Post on 26-Nov-2014
Optimal Confidential and Proprietary Information
Presentation on SAP Material ManagementBy
Chandra Bhushan Nirala
Materials Management Overview Organizational Elements Organizational structure Master Data Purchasing Inventory Management Physical Inventory Invoice Verification
Topics
Materials Management Overview
SAP Material Management Module supports the procurement and inventory functions occurring in day-to-day business functions.
Materials Management Overview Procurement
– Purchase Requisition– Request for Quotation/Quotation
• Material/Service• Price Comparison
– Purchase Order Inventory Management
– Goods Receipt/Issue– Transfer Posting– Physical Inventory
Organizational Elements
Organizational Elements -Materials Management– Purchasing Organization– Plant– Storage Location– Purchasing Group
Purchasing Organization Responsible for procurement for one or more plants Responsible for negotiating pricing and delivery terms
with vendors Purchasing Organization is assigned to a company where
inventory is legally tracked or costs are legally incurred.
“PLANT SPECIFIC” PURCHASING ORGANISATION
“CROSS – PLANT” PURCHASING ORGANISATION
‘CROSS – COMPANY CODE’ PURCHASING ORGANISATION
Plant A Plant is an organizational unit within a company. A plant produces
goods, renders services etc.
A Plant can be one of the following types of locations:– Manufacturing facility– Corporate headquarters
Storage Locations Storage locations are organizational units that allow
the differentiation of material stocks within a plant. They contain data specific to that storage location.
Storage Location 0010Storage Location 0020 Storage Location 0030
Storage Location 0040
Organizational Structures
Master Data
MATERIAL MASTER
VENDOR MASTER
SERVICE MASTER
PURCHASING INFORECORD
SOURCE LIST
MATERIAL MASTER
MATERIAL MASTER
16
Finished Product –
InventoryQuality
Sales InformationProduction Information
Desc:---------------------
Raw Material - Blade-sm
InventoryPurchasing
Desc:---------------------
InventoryPurchasing
Desc:---------------------
Spare Part
RetailingRetailing
InventoryQuality
Sales InformationProduction Information
Desc:---------------------
Semi-Finished
ChemicalIndustryChemicalIndustry
Material Type / Industry Sector
Vendor Master
VENDOR MASTER GENERAL DATA :
(VALID FOR THE WHOLE CLIENT- NAME, ADDRESS, BANK DETAILS ETC.)
ACCOUNTING DATA :
(MAITAINED AT PLANT LEVEL-RECOCILIATION A/C NO., BANK DETAILS, PAYMENT METHOD ETC.)
PURCHASING DATA :
(MAINTAINED AT PUR ORG. LEVEL-P.O.CURRENCY,INCOTERMS & VARIOUS CONTROL DATA)
Tasks of Procurement
Procurement Cycle
Purchase Requisition
Purchasing – RFQ/Quotation
Inventory Management Overview
Stock Movements
Effects of Goods Receipt Posting
Effects of Goods Issue Posting
Stock Transfer Types
Stock Transfer – MM & SD Route
Material Valuation
Vendor Evaluation
Vendor Consignment
Subcontracting
Physical Inventory - Process
Invoice Verification
Thank you !!