-contained bookkeeping system can be replicated. • A company code represents an independent unit producing its own balance sheet, for example, a company within a corporate group (client). • Company code = 4 characters
  9. 9. Organizational Structures: Plant • Lowest valuation area • Organizational level where Material Requirements (MRP) runs • Generally used to describe a production site, a distribution center or centralized warehouse • May be a physical or logical unit 9
  10. 10. Organizational Structures: Valuation Area • The valuation area determines at which level a material is valuated (inventory value is established) • SAP R/3 allows valuation at the company code or plant level, but recommends valuation area be set at the plant level. • Means each plant can have its own material prices and account determination 10
  11. 11. Organizational Structures: Storage Location • Subdivision of a plant • Where materials are managed (inventory management) – Raw Materials – Maintenance, Repair, and Other (MRO) – Finished Product • May be a physical or logical unit 11
  12. 12. Organizational Structures: Purchasing Organizations • An organizational unit responsible for procuring materials or services for one or more plants and for negotiating general conditions of purchase with vendors. • The purchasing organization assumes legal responsibility for all external purchase transactions.
  13. 13. Purchasing organization material group purchasing organization purchasing group MG 0, 3 purchasing group MG 1, 4 purchasing group MG 2, 5 purchasing group MG 6 plant purchasing group MG 7, 8, 9
  14. 14. Organizational Structures: Purchasing Organization Groups •The purchasing organization is further subdivided into purchasing groups (buyer groups), which are responsible for day-to-day buying activities. A purchasing group can also act for several purchasing organizations.
  15. 15. Inventory Management with a Warehouse Management System 0001 – ABC inc. 0001 – ABC inc. client company code 0001 – Jones inc. purchasing organization plant distrib.0001 center 0001 storage location 0001 0001 0001 0001 0002 0002 0002 0002 0003 0003 0002 0002 warehouse number storage type storage bin (physical stock) 0002 – Model Ltd. 0003 0003 0004 0004 0003 0003 0001 0001 MM factory 0004 0004 001 001 001 001 WM 002 002 05-04-03 05-04-03 05-04-04 05-04-04
  16. 16. The Module MM – Main Functions
  17. 17. MM – interdependencies to other modules Logistik PP production planning MM material master SD sales and distrib. purchasing requirements plan. QM quality management FI financial acc. inventory mgmt. invoice verification CO controlling PM plant maintenance AM fixed assets mgmt.
  18. 18. Basic Data • Master records - include information about 1. vendors 2. material and services to be procured 3. the relation between 1. and 2. (purchasing info record) e.g. prices / terms and conditions • bills of material for – – – – production planning purchasing sales and distribution withdrawal of Material
  19. 19. Structure of the Vendor Master Record sections utilization area of validity  General data • name • address • control data client wide  purchasing • terms and cond. • partner functions • currency • • • request for quotation quotation processing purch. order handling  accounting data • bank account • acc. maintenance • payment • • • invoice entry invoice verification payment handling for each purchasing organization client wide or for each company code
  20. 20. Create a Vendor Creating Your Own Vendor Master Record Usage We recommend that you create your own vendor master record for this scenario. If, however, you prefer to use the reference vendor instead, it could be that the order currency has already been changed and this IDES scenario may no longer work. You create a German vendor in company code 1000, IDES AG Germany, to create purchase orders and invoices denominated in euros.
  21. 21. Create a Vendor Procedure 1.Call up the transaction as follows: Menu Path Logistics → Materials Management → Purchasing → Master Data → Vendor → Central → Create Transaction Code XK01
  22. 22. . Create a vendor On the Create Vendor: Initial Screen, enter the following data: Field Data Vendor Your own vendor (choose a number between 1000 and 1999) Company code 1000 Purch. organization 1000 Account group LIEF Reference vendor 1080 Reference company code 1000 Reference purchasing organization 1000
  23. 23. Create a Vendor On the Create Vendor: Address screen, enter the following data: Field Data Description Any Search term Any, for example "euro" Street/House number Any Postal code/City 5-figure, numerical (any) Country DE Language DE
  24. 24. Create a Vendor 1. Choose until you reach the Create Vendor: Accounting and make sure that 160000 appears in the Reconciliation Account 160000 field. 2. Choose appears. until the Create Vendor: Purchasing Data screen 3. On the Create Vendor: Purchasing Data screen, check that the order currency is EUR. 4. Choose appears. until the Create Vendor: Partner Functions screen 5. Choose appears. until the Create Vendor: Partner Functions screen 6. Choose appears. until the Create Vendor: Partner Functions screen
  25. 25. Create a Vendor
  26. 26. Create a Vendor
  27. 27. Create a Vendor
  28. 28. Views on the Material Master Record each view is maintained by a certain user department of the firm        accounting: valuation- und calculation-specific information requirements planning: information about material requirements planning (e. g. reorder point) purchasing: e. g. responsible purchasing group, order unit engineering: technical information storage: information about warehousing, material movements, ... forecast: information about the forecasting of the material requirements S & D: informationen about sales orders and price determination
  29. 29. Demo: Create Material Master
  30. 30. Demo: Create Material Master •Select the views: Basic data 1, Purchasing, Purchase Order text, Gl. Plant Data/Storage 1, Accounting 1
  31. 31. Demo: Create Material Master
  32. 32. Demo: Create Material Master
  33. 33. Demo: Create Material Master
  34. 34. Demo: Create Material Master
  35. 35. Demo: Create Material Master
  36. 36. Demo: Create Material Master SAVE
  37. 37. purchasing info record info record prices terms & cond. PO statistics tolerance levels date quotation outline agreement order
  38. 38. Purchasing Process PO ? = invoice X X X invoice verification X X determination: requirements vendor X X X goods received & inventory mgmt. MM X outline agreem. X determination: source of supply vendor 22 vendor vendor 11 vendor PO PO PO PO monitoring purchase order processing ? vendor selection
  39. 39. Create Purchase Order (PO) vendor 22 vendor purch. order 1 vendor known terms & cond. 2 vendor not known source list purch. order outline agrement info record vendor 3 assigned purchase requisition exists (from user department) vendor 22 vendor purch. req. purch. order
  40. 40. Purchasing Process • Create a requisition • First release of requisition • Create RFQ (Request for Quotation) with reference to requisition • Create PO (Purchase Order) with reference to RFQ • Department receives material ordered (GR) • Department pays invoice (MIRO).
  41. 41. Purchase Requisition Document generated by a user department or storeroom-personnel to notify the purchasing department of items it needs to order, their quantity, and the timeframe. It may also contain the authorization to proceed with the purchase. Also called purchase request or requisition.
  42. 42. Request for Quotation Is a standard business process whose purpose is to invite suppliers into a bidding process to bid on specific products or services. RFQ generally means the same thing as IFB (Invitation For Bid)
  43. 43. Purchase Order Buyer-generated document that authorizes a purchase transaction. It sets forth the descriptions, quantities, prices, discounts, payment terms, date of performance or shipment, other associated terms and conditions, and identifies a specific seller.
  44. 44. Create Purchase Requisition
  45. 45. Create Purchase Requisition
  46. 46. Create Purchase Requisition • In the item, enter your material, Plant= 1000, QT = 100
  47. 47. Create Purchase Requisition • Save your Purchase requisition • Take note of Purchase requisition number
  48. 48. Demo: Create Purchase Order
  49. 49. Demo: Create Purchase Order • Open document overview: Click on document overview button • Choose “Selection variant list” icon •Then select “My purchase requisition”, you will get your purchase requisition listed •Click on “adopt” icon, your purchase requisition will be copied to the purchase order (or you can drag and drop it into the shopping cart)
  50. 50. Demo: Create Purchase Order
  51. 51. Demo: Create Purchase Order • Enter your vendor, and price 30 euro and save
  52. 52. Posting an Order Entry (Goods Receipt) Logistics PP production planning MM purchasing req. planning goods receipt SD sales and distrib. inventory mgmt. goods issue. QM quality management FI financial acc. inventory controlling transfer posting invoice verification CO controlling PM plant maintenance AM fixed assets mgmt.
  53. 53. Demo: Posting Order Entry (Goods Received) 1. Use T_code : MIGO 2. Select Goods Receipt 3. Select Purchase Order 4. Enter PO number for goods to be received. 5. Hit "Enter"
  54. 54. Demo: Posting Order Entry (Goods Received) 6. Enter Document date & posting date 7. Enter Header text (comment) if necessary. 8. Close detail data.
  55. 55. Demo: Posting Order Entry (Goods Received) 9. Notice that movement data is "101" 10. If you only received first item, then Check the "OK" box for first line item.therefore, the second item need not be processed
  56. 56. Demo: Posting Order Entry (Goods Received) 11. If you only received 3 pcs out of 10 pcs of item one & 2 pcs out of 10 pcs of item two, then Check the "OK" box for both line item 12. Input actual quantity (3 & 2 pcs ). 13. Hit "Enter"
  57. 57. Demo: Posting Order Entry (Goods Received) 14. Click "Check" button to find out if there is any error. 15. Check the "status" column . . Green means OK . Yellow means Warning . Red means error
  58. 58. Invoice Verification input information orders goods receipt master data: material vendors accounts terms & cond. invoice verification output information actions: • • • • enter invoice verify invoice post invoice update relevant data • (re-edit invoice) financial accounting asset management cost accounting
  59. 59. Create Invoice Create Invoice using Tcode MIRO Enter the Required details in all Tabs Enter the Purchase order no. and click on Enter, to display the material details.
  60. 60. Create Invoice (contd..) Click the check box, to calculate the Tax
  61. 61. Create Invoice (contd..) Enter the Amount and click on save
  62. 62. Create Invoice (contd..) Invoice is created
  63. 63. Demo: Invoice Verification Using the tcode: MIRO"
  64. 64. Demo: Invoice Verification
  65. 65. Demo: Invoice Verification net amount for positions

×