Material Management (MM) Master Data & Records EGN 5620 Enterprise Systems Configuration...

Material Management (MM) Material Management (MM) Master Data & RecordsMaster Data & Records

EGN 5620 Enterprise Systems ConfigurationEGN 5620 Enterprise Systems Configuration (Professional MSEM) (Professional MSEM)

Fall, 2013 Fall, 2013

Material dataMaterial dataDefinition

◦Physical objects to buy, transform into, sell, maintain other resources, or use in support for business activities.

Generic classification(material types) :◦Trading goods◦Raw materials◦Semi-finished products (WIPs)◦Finished products◦Consumables (e.g., stationery, production tools)◦Spare parts (for maintenance)

Material dataMaterial dataTypical material attributes, by business

functions:◦Application/industry (sector)◦Engineering (i.e., material properties)◦Purchase◦Sales◦Accounting◦Production◦Inventory (MRP)◦Warehousing

Material Numbering SchemeMaterial Numbering SchemeDecisions include:

◦Material number length◦Numbering schemes

Option 1: use sequential number Option 2: use a template to define the meaning of

material numbers, according to:◦Material type◦Material property type◦Material shape and/or◦Dimensions

Principles:◦Each inventory item must has a unique number. ◦Automatic assignment of material numbers is the

best (simplest) choice for simplicity of maintenance.

MM Master Data & RecordsMM Master Data & Records

SAP MM Master Data and RecordsSAP MM Master Data and Records

EGN 5620 Enterprise Systems Configuration EGN 5620 Enterprise Systems Configuration (Professional MSEM) (Professional MSEM)

Fall, 2013 Fall, 2013

January 2008January 2008

© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 66

System Configuration ProcessSystem Configuration Process

Master D

ata

MM



MM Master Data (review) MM Master Data (review)

Material master data are part of SAP master data, which are relatively fixed

The organizational structure must be completed before creating the master data



Master Data (review)Master Data (review)Master data include business rules and

supportive information which are applied while generating master data records

Master data are maintained by individual data owners in various organizational units inside the SAP client



Master Data records (review)Master Data records (review)

Each master data record is uniqueMaster data records are usually created or

converted (from a legacy system) at the beginning of SAP deployment

Material master records are maintained by various organization units such as sales, purchasing, production, & accounting, etc.



Material Master Data ModelingMaterial Master Data Modeling

Material attributes are used to sufficiently differentiate their:◦Industry/Application Sector◦(Material) Type◦Maintenance Features◦Organizational Levels◦Various Business Views



Material Master – Industry SectorMaterial Master – Industry SectorIndustry sector is used to group recordsIt determines industry-specific data that

will appear on the master recordIndustry sector examples:

◦Chemical industry (C ), ◦Mechanical engineering (M), ◦Pharmaceuticals (P), ◦Plant Eng./Construction (A), ◦Retail, and so on.


© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All The Rushmore Group, LLC 2007. All rights reserved.rights reserved. 1212

Material Master – Material Type Material Master – Material Type It is used to categorize material typesIt defines material attributes of:

◦Valuation◦Procurement, and◦Price control, etc.

It controls transaction (types) allowed for the material

It controls the screen (view) sequence, number assignment, field selection, and account determination



Material Master – Material TypeMaterial Master – Material Type

Material type information is used to determines:• What views are maintained• Whether internal or external procurement is

allowed• Whether changes in material quantity need to

be updated• Which general ledger accounts need to be

updated



Material Master – Material TypesMaterial Master – Material Types

SAP standard material types (used in all industries): ◦ROH (Raw Materials)

Purchased externally only No sales view No Work scheduling view

◦HAWA (Trading Goods) Always purchased externally Sold without any change to the material No manufacturing views exist

◦FERT (Finished Products) Are produced internally Normally no purchasing views exist



Material Master Material Master – More Material Types– More Material Types HIBE (Operating Supplies) VERP (Customer returnable packaging) LEER (Empty containers) KMAT (Configurable material) ERSA (Spare parts) DIEN (Services) NLAG (Non-stock, non-valuated material) UNBW (Non-valuated, stocked material) FHMI (Production resources/tools) WETT (Competitive products) PROD (Product group) IBAU (Maintenance assembly, plant maintenance)



Material Master – Maintenance featuresMaterial Master – Maintenance features

Default◦ It speeds data entry by using the most frequently used

field values (plant, purchasing organization, etc.)Reference Material

◦ It speeds data entry by copying data from existing material master

Profile ◦ It speeds data entry by copying standard data created in a

profile into a selected view Materials Requirements Planning (MRP)

Collective entry of storage location data ◦ It speeds the creation of multiple storage locations



Material Master – Organization LevelsMaterial Master – Organization Levels

Material master data can be related to all organizational levels

General information of material master records (such as description, number, base unit of measure) has to be related to the highest level of organization (i.e., the client)

Other material master records are tailored at the plant or lower levels



Material Master Material Master – at Various Organization Levels– at Various Organization LevelsData are visible

◦At client level: Description Units of measure Material number Engineering data

◦At plant level: Planning data Manufacturing data Purchasing data

◦At storage location level: Stock quantities



Material Master Material Master – Primary Views– Primary Views Basic data 1 Sales: sales organization data 1 Sales: sales organization data 2 Sales: general/plant data Sales: texts Purchasing Forecasting MRP: 1 MRP: 2 MRP: 3 Work scheduling General Plant Data/Storage Accounting 1 Costing 1

Purchasing

View MRP 1View

Barrel Pen



Material Master Material Master – Basic Data 1 View– Basic Data 1 View General data

◦ Basic Unit of Measure Unit of measure in which stocks of the material are managed

◦ Material Group Used to group together several materials or services with the

same attributes◦ Division

Used to determine the sales area and the business area for a material, product, or service

Dimensions/EANs◦ Gross weight

Used to check storage capacity in warehouse◦ Net weight

Weight excluding packaging and extras – this is needed for sales and distribution

◦ Weight Unit Unit of Measure for weight

◦ Volume The space that the material occupies per unit of volume



Material Master Material Master – sales view 1: sales organization– sales view 1: sales organization

General Data◦Base Unit of Measure

The Base Unit of Measure is the unit of measure in which stocks are managed within your company.

◦Division You may enter the Division which your product is in for sales

(defaults if entered in the Basic data screen).◦Material Group

A key that’s used to group several materials or services for analysis/reporting as well as search by match code.

◦Sales Unit The unit of measure in which the material is sold, if left blank

then uses the base unit of measure.



Material Master Material Master – sales view 1: sales organization– sales view 1: sales organization

◦Delivering Plant Plant from which the material is available for sale.

◦Cash discount Indicator used for materials, which allow for a cash

discount.◦Conditions

Pricing procedure for the materialTax Data

◦Tax classification material The indicator with which the system determines

output tax for the material when processing sales and distribution-specific documents



Material Master Material Master – sales view 1: sales organization– sales view 1: sales organizationQuantity Stipulations

◦Minimum Order Quantity Minimum quantity a customer may order.

◦Minimum Delivery Quantity• Minimum quantity that may be delivered to a

customer

◦Delivery Unit The delivery unit consists of a number and a unit

of measure. In the case of a delivery unit of 30 pieces, 30, 60, 90, and so on pieces can be delivered, but not, however, 100 pieces.



Material Master Material Master – sales view 2: sales organization– sales view 2: sales organization Grouping Terms

◦ Material Statistics Group Determine which data the system updates in the logistics

information system◦ Material Pricing Group

A way of grouping materials to which you want to apply the same conditions

◦ Volume Rebate Group Group definition used for rebate settlement.

◦ General Item Category Group Materials grouping that helps the system to determine

item categories during sales document processing.◦ Item Category Group

A grouping of materials that the system uses to determine item categories during the processing of sales documents.

◦ Commission Group Commission group to which the material is assigned.



Material Master Material Master – sales view: general/plant view– sales view: general/plant view

General Data◦Base unit

The unit of measure in which items are managed in the company

◦Gross weight Used to check storage capacity in warehouse

◦Net weight Weight excluding packaging and extras – this is

needed for sales and distribution◦Availability check

Option to do an availability check for orders and MRP



Material Master Material Master – sales view: general/plant view– sales view: general/plant view Shipping Data (times in days)

◦ Transportation Group Defines materials that have the same transportation

requirements. For example, bulk stock materials◦ Loading Group

Defines materials that have the same loading requirements, such as forklift truck, or crane.

Packaging Material Data◦ Material group Pack Materials

Materials that require similar packaging materials General Plant Parameters

◦ Negative stock It indicates if negative stocks of the material are allowed

at the plant ◦ Profit Center

It identifies the profit center in the current controlling area



Material Master Material Master - sales view: sales texts- sales view: sales texts

Sales Texts ◦Sales texts are information to be exchanged

throughout the logistics chain◦In sales and distribution, this exchange of

information is supported by texts in master records and documents

◦The user may define as many text types as required (e.g., sales texts, shipping texts, internal notes, & supplement texts, etc.) for master records and documents



Material Master Material Master – Purchasing View– Purchasing View

General Data• Order Unit

• The unit of measure in which a company purchases the product

• Purchasing Group• Key for a buyer or a group of buyers, who is/are

responsible for certain purchasing activities.Purchasing Values

• Purchasing Value Key• It defines the reminder days and tolerance limits

for purchasing



Material Master – Forecasting viewMaterial Master – Forecasting view

Number of Periods Required◦Historical Periods

The number of historical values the system uses for the forecast

◦Forecast Periods Number of period splits for which a forecast

should be createdForecast Values

◦The numeric quantity for future periodsConsumption Values

◦The sum of planned and unplanned consumption



Material Master – MRP view 1Material Master – MRP view 1 General Data

◦ Purchasing Group The buyer(s) who are responsible for certain purchasing

activities MRP Procedures

◦ MRP Type It determines whether and how the material is planned

◦ Reorder Point If stock falls below this point, the system is flagged to create

a planned order◦ MRP Controller

The person(s) responsible for the material planning Lot Size Data

◦ Lot Size The lot sizing procedure to calculate the quantity to be

produced or procured◦ Minimum Lot Size

The smallest order quantity◦ Fixed Lot Size

The quantity to be ordered



Material Master – MRP view 2Material Master – MRP view 2

Scheduling◦Planned Delivery Time

Number of calendar days needed to obtain the material

◦Scheduling Margin Key Used to determine the floats required for

schedulingNet Requirement Calculation

◦Safety Stock It specifies the quantity of safety stock whose

purpose is to satisfy unexpectedly high demand in the coverage period



Material Master – MRP view 3Material Master – MRP view 3

Availability Check◦It specifies whether and how the system checks

availability and generates requirements for materials planning



Material Master – work scheduling viewMaterial Master – work scheduling view

Production scheduler◦It specifies the production scheduler

Production Scheduler Profile◦It specifies production scheduler profile



Material Master – plant data/storage view 1Material Master – plant data/storage view 1General Data

◦Container Requirements It defines the regulations that govern which type of

container the material must be stored and shipped in

◦Storage Conditions It defines the conditions on how a material must be

stored or warehoused Shelf Life Data

◦Minimum remaining shelf life Minimum time the material must keep upon goods

receipt for the goods receipt to be accepted by the system

◦Total Shelf Life Period of time the material will keep in total, from

the date of production or receipt to the shelf life expiration date



Material Master – Accounting view 1Material Master – Accounting view 1Current Valuation

◦Valuation Class• It allows the stock values of materials of the same material type to be posted to different G/L accounts.

• It allows the stock values of materials of different material types to be posted to the same G/L account.

• It determines together with other factors the G/L accounts updated for a valuation-relevant transaction (Material Movements)

◦Price Unit• Number of units to which the price refers



Material Master – Accounting view 1Material Master – Accounting view 1

Current Valuation◦Price Control Indicator

• The price control used to valuate the stock of a material (e.g., Standard or Moving Average Price)

◦Standard Price• The valuation of material stocks at standard prices means that all goods movements are valuated at the same price over an extended period

◦Moving Average Price• The system calculates the moving average price automatically by dividing the material value in the stock account by the total of all storage location stocks in the plant concerned



Material Master – costing viewMaterial Master – costing viewGeneral Data

◦Overhead Group It assigns same overhead rate to group

Standard Cost Estimate◦Future

Planned cost of material in future◦Current

Current standard cost of material◦Previous

Historical standard cost of materialPlanned Prices

◦Future price of materialValuation Data

◦Valuation Class Class type for G/L posting

PEN, Inc. PEN, Inc. MM MM

Master Data and RecordsMaster Data and Records

EGN 5620 Enterprise Systems Configuration EGN 5620 Enterprise Systems Configuration (Professional MSEM) (Professional MSEM)

Fall, 2013 Fall, 2013

Trading GoodsTrading Goods

Material Type Materials Views requiredAccount Category

Valuation class

HAWA BPENxxx Basic data 1 0005 3100

(Trading Goods) CPENxxx Purchasing

PPENxxx MRP 1, 2, 3

BOXxxxGeneral Plant data/Storage 1

Accounting 1

Sales: Sales Org. Dta 1

Sales: Sales Org. Data 2

Sales: General/Plant data

Operating SuppliersOperating Suppliers

Material Type Materials Views requiredAccount Category

Valuation class

HIBE TAPExxx Basic data 1 0002 3030/3031

(Operating supplies) TISSUExxx Purchasing

PAPERxxx MRP 1, 2, 3

FORMSxxx General Plant data/Storage 1

Accounting 1

Raw MaterialsRaw Materials

Material Type Materials Views RequiredAccount Category

Valuation class

ROH Barrelxxx Basic data 1 00013000/3001/3002/3003

(Raw Material) Clipxxx PurchasingCapxxx MRP 1, 2, 3Bandxxx General Plant Data/Storage 1Cartridgexxx Accounting 1Crownxxx Costing 1StandxxxGiftboxxxx

Finished ProductsFinished Products

Material Type Materials Views createdAccount Category

Valuation class

FERT EPENxxx Basic data 1 0009 7920

(Finished Products) ESETxxx Sales: Sales Org. Data 1

Sales: Sales Org. Data 2

Sales: General/Plant data

MRP 1, 2, 3

Work Scheduling

General Plant Data/Storage

Accounting 1

Costing 1

Exercises: Exercises: (Due Date 8/17/2013)(Due Date 8/17/2013)60. Create Vendor Master Accounting 61. Create Vendor Master Purchasing Record62. Create Vendor Master Record Centrally63. Create Vendor Master Record Centrally64. Create Vendor Master Record Centrally69. Create material Master for Trading Goods82. Create Vendor Master Record for Landlord83. Create Rent Expense Account84. Create for Invoice Receipt for Rent Expense85. Display and Review G/L Account Balances and

Individual Line Items

Exercises: Exercises: (Due Date 8/17/2013)(Due Date 8/17/2013)86. Display and Review Vendor Account Balances

and Individual Line Items87. Post Payment to Landlord88. Display and Review G/L and Vendor Account

Balances and Individual Line Items124. Create Shipping Point

201.Create Controlling Area202. Assign Company Code to Controlling Area203. Create Cost Center Standard Hierarchy211A. Maintain Cost Center Standard Hierarchy

Material Management (MM) Master Data & Records EGN 5620 Enterprise Systems Configuration...

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