SAP Materials Management Overview

SAP Materials Management (MM)By

KMRSOFT

WWW.KMRSOFT.COMEmail : [email protected]

http://www.kmrsoft.com/

mailto:[email protected]

Inventorymanagement

Invoiceverification

Invoicereceipt

Overview of Materials Management

?

A

B

Warehousemanagement

Goods receipt

Sales anddistributionInternal and external accounting

Goods issue

Transferposting

Material requirementsplanning

External procurementPurchasing

Internal procurementProduction

Master dataMaterialBatchVendorG/L accountsCustomerInfo Records

.

.

.

SAP Trainings by KMR Software Services Pvt Ltd. Email : [email protected]


Organizational structures in R/3

Views Organizational units

Cost accounting

External logistics

Accounting

Internal logistics(MRP/production)

Inventory management

Company

Controlling areas

Sales organizations Purchasing organizations

Company codes

Plants

Valuation areas

Storage locations/batches/special stocks



Purchasing

Plants

Client

Company codes

Purchasingorganizations

0001

0001

0001

0001

0002

00040002 0003

00030002




Inventory mgmt set-up without WM

Storage locations

Client

Plants 0001 0002 0003

0001 0001 0002



Organizational Entities in Purchasing

Plant 1

Purchasing organization 1Purchasing organization 2

Purchasing group 1

Purchasing group 2

Purchasingorganization

Plant 2 Plant 2 Plant 10



Views in a material master record

Material master record

Requirementsplanning

St

t

Purchasing

Sales and distribution

Job preparation

Storage

Qualitymanagement

Stocks in plant-warehouse

A

B

Warehousemanagement Classification

Forecast

Accounting

Engineering



Vendor

Goods receipt

Bank

order account

?=

Invoice verification

purchase order

InvoiceMaterial

Purchasing

Payment

DEUTSCHEMARK

DEUTSCHEMARK

DEUTSCHEMARK

Vendor



Purchasing info records

Vendor A

Material

Piece % Conditions

USD

Piece % Conditions

USDInfo record

Vendor B

Stock material M1

Consumable material M2

Service S1

Info record

Info record

Info record

Info record



Data in the purchasing info record

General data

Vendor dataOrigin dataOrder unit

Texts

Control data

Delivery timeMinimum quantityTolerances

Prices andconditions

Gross priceDiscountsFreight

Price history Purchasing statisticsChanges



Pricing

Records for condition typeNo valid record existsValid record exists

Pricing procedure RM000

Item 10 120 pcs

PB00 Price $99

$100 for 1 pcs $99 for 100 pcs $98 for 200 pcs

1.Price PB002.DiscountRA00

Access sequence: PB01 1. Outline agreement2. Vendor/material/

organizational level3. Vendor/material group/

organizational level

Condition type: PB00Access sequence: PB01

11

22

33

44

Purchase orderVendor 123Purchasing organization 2000

55

Scale



Source list

1.1.95 - 30.6.95

Vendor 1 allowedVendor 2 allowedVendor 3 allowed

Source list

Material M1Plant 0001

1.7.95 - 31.12.95

Vendor 1 fixed



Procurement Environment

Order

Order processing

Order follow-up

Goods receipt andinventory management

MMMaterials

management6

5

4

Sourcedetermination

2

Vendor selection3

InvoiceOrder

?Invoice verification7 Requirement determination1

MRP



Purchasing Documents

Purchase requisition

Request for quotation

Purchase order

Contract

Schedulingagreement

Quotation

31. 1.

Contract

Purchase order

??Quotation

B

Quotation

A

RFQ

??

Purchasingrequisition



Effects of a goods receipt posting

Material document

Accounting document

G/L accounts:Stock accountConsumption account...

Goods receipt slip

R/Mail to the order placer

Quality management:Inspection lot

Stock quantityConsumption statistics...

Point of consumptionCost centerOrder...

Purchasing data:Purchasing itemPurchase order history...

Warehouse mgmt:Transfer requirement

Goods receipt



Stock Types: Goods Movement

Receipts

Stock in quality inspection

Unrestricted- use stock

Blocked stock

Withdrawals

Scrapping/sampling



Effects of a Goods Issue

Goods issue

Material document

Accounting document

G/L accounts:Stock accountConsumption account...

Reservation

Stock quantityConsumption statistics...

Point of consumption :Cost centerOrder...

Warehouse management:Transfer order



Course ContentIntroduction 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 ContentSAP-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 OrganizationScheduling 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 DocumentSTOCK 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






Education

SAP Materials Management Overview