SAP Materials Management Overview

SAP Materials Management (MM)
By
KMRSOFT
WWW.KMRSOFT.COM
Email : Info@kmrsoft.com

Overview of Materials Management
Material requirements
planning

External procurement

Internal procurement

Purchasing

Production

Invoice
verification

Invoice
receipt

Warehouse
management

Goods
receipt

Master data

Inventory
management
A

?

Goods
issue

Internal and external accounting

Transfer
posting

B

Sales and
distribution
SAP Trainings by KMR Software Services Pvt Ltd.
Email : info@kmrsoft.com

Material
Batch
Vendor
G/L accounts
Customer
Info Records
.
.
.

Organizational structures in R/3
Views

Organizational units
Company

Controlling areas

Cost accounting
External logistics

Sales organizations

Purchasing organizations
Company codes

Accounting
Valuation areas
Internal logistics
(MRP/production)

Plants

Inventory management

Storage locations/batches/special stocks


Purchasing
0001

Client

Company codes

0001

Purchasing
organizations

Plants

0002

0001

0001

0002

0002

0003

0003


0004

Inventory mgmt set-up without WM
Client

Plants

0001

Storage locations

0001

0002

0001

0003

0002


Organizational Entities in Purchasing
Purchasing group 1

Purchasing group 2

Purchasing organization 1


Purchasing
organization

Plant 1

Plant 2

Plant 2

Plant 10


Views in a material master record
Engineering

Purchasing

Requirements
planning

Sales and
distribution

St

t

A
B

Stocks in
plant-warehouse

Material
master record

Job
preparation

Accounting

Quality
management

Storage

Forecast

Warehouse
management

Classification

Vendor
Purchasing

Bank

purchase
order
DEUTSCHE
MARK
DEUTSCHE
MARK

Payment

Material

Vendor

DEUTSCHE
MARK

Invoice

order

account

?
=

Goods receipt

Invoice verification

Purchasing info records
Piece
%
Conditions

USD

Material

Info record
Vendor A

Info record

Stock material M1

Info record
Consumable
material M2

Info record

Vendor B

Info record

Service S1


Data in the purchasing info record
General data

Texts

Vendor data
Origin data
Order unit

Control data

Prices and
conditions

Delivery time
Minimum quantity
Tolerances

Gross price
Discounts
Freight

Price history
Purchasing statistics
Changes

Pricing
1
Pricing procedure RM000

2

3

4

1.Price
2.Discount RA00

PB00

Purchase order
Vendor 123
Item 10

120 pcs

PB00

Price

$99

Condition type:
PB00
Access sequence: PB01
Access sequence: PB01
1. Outline agreement
2. Vendor/material/
organizational level
3. Vendor/material group/
organizational level
Records for condition type
No valid record exists
Valid record exists

5

Scale
$100 for
$99 for
$98 for

1 pcs
100 pcs
200 pcs


Source list

1.1.95 - 30.6.95

1.7.95 - 31.12.95

Vendor 1 allowed
Vendor 2 allowed
Vendor 3 allowed

Vendor 1 fixed

Source list

Material M1
Plant 0001


Procurement Environment
Order

Invoice

MRP

?
7

Invoice verification

1

Requirement determination

MM
6

Goods receipt and
inventory management

Materials
management

2

Source
determination

Order

5

Order follow-up

3
4

Vendor selection

Order processing

Purchasing Documents
Purchasing
requisition

Purchase requisition
RFQ

Request for quotation

?
Quotation

A

Quotation

?

Quotation

B

Purchase
order

Purchase order
Contract

Contract
31.

1.

Scheduling
agreement

Effects of a goods receipt posting
Accounting document

Stock quantity
Consumption statistics
...

G/L accounts:
Stock account
Consumption account
...

Point of consumption
Cost center
Order
...

Material document

R/Mail to the order placer

Purchasing data:
Purchasing item
Purchase order history
...

Quality management:
Inspection lot

Warehouse mgmt:
Transfer requirement

Goods receipt

Goods receipt slip


Stock Types: Goods Movement
Receipts

Unrestricteduse stock

Stock in quality
inspection

Blocked stock

Scrapping/sampling

Withdrawals

Effects of a Goods Issue
Stock quantity
Consumption statistics
...

Material document
Accounting document
G/L accounts:
Stock account
Consumption account
...

Reservation

Point of consumption :
Cost center
Order
...
Goods issue
Warehouse management:
Transfer order


Course Content
Introduction to ERP
• What is ERP?
• Why we need ERP?
• Use of ERP business world
• Advantages of ERP
• Major ERP Packages

Introduction to SAP & R/3 Architecture
• What is SAP?
• History & Features of SAP
• Advantages of SAP over other ERP packages
• SAP R/2 Architecture (Limitations of R/2 Architecture)
• SAP R/3 Architecture (Types of work processes)

SAP NAVIGATION
• Login
• Sessions
• SAP Screens
• Features of SAP Navigations

Course Content
SAP-MM OVERVIEW
• Organization Data
• Master Data
• Transactions
• Reports
• Integration with other modules
ORGANIZATION DATA
• Creation of Plant
• Storage Location
• Purchase Organization
• Standard Purchase Organization
• Reference Purchase Organization
• Purchase Groups and Assignment
MASTER DATA
MATERIAL MASTER
• Material Types
• Assignment of Number Ranges to Material Types
• Creation of Materials Master
• Material Groups
• Change and display of Material Master etc

Course Content
VENDOR MASTER
• Vendor Account Group
• Number Ranges
• Assignment of Number Ranges to Vendor Account Groups
• Creation of Vendor Master
• One Time Vendor
• Partner Functions
PURCHASE INFO RECORD
• Number Range for Info Record
• Creation of Info Record with and without Plant etc.
• Change and Display of Info Record etc.
SOURCE LIST
PURCHASE REQUISITION
• Number Range for PR
• Define New Document type
• Requisition or Tracking No.
• Source Determination
• Assignment of Source

Course Content
REQUEST FOR QUOTATION
• Number Range for RFQs
• Define New Document type
• Create/Change/Display RFQ
• Print/Transmit RFQ
QUOTATIONS
• Maintaining Quotations
• Rejection of Quotation
PRICE COMPARISON OF QUOTATIONS
• Comparison of Quotations with Mean Price
• Maximum Price and Minimum Price
• Use of Collective Number for Comparison
PURCHASE ORDER
• Number Range for Purchase Order
• Create/Change/Display PO
• PO with Reference to PR/Quotation/Contract
• PO w/o Material Master


Course Content
OUTLINE AGREEMENTS:
Contracts
• Number Range for Contracts
• Value Contract
• Quantity Contract
• Centrally Agreed Contract
• Contract Release Order
• Contracts with Reference purchase Organization
Scheduling Agreement
• Number Range for Scheduling Agreements
• Creation of Scheduling Agreements
• Delivery Schedule
• Difference between Contract and Scheduling Agreement
PRICING PROCEDURE
• Domestic/Import Pricing Procedure
• STO Pricing Procedure
RELEASE PROCEDURES
Release Strategies for Purchase Documents
• Release Procedure for PR
• Release Procedure for External Purchasing Documents

Course Content
INVENTORY MANAGEMENT
GOODS RECEIPT
• Number range for Material Documents
• Movement Types
• GR W.R.T Orders/Deliveries/Others
• Different stock types for GR
• Reversal of GR
• Cancellation of GR
• Accounting Documents etc.
GOODS ISSUE
• GI W.R.T Order/BOM/Others
• A/C Document
STOCK TRANSFERS
• Plant to Plant/Store to Store
• One Step Procedure
• Two Step Procedure
TRANSFER POSTING
• Quality Stock to U/R Stock
• U/R Stock to Blocked Stock
• Blocked Stock to Quality Stock

Course Content
PHYSICAL INVENTORY
• Manual Physical Inventory
• Cycle Counting
LOGISTIC INVOICE VERIFICATION
INVOICE VERIFICATION
• Invoice verification
• Subsequent Credits
• Subsequent Debits and Credit Memos
• Parking of Invoices
• Blocking and Release of Invoices
• ERS etc.
SPECIAL PROCUREMENT PROCESS
• Consignments
• Pipeline Materials
• Sub Contracting Process
• Returnable Transport Packaging etc
• Third Party
• Intra and Inter Company Stock Transfer
SERVICE PROCUREMENT
• Service Master Record
• PO for Service

Course Content
SERVICE PROCUREMENT
• Service Master Record
• PO for Service
• Service Entry Sheet
• Invoice Verification for Service
SAP MM & FI Integration
VALUATION AND ACCOUNT DETERMINATION
• A/c Determination with Wizard
• A/c Determination w/o Wizard
• Split Valuation
SAP MM & PP Integration
• BATCH MANAGEMENT
• MRP
SAP MM & SD Integration
• STO’s (Stock Transfer Orders)
• Third Party Procurement

SAP Materials Management Overview

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