Materials Management Overview:

A.Introduction:

Materials management function covers the activities carried out in Purchase & Storesfunction. The Purchase function covers the activities like requirements (PurchaseRequisition), Inquiry to supplier (Request for Quotation), Purchase Order, Contract,Purchase Info Record, Source determination.

The stores function (Inventory Management) covers the activities like Receipt of goods fromsupplier, receipt of goods from production, Issue of material to subcontractor / production,periodic stock taking.

The module also covers the Vendor’s Invoice accounting.

B.Organization Structure:

The Organization Structure is the basic skeleton frame in SAP which structures theCompany, Organizational units, Manufacturing units and all other departments essential inrunning the business. The Organization Structure at Company and Company Code level isdecided by Finance and the Materials Management Organization Structures, which will belinked to those structures, will be as follows

Material Master:

Bill of Material

Resource / Work Center:

Master Recipe

Production Version:

Purchase requisition:

Purchase Order:

Quality Checking:

Master Inspection Characteristics (MIC):

Purchase Requisition

Material Master

Purchase Order

Goods Receive

Invoice

Quality Checking