Material Master Notes

8/13/2019 Material Master Notes

http://slidepdf.com/reader/full/material-master-notes 1/18

Ch Srinivas Naidu

SAP SD Certified Consultant

Ph.09246188809

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MATERIAL MASTER

Product or material details are going to be maintain as a master data like

description,demenssions,various material groups,cost price,sales price,accounting data,purchasing

data,sales data etc.

From procuring one material as a raw material fill to make it as a finished

product and its sales and distribution,one material may be processed by various department in the

business.So that relavent data has to be maintain by the respective business user’s.Accordingly material

master has been structured in such as way that every material master is made up with certain structure

like……..

a)Initial Screen

b)Data Screens/Main view’s/User Departments/Main Screens.

c)Additional Screens.

Respective views are going to be configured by respective functional consultants & respective view

are going to be maintain by respective business users.

Material master is one of the integration area of all modules.

Material Master Tables:-

MARA:-General material data.

MATNR:-Material Number.

MARD:-Storage location dta for material.

MARC:-Plant data for material.

MVKC:-Sales data for material.

Functional Accounting Global Settings:-

Path:-IMG Financial Accounting Financial Accounting Global Settings Fisial Year

Maintain Financial Year Varient:-



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Every business fallow’s certain time period ex:-12mnths as a one financial year which

is nothing but a one ficial year for which business wants to know it performance & growth by generating

certain financial reports like P/L accounts,balance sheets.



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For every financial year maximum 4 mnths as a special periods are going to allowed after

financial year so as to post back date posting for certain financial adjustments(Adjustment Entries)

before closing books of accounts & generating financial reports for specific financial year.

In SAP different type’s of fisial year varients are defined

ex:- a)K4-calender dependent-JAN to DEC.

b)V3-Year dependent-April to March.

Assign company Code to a Fiscal Year Varient:-

Define,Open, & Assign posting period varients to company code:-

In SAP different type of accounts has been grouped into

a)G/L Account (S)

b)Customer Account (D)

c)Vendor Account (K)

d)Assets Account (A)

e)Contract Account (V)

All these type of business transaction are going to be posted for a specific posting period

ex:-every one month in one financial year so that every current month has to be closed & new

one has to be open.

In this work step current financial year with current posting periods are going to be open &

assign to respective company code under different account types.

There are called FI posting periods in real environments.

Path:-IMG Financial A/C Financial Accounting Global Settings Document

Posting periods

Company Code Fiscal year Varient

REIN K4



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Define Varients For Open Posting Period:- Ex:-1000

Open & Close Posting Periods:-

Make sure that for our fiscal year varients 1000 for all accounting type’s ex:-

+,A,D,K,M,S,V Current fiscal year ex:-2013 has been maintain allow with 4 special periods.

Assign varient to company code:-

Define & Assign Financial Documents to Company Code:-

All financial related transaction are going to be captured into respective financial

document.In this work step various financial documents are going to be define & assign to company

code.

Path:-IMG Financial Accounting Financial Accounting Global Settings Document

Document Header

Define Document Types:-

Choose Financial Document Type Ex:-RV(Billing Document Transfer)

Select it,Go to details Icon

Click on no.range information Icon.

Specify our Company Code : REIN

Click on Change Interval Icon

Click on Insert Interal Icon

Specify no.range Key A1

Specify Current Fiscal Year 2013

Company Code Posting Period Varient

REIN 1000



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Specify from no. to no.& Current no. SAVE it & GO Back

Assign no.range key A1 in properties section SAVE it & Go Back.

Carry out same process for other financial year document Like

Document:-

Assign Tax Calculation Procedure To Company Code:-

Path:-IMG Financial Account Financial Accounting Global Settings Tax on Sales &

Purchase Basic Settings

Assign Country to Calculation Procedure:-

General Ledger Accounting Configuration Settings:-

a)Define & assign chart of accounts to company code:-

List of G/L accounts is called chart of accounts.It is a index for all G/L accounts

that are going to be used by the business to post various financial transactions.

One chart of accounts can be assign to no.of company code’s if they maintain same

currency.

TYPE DESCRIPTION

WA GOOD ISSUE

WE GOOD RECEPIT

WI INVENTORY DOCUMENT

WL GOODS ISSUE/DELIVERY

Country Tax Procedure

IN TAXSG



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Path:-IMG Financial account G/L Account G/L Accounts Master Data

Preparations

a)Edit chart of A/C List-----Ex:-INT International Chart Of Accounts.

b)Assign Company Code to chart of Accounts.

Company Code Chart Of Account

REIN INT



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Copy standard G/L accounts from company code 1000 to our company code.

Path:-IMG Financial Accounting G/L Accounting G/L Accounts Master Data G/LAccounts create & Processing Alternative Methods Copy G/L Accounts Copy

Company Code

Specific our company code--- REIN

Specify copy from company code----1000

Then select test run & execute.

MM Configuration Settings:-

Assign Company Codes To Material Management Functions:-

AS every material goods movement is going to be tracked & valuated for a

specific time period EX:-every month is going to be defined as a posting period under specific fiscal year

in this work step current posting period is going to be opened(according to fiscal year variant) as well as

back date posting for inventory may also allowed.

Note:-In the real environment concern person in the business has to close current month posting period

before system dates gets changed to new posting period i.e.,at least midpoint at 12 o’clock of 30th or

31st of the month by using T Code[MMPY].

Path:-Logistic General Material Master Basic Settings Maintain Company Code

For Material Management [OMSY].

Define Various Material Types/Quality & Value Updation Under Valuation Area [OMS2]:-

According to certain control parameters material are going to be group into different

material type ex:-Raw material,semi finished products,finish products etc.

Depending upon the material type every goods movements of that material may be

relavent for quantity updation as well as value updation so that in this work step different,material

Company Code Current Fisical Year Current Posting period ABP

REIN 2013 9



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types are going to be defined & those may be allowed for quantity & value updations under specific

valuation area (PLANT).

Path:-IMG Logistic General Material Master Basic Settings Material types

Define attribute of material types.

Ex:- Material Type Description

ROH Raw Material

FERT Finished Product

HALB Semi Finished Product

VERP Packaging

HAWA Trading Goods

LEIH Returnable Packaging

NLAG Non-stock Material

PIPE Pipeline Material

DEIN Service

KMAT Configurable Material

Select Standared material type -------FERT

Click on quantity /Value updating

Under dialog structure choose our valuation area-------repl palnt

Material Type-------FERT

Check quantity updating (YES) & Value updating (YES)

Save it…………..

Maintain Plant Parameters For Inventory Management:-

Path:-IMG Material Management Inventory Management & Physical Inventory Plant

parameters.

Choose Standered Plant Ex:-1000



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Select it.,Copy it & rename it.

With our plant REPL…

This workstep is mandatory to carryout all inventory management functions under one plant.

Assign Valuation Grouping Code to Valuation area:-

Path:-IMG Material Management Valuation & Account Assignment Account

Determination Without Wizard Group Together Valuation area.

This workstep is one of the pre requisite to post relavent stocks accounts for relavent goods

movements.

Create Material Master:-

Material master can be created & maintain by all logistic department.

Path:-Logistic S&D Master Data Products Material Other Material

MM01/Create.

a)Specify Material No.:-Internal or External depending upon the material type.

b)Industry Sector:- Ex:-M Mechanical Engineers

It is client specific depending upon the industry sector proposes relavent tab pages &

views in the material master by default & Faults.

Industry sector can be defined (by MM) one material master industry sectors cannot be

changed in later times.

c)Specify Material Type:- Ex:-FERT

Assigning material master to material type.

Depending on the material type system proposes

a)No.Ranges

Valuation Area Valuation Grouping Code

REPL 0001



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b)Item Category Group.

c)Procurement Type(Internal/External or Both)

d)Price control (stand/moving average price) etc by default in one material master.

One material masters material type can be changed in later times.

Ex:-From HALB To FERT.

Click on select view’s

Select view’s

Basic data 1

Sales:Sales org data 1

Sales:Sales org data 2

Sales:General/plant data

General plant data/storage 1

General plant data/storage 2

Accounting

Click on Organisational levels

& Maintain organization levels:

Click on Continue & Maintain Data in

1.Basic data :-

A) Specify material description-Renual-Duster

Plant - REPL

Sal.Location - SL1

Sal.Org - RESO

Dist.Channel - D1



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Only 40 Charecters.

B)Specify Base Unit Of Measure:-

In which stock is going to be maintain (SKU) & material stock valuation takes

place.One material can have alternative unit of measures.

BASE UNIT OF MEASURE

Alternative Unit Of Measure

Sales Unit Of WareHouse Unit

Measure(SD) Order Unit Unit Of Measure (WH)

(MM-PO) (MM-IM)

For every alternative unit of measure conversion factors should be maintain

Ex:- 1BOX = 10Each(EA)

Oum Bsum

Respective alternative unit of measure will be respective application.

If Alternative unit of measure are not maintain then system automatically propose base unit of

measure as a alternative unit of measure.

C)Material Group:- Ex:- 02001 Car.

Grouping of the material based on certain charecterstic attributes that can be used for

statistics information purpose.

D)Assign Division:- Ex:-S2

E)General Item Category Group:- Ex:-NORM (Standard)



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Grouping of the material based on certain characteristic attributes as a general item

category group & item category group(Sales:Sales Org data 2 view) that is going to be used to classified

as standered item,free of change item or sevice item etc……….

F)Specify Gross Weight/Net weight:- Ex:-2-1

2)Sales:Sales Org.data 1:-

Specific sales unit of measure as a alternative unit of measure Ex:-BOX

Maintain Conversion Factors:-

That will be proposed into all sales & distribution documents.

Sales unit not variable(Variable sales unit of measure is not allowed).

If it is activated material master alternative unit of measure & sales document line item,sales unit of

measure differs than system doesn’t allow the sales.

Unit Of Measure Group:-In IMG all allow alternative sales unit of measure are going to be grouped

under one group & assign to one material master to sales the material in those alternative unit of

measure.

X-Distribution Chain Status:- Ex:-12 sales not allowed.

Valid Form:-

The combination of sales organization + Distribution Channel is called distribution chain.

Path:-IMG Logistic Geenral Material Master Settings For Key Fields Data

Relavent To S & D Define Sales Statuses.

Go to new Entries & define sales statuses

Ex:-12

Distribution Chain Specific Status:- Ex:-12

Valid Form:-

Specify specific reason to a particular distribution chain,So that the distribution chain

cannot sale that material form specific valid date.

Delivery Plant:-



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Assign relavent delivery plant to material master that is going to be used by the system to

determine one delivery plant for particular line item according to plant determination strategy.

Cash Discount:-

Check this control as a pre requisite to grand cash discounts for the material condition

type SKTO uses this control in pricing procedure.

Click on conditions icon-maintain sales price.

Tax Classification:-

Specify tax classification no. ex:-1 full tax that is going to be used by the system as one

of the factor to determine output tax.

Minimum Order Quantity:-

Specify minimum order quantity that should be placed for the material other system

may throw warning or error message.

Minimun Delivery Quantity:-

Ex:-5 that should be delivered otherwise system throw warning or error message.

Delivery Unit:-

Specify alternative delivery unit of measure with required quantity.

Ex:-5 Boxes,So that delivery can be created only in its increments.

I.e., 5 box,10 box,20 box,25 box etc………..

Rounding Profile:-

In IMG rounding profiles can be define & assign to material so as to optimize order

quantities.

In SAP there are 3 types of rounding profile can be created that are

For IS a)static rounding profile

Retail System b)Dynamic rounding profile

c)Quantity –Addition/Substraction.

In Static rounding profile order quanties are always rounded up:



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It involves 2 aspects that are:-

a)Thresh Hold Value

b)Round Up Value.

Thresh hold value specifies the order quantities from where system has be round up.

Round Up value specifies upto which quantity system has to round up.

Path:-IMG Logistic General Quantity Optimizing & allowed Logistic Unit Of Measure

Maintain Rounding Profile.

Specify rounding profile key---ZRP4

Specify plant ---REPL

Click on Static

Specify description & Maintain.

Thresh Value Rounding Value



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Click On simulation.

3)Sales:sales Org.data2:-

a)Material Statistical Group:-specify statistical relevance of the material as one of the prerequisite to

update one material stastical data into SIS

b)Material pricing group:- Ex:-01(standard parts) grouping of the material based certain characteristic

groups into different material price group that is going to be used in pricing Ex:- to grant discounts.

“Condition type KO2G” uses this field in the pricing procedure.

c)Volume rebate group:- Ex:-01 maximum rebate grouping of the materials into different volume rebate

groups as one of the prerequisite to grant rebate based on certain sales volume of the material.

“Condition type BOO2” uses the value of this field in rebate pricing.

d)Account Assignment group:- Ex:-01-trading goods

02-services

03-finished goods

Grouping of materials sales revenues, sales deductions, freight revenues, & tax revenues etc.., based on

certain criteria as one of the prerequisite to post the value of those revenues & deductions in respective

G/L accounts as a part of SD & FI integration.

e)Item category group:- Ex:-“NORM standard item” grouping of the materials based on certain

characteristic item attributes as a different item category groups that is going to be used by the system

as one of the factor to determines one sales document line item as a Ex:-

So, as to control the sales document line item for certain factors like pricing, billing, schedule lines etc..,

a) TAN- Standard item

b) TANN- free to change

c) TAD- service item

d) TATX- Text item

e)

TAW- value itemf) TAB- India.p.o.item

g) TAS- third party item etc..,



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Above is default Item Category of line item Ex:-“TAN”

Depending on the material types system proposed item category group in the material master..

Ex:-Item Category Group…..

0001---Make to Order

0002---Configaration

BANC---Indirect Purchase Order

BANS---Third Party Item

DIEN---Service With Delivery

ERLA---Structure/Material Above BOM

LUMF---Structure/Material Below ITEMS

LEAS---Leasing

VERP---Packaging

LEIH---Returnable Packaging

LEIS---Service Or Delivery

NLAG---Non-Stock Material

VCIT---Value Contract Item etc…..

4) Sales: (General/plant):-

a) (Checking group of) Availability check:- The value of this field determines weather system has to carry

out “availability check” for one material if it is placed in one sales document or delivery document to

confirm the quantities on the requested delivery date.

“Avalability check” If it has to carry out availability check it also specifies whwt kind of requirement it

has generate that are individual requirements or collective requirements through MRP-(Material

requirement planning) MD04



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If it is individual requirements immediately transfers sales order or delivery or customer specific

individual requirement to MRP as soon as sales order has been saved where as in collective

requirements system collectively transfers per day or per week.

Together with “Checking rule” this checking group of availability check controls avaibility checks process

that means availability checks is going to be controlled by checking groups of availability check +

checking rule.

Checking rule specifies the scope of the availability check that means during availability check system

calculates(ATP-available to promise) quantities by following a formular called….

ATP(available-to promose) = WH stock + planned receipts – planned issues.

That means through checking rule only system can undersatand what kind of MRP elements Ex:-[PR,PO,Planned Order,Production Order,sales order,deliveries,different type of stock etc] whether

system have to include or exclude as a planned receipts & planned issues in ATP quantity calculation.

Checking Group of availability check is automatically determine in the material master depending

upon the material type & delivery plant.

Batch Management:-

Check this control as apre-requisite to process one material in batches.

Transportation Group:-

Grouping of the materials that are required similar requirements for transportation.

Ex:- 0001----paleHes

0002---In Liquid Form

0003---Container

The value of this field use by the system as one of the factor to determine “ROUTE” for particular line

item in one sales documents.

Loading Group:-

Ex:- 0001---Crane

0002---ForkLIft

0003---Mannual



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Grouping of the Materials that are required similar requirements for loading…

The value of this field used by the system as one of the factor to determine shipping point.

Plant Data/Storage/And Plant Data/Storage 2:-

Valuation Class:- Assign valuation EX:-7920---Finished products as one of the pre-

requisite to post stock account for relavent goods movement as a part of MM & FICO integration.

Price Controls:-

Ex:- S-Standered Price

V—Moving Average Price.

Depending Upon Material type system proposes this price controls.

It represents “Cost” of the material & that is production cost,or procuremen cost.

For internally procued materials standered price & for external procured materials moving average price

is going to be maintained or used.

So as to evaluate the stock this standered price or moving average price is going to be used.

When production order or process order os going to be evaluated after releasing stabdered cost

estimate run in co module,System automatically updates the standered price.

When PGI system uses the standered price to calculate COGS(Cost Of Goods Sold) account.

In SAP-SD te standered price or moving average price is going to be used as a cost(Condition VPRS) to

calculate profit margin of the line item material.

Moving average price is going to be used to calculate procurement cost if one material is being

procured from number of vendors..

Maintain standered price---Ex:-1000

Save it & Note down material No……