Unit 11 Materials Management Rules

7/30/2019 Unit 11 Materials Management Rules

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Materials Management(MM)

- Rules -

Unit 11

MELJUN

CORTES


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January 2008 SAP AG - University 2

Business Process Integration

Rules

MM


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Rules

Defines the parameters for MasterData and Transactions

Determines functionality for MasterData and Transactions

Relatively fixed

Changes as policy changes


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R/3

FIFinancial

Accounting

COControlling

PSProject

SystemWFWorkflow

ISIndustry

Solutions

MMMaterials

Mgmt.

HRHuman

Resources

SDSales and

Distribution

PPProduction

Planning

QMQuality

Mgmt.PMPlant Maintenance

SMServiceMgmt.

Client / Server

Integrated Business

Solution

ECEnterpriseControlling

AMFixed Assets

Mgmt.

Materials Management (MM)


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Unit 11 Overview

Reservations

Tolerances

Purchasing Goods Receipt

Invoice Receipt

Automatic Account Assignment

Invoice Verification


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Reservations

A request to have a material readyfor issue at a future date for aproduction order, sales order, etc.

The purpose of a reservation is toensure that a material is availablewhen required and not assigned toanother use


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Purchasing Tolerances

A tolerance limit is set for allowedvariance before a warning/errormessage is displayed

Price variance

Compares the price in the purchase orderwith the valuation price stored in the

material master

Maximum cash discount

This tolerance limit is set to assure that cash

discounts do not exceed allowable discounts


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Goods Receipts Tolerances

Purchase order price quantity thereare two tolerance levels maintainedper item

The maximum percentage variancebefore a goods receipt postings is notallowed

A percent variance that generates awarning message but allows posting

Moving average price variance the

maximum allowable moving average


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Invoice Receipts Tolerances

Many tolerance limits that can beconfigured for invoice receipts: price,quantity, and blanket purchase

orders These tolerances include: Amount for item with or without order

reference

Form small differences automatically Percentage Over/Under Quantity

Variance

Exceed amount: quantity variance


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Automatic Account

Assignment Automatic account assignment iscreated to avoid manual postings offinancial transactions which follow

goods movements to reflect thevalues of transferred materials

Automatic account assignment is

used across all modules to keep trackof the values of materials that arebeing consumed (e.g., production), ortransferred into other valuation areas

of the company


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Automatic Account

Assignment(continued) Automatic account assignment is aset of rules and master data whichenable the financial tracking of

logistics movement


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Automatic Account

AssignmentComponents Components of Automatic AccountAssignment

Chart of Accounts

Valuation Grouping Code

Transaction Key

Modifier for Transaction Key Valuation Class


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Automatic Account

AssignmentValuation Grouping Code Valuation grouping code - groupsvaluation areas together

Example: valuation area is plant, fiveplants exist in the company, all fiveplants use the same accounts.

Multiple valuation groups are possible


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Automatic Account

AssignmentValuation Grouping Code

Plant P004Plant P001

Grouping Code

G001

Plant P003

Plant P002

Grouping Code

G002

Plant P005


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Automatic Account

AssignmentTransaction Keys Transaction Keys The transaction keys are used to

determine accounts or posting keys forline items which are createdautomatically by the system.

The transaction keys are defined in the

system.


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Automatic Account

AssignmentTransaction Keys Transaction Keys

Inventory Postings

BSX

Offsetting Entry for Inventory Postings

GBB

Materials Management Small Differences

DIF

Cost (price) differences (PPV)

PRD


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Automatic Account

AssignmentModifier Modifier modifies the transaction

key for various movement types Blank Goods receipt from purchase

order with account assignment VBR Goods issue to consumption

VAX Goods issue to sales post to

cost of goods sold AUF Goods receipt from a production

order post to production settlement

Etc. Many others


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Material Types & Valuation

Classes Account category reference: Builds the link between material types

and the valuation class(es)

0009 Reference for Finished Products

0005 Reference for Trading Goods

0002 Reference for Operating Supplies

0001 Reference for Raw Materials

Account Category Reference

FERT

HAWA

HIBE

ROH

Material Type

7920

3100

3030/3031

3000/3001/3002/3003

Valuation Class


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Material Types & Valuation

Classes

Material TypeROH (Raw Material)

Acct Cat. Ref0001 Raw Materials

Valuation Class3000(Steel)

Valuation Class3001(Paper)

Valuation Class3003(Plastics)


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Account790000

Automatic Account

AssignmentPlantP001

Valuation Class

3100 (Trading Good)

Grouping Code

G000

Goods Movement

GBB (Goods Issue)

Account Modifier

VBR (Iss. To Cons.)

PlantP002

Valuation Class

3100 (Trading Good)

Grouping Code

G000

Goods Movement

GBB (Goods Issue)

Account Modifier

VBR (Iss. To Cons.)

PlantP003

Valuation Class

3100 (Trading Good)

Grouping Code

G001

Goods Movement

GBB (Goods Issue)

Account Modifier

VBR (Iss. To Cons.)

Account790001


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Automatic AccountAssignment

PlantMaterial TypePoints To:

G/L Account

Account

Modifier

Transaction

Event Key

Valuation

Grouping Code

Valuation

Class

Represented

By:

Chart of

Accounts

Additional

Information

Goods

MovementValuation AreaMaterial

Where Valueis recorded:Why 2:Why 1:Where Valued:What:

Plant P001HAWAPoints To:

790000VBRGBBG0003100

Represented

By:

Chart of

Accounts-C000

Issued toConsumptionGood IssuePlant P001BPEN000

Where Value

is recorded:Why 2:Why 1:Where Valued:What:


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Goods Receipt

Materials can be received as stockitems or non-stock items

Receipt is possible from external orinternal sources

Individually / collectively

Tolerance limits can be set for goodsreceipt

Special movement type for initial

inventory load


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Goods Receipt (continued)

Stock items can be received intorestricted or unrestricted stock

Non-stock items are received intoorders, projects, cost centers

Materials that are usually received

into inventory can also be receivedinto orders, projects, cost centers


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Invoice Verification

Set parameters for invoiceverification

Quantity, price, receiving date, P/Oquantity

Updates material master if movingaverage price

Automatic account assignment for pricedifferences - if allowed

Verify actual versus target

3 h


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3-Way Match

Purchase order

- Target quantity -- Target price -

Goods receipt- Actual quantity -

Invoice receipt- Actual price -


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Accounts Payable

SettlementPurchaseOrder

GoodsReceipt

InvoiceReceipt

Debit Credit

Payment

Program

Verification

U i 11 G 1


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Unit 11, Group 1 Exercises

89. Set Default Values for InventoryManagement Reservations

90. Maintain Purchasing Tolerance Limits

91. Maintain Goods Receipt Tolerances

92. Maintain Invoice Receipt Tolerances

93. Set (Review) Valuation Control

94. Assign Valuation Area Grouping

95. Define (Review) Valuation Classes

U it 11 G 2


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Unit 11, Group 2 Exercises

96. Configure Automatic Postings for GoodsMovement

97. Configure Automatic Postings for Taxes

98. Set Parameters for Invoice Verification

99. Create Default Values for InvoiceVerification

Documents

Unit 11 Materials Management Rules