MM Cookbook .doc

7/29/2019 MM Cookbook .doc

1/68

http://www.sapfunctional.com/MM/Cookbook/Index.htm

MM Cookbook

Materials Management (MM) Cookbook

Topics covered:

Process Flow Enterprise Structure Vendor Creation Request for Quotation Maintain Quotation Info Record Source list Purchase Request Purchase Order Goods Receipt Contract Scheduling Agreement
http://www.sapfunctional.com/MM/Cookbook/ProcessFlow.htmhttp://www.sapfunctional.com/MM/Cookbook/ProcessFlow.htmhttp://www.sapfunctional.com/MM/Cookbook/EnterpriseStructure/Page1.htmhttp://www.sapfunctional.com/MM/Cookbook/EnterpriseStructure/Page1.htmhttp://www.sapfunctional.com/MM/Cookbook/Vendor/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/Vendor/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/RFQ/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/RFQ/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/Quotation/Maintain.htmhttp://www.sapfunctional.com/MM/Cookbook/Quotation/Maintain.htmhttp://www.sapfunctional.com/MM/Cookbook/Inforecord/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/Inforecord/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/Sourcelist/Demo.htmhttp://www.sapfunctional.com/MM/Cookbook/Sourcelist/Demo.htmhttp://www.sapfunctional.com/MM/Cookbook/PurchaseRequest/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/PO/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/PO/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/GoodsReceipt/Index.htmhttp://www.sapfunctional.com/MM/Cookbook/GoodsReceipt/Index.htmhttp://www.sapfunctional.com/MM/Cookbook/Contract/Demo.htmhttp://www.sapfunctional.com/MM/Cookbook/Contract/Demo.htmhttp://www.sapfunctional.com/MM/Cookbook/SchedulingAgreement/Demo.htmhttp://www.sapfunctional.com/MM/Cookbook/SchedulingAgreement/Demo.htmhttp://www.sapfunctional.com/MM/Cookbook/SchedulingAgreement/Demo.htmhttp://www.sapfunctional.com/MM/Cookbook/Contract/Demo.htmhttp://www.sapfunctional.com/MM/Cookbook/GoodsReceipt/Index.htmhttp://www.sapfunctional.com/MM/Cookbook/PO/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/PurchaseRequest/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/Sourcelist/Demo.htmhttp://www.sapfunctional.com/MM/Cookbook/Inforecord/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/Quotation/Maintain.htmhttp://www.sapfunctional.com/MM/Cookbook/RFQ/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/Vendor/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/EnterpriseStructure/Page1.htmhttp://www.sapfunctional.com/MM/Cookbook/ProcessFlow.htm


2/68

MM Cookbook - Process Flow

By Subhajeet Behera

Determination of Requirements

The user department responsible is manually passing a requirement for materials to thepurchasing department via Purchase Requisition. Purchase requests are generated whenbusiness runs the MRP and Request are also generated based in Consumption based planning(CBP) for Production and Engg.Stores.

Determination of Source of Supply

The purchasing component helps the buyer determine the sources of supply. User use thedetermination of the source of supply to create Requests for quotation (RFQs) and then to enter quotations. User is accessing the existing Purchase Orders and Conditions in the System.

Vendor Selection and Comparison of Quotations

The System is capable of simulating pricing scenarios and simplifies the selection of vendors bymaking price comparisons between the various quotations.

Purchase Order Processing

The purchasing system adopts information from purchase requisition and the quotation to helpto create Purchase Orders. They are also creating manual purchase order directly for stock,non-stock items, services etc.

Purchase Order Monitoring

The buyer monitor the processing status of the purchase order online at any time and determinewhether goods or an invoice have been received for the relevant purchase order item.

Goods Receipt and Inventory Management

The Goods receiving requester confirms the receipt of the materials by simply entering thePurchase Order Number. The system compares the goods receipt quantity with the purchase


3/68

order quantity. By specifying permissible tolerances, buyers can limit over deliveries and under deliveries of ordered materials.

PURCHASING

Purchasing Functionality is integrated with Inventory Management and InvoiceVerification within MM.


4/68

MM Cookbook - Enterprise Structure

By Subhajeet Behera

Define valuation level

BACKGROUND

This configuration setting enables to define at which level the stock are to be valuated in SAP.

Stocks can be valuated at following two levels in SAP.

Plant levelCompany code level

It is recommended to keep at plant level. This is a client level setting.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Definition Logistics -General Define valuation level

1. Click

2. Select the radio button

3. Click Save

Define Plant


5/68

BACKGROUND

This configuration setting enables to define the plant. Each manufacturing facility or branch of acompany is defined as a plant in SAP.

Plant is assigned to the company code.

Storage locations are created under each plant.

If the valuation level is the plant, the stocks are valuated at plant level.

Note: - It is common practice to copy plan from the existing defined plant. It will be defined bythe FI.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Definition Logistics -General Define copy, delete, check plant

1. Click

2. Click

3. Click

4. Click


6/68

5. Enter from plant as 0001 to copy from SAP defined plant

6. Enter To Plant E.g. IND6

7. Click

8. Click to return to main menu.

Note: - Definition of plant and assignment of plant to the company codes along with relevant GLaccounts is done by the FI team. However the creation of plant is demonstrated.

Maintain plant details and Factory calendar in Plant

BACKGROUND

When copying the plant, the entire details will be copied from the source plant. Address of the plant and other details attached to the plant can be changed.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Definition Logistics -General Define copy, delete, check plant

1. Double click

2. Select plant IND6 by clicking the grey box in the left side

3. Click

4. Click

5. Maintain the entire address, contact details of the plant.

6. Factory calendar must be attached to the plant

Below screen shows the details of plant settings.


7/68

Define Location

BACKGROUND

This configuration setting enables to define the location. Location indicates where the materialsare stored inside the plant.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Definition Logistics -General Define Location

1. Click

2. Click

3. Update required and optional fields:

Field Name Description Value Plant Name of the plant e.g. IND6


8/68

Location Location identification E.g. PROD Name Description of the location Production location

4. Click

Note: - Maintain the address of the location in the subsequent screen.

5. Enter title as Company

6. Enter country

7. Click

Click .


9/68

Maintain Storage Location

BACKGROUND

This configuration setting enables to define the physical storage location. This will indicatewhere the stocks are stored physically inside the plant.

Each item must have storage location. One material can be stored in many storage locations.

Storage locations can be assigned to the warehouse through warehouse management.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Definition MaterialsManagement Maintain storage location

Click

Enter the plant where the storage location is to be created. E.g. IND6

Click

Click

Enter Storage location

Enter description of the storage location

Click


10/68

Select the storage location

Double Click

Enter the sequential number 1

Click

Select the sequence number

Click


11/68

Maintain the address.

Click

Click

Repeat the above to maintain the address for all storage locations.

Maintain Purchase organization

BACKGROUND

This configuration setting enables to define the purchase organization.

Purchase organization is the part of the enterprise structure from MM point of view. It representsthe responsibilities to


12/68

Procure materials and servicesNegotiation with vendor

Purchase organization is assigned to the company codes and plants. Following are thepossibilities of assignments.

One purchase organization to many company codesOne purchase organization to one company codeOne purchase organization to one plant

Note: - It must be assigned to plant.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Definition MaterialsManagement Maintain purchase organization

1. Click

2. click

3. Update the following fields

Field Name Description Purch.organization Key identifying the purchase organization. E.g.

IND6 Purch.org.descr. Description of the purchase organization. E.g.

For plant IND6

4. Click .

Assign Plant to company

BACKGROUND

This configuration setting enables to assign plant to the company code.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Assignment Logistics General Assign plant to company code

1. Click


13/68

2. Select the desired company code by clicking the cursor on it.

3. Click

4. Select the plant from the display

5. Click

6. Click .

Assign purchase organization to the company code

BACKGROUND

This configuration setting enables to assign the purchase organization to a company code.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Assignment MaterialsManagement Assign purchase organization to company code

1. Click

2. Select the desired company code by clicking the cursor on it.

3. Click

4. Select the purchase organization

5. Click

6. Click

Assign purchase organization to plant

BACKGROUND

This configuration setting enables to assign the purchase organization to a plant.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Assignment MaterialsManagement Assign purchase organization to plant

1. Click

2. Select the desired plant by clicking the cursor on it.

3. Click


14/68

4. Select the purchase organization

5. Click

6. Click

All right guys, not much about MM organization structure. Now we shall look into materialmaster related to configurations.


15/68

MM Cookbook - Vendor Creation

By Subhajeet Behera

Definition:-

Every vendor is identified with the code in SAP. It is called Vendor master record.

Vendor master record contains details of

Address Payment terms Delivery terms Lead time to supply GL Account for reconciliation

Each vendor record will be created at company code and purchase organization level.

Normally vendor master contains the details of both accounts related and also purelypurchasing related, hence it is created in consultation with FI team.

Menu Path:-

Logistics Materials Management Purchasing Master Data Vendor Central XK01 Create

Maintain Vendor code number, company code, Purchase organization and account group


16/68

Click

Maintain

Maintain

Note: - Click to enter more lines in the address

Maintain

Maintain

Click


17/68

Nothing specific to be maintained in this screen

Click


18/68

Maintain the payment related details.

Click


19/68

Maintain the reconciliation account. E.g. 160000

Note: - these entries maintained in consultation with accounts.

Click


20/68

Maintain more FI related information here.

Click


21/68

Dunning data are maintained here.

Click


22/68

Maintain order currency, terms of payment, Incoterms

Maintain schema group vendor to determine the right pricing procedure.

Maintain the control data

Click

Click


23/68


24/68

MM Cookbook - Create RFQ

By Subhajeet Behera

Definition:-

Purchase request is the requirement document created manually or through the MRP run.Purchase request is further processed to create Purchase order document.

It is possible to create Request for Quotation purpose.

Let us create RFQ for a material.

Menu Path:-

Logistics Materials Management Purchasing RFQ/Quotation Request for Quotation ME41 Create

Double Click ME41

Maintain the details as shown below


25/68

Click


26/68

Enter collective number. Collective number is like a tracking number in PR creation used togroup together and process the RFQ.

E.g. RM10 to indicate Raw Material requirement for 10 th Month

Click

Click F7 key to maintain Vendor address

Maintain vendor as shown below


27/68

Click

Note: - Details will be copied from info record.

Click


28/68

Click to enter material number and quantity


29/68

Click

Click

Click

Message appear at the bottom


30/68

MM Cookbook - Maintain Quotation

By Subhajeet Behera

Definition:-

When the quote is received from the vendor, with reference to the request, quote can bemaintained.

Quotation is the reply from vendor for our enquiry regarding the price and quantity and supplyschedule confirmation.

Let us maintain the quotation for the RFQ 6000000007.

Prerequisite:-

Manual confirmation from vendor must be available

RFQ must be available

Menu Path:-

Logistics Materials Management Purchasing RFQ/Quotation Request for Quotation ME47 Maintain

Double Click ME47


31/68

Maintain the details as shown below

Enter RFQ number

Click to maintain rate at item level details

Click to maintain condition record

Maintain discount and freight as shown below.


32/68

Click

Click

Enter the quotation validity period

Enter payment terms

Enter vendor quotation reference.

Maintain the details as shown below.


33/68

Click to confirm the condition at header level


34/68

Click

Click

Click


35/68

Click

Note: - To compare the price from various vendor, use transaction code ME49 pricecomparison


36/68

MM Cookbook - Create Info record

By Subhajeet Behera

Definition:-

Purchase info record is the kind of template with all the information required to create purchaseorder. For each vendor, material and plant combination purchase info record can be created.

Info records are created for following types of transactions

Standard POSub contractingConsignmentPipeline

When creating PO, most of the information will be copied from info record into PO.

Info record controls

Validity period for each vendor Indicates vendor as preferred vendor Blocking vendor from raising PO Source relevancy to MRP Supplying plant incase of STO

Menu Path:-

Logistics Materials Management Purchasing Master Data Info Record ME11Create

Double Click ME11


37/68

Maintain Vendor code number

Maintain Material code number

Maintain purchasing organization

Maintain Plant

Select the radio button Standard

Click


38/68

Maintain the following fields according to the business needs

Field name Field description Number of days after which a reminder is tobe sent to the vendor for supply. Material number used by vendor. Material group to which the vendor belongs to. Used for volume and point based rebates.

Click


39/68

Maintain planned delivery time

Maintain purchasing group

Maintain standard quantity

Maintain net price

Click


40/68

Click


41/68

Note: - Text maintained in purchase order text will be copied into the PO.

Click

Condition type specific to this vendor and material can be maintained here. It will be copied intothe purchase order

Click


MM Cookbook - Maintain Source list

By Subhajeet Behera

Definition:-

Source list is used to find the vendor automatically during auto vendor assignment process. It isa plant specific master data.

Through configuration, it can be made as mandatory or an optional.

Source list controls


42/68

Validity period for each vendor Indicates vendor as preferred vendor Blocking vendor from raising PO Source relevancy to MRP Supplying plant incase of STO

Menu Path:-

Logistics Materials Management Purchasing Master Data Source List ME01Maintain

Double Click ME01

Maintain Material code number

Maintain Plant

Click

Maintain valid from date

Maintain Valid to date


43/68

Maintain vendor code

Maintain Purchase organization

Note: - field is used incase of STO. Supplying plant can be mentioned here.

Tick the check box to indicate the vendor as preferred vendor.

Note: - Only one vendor can be indicated as preferred vendor in the same validity period.

Check box is used to block the vendor

If this source is to be used by MRP, fill the column.

Following are the allowed entries

Click

Click


44/68

MM Cookbook - Create Purchase Request

By Subhajeet Behera

Definition:-

Purchase request is the requirement document created manually or through the MRP run.Purchase request is further processed to create Purchase order document.

It is possible to create Request for Quotation purpose.

Let us create Purchase Request for a material.

Menu Path:-

Logistics Materials Management Purchasing Purchase Requisition ME51N Create

Double Click ME51N


45/68

Click to close enjoySAP portion of the screen

Click to open the window

Maintain the details at item level as shown below

Click

To view more details, click the item details tab screen one by one.


46/68

Click

Change or maintain the details as required by the business.

Click

Click

Click


47/68

Click

click

Note: - Maintain the required text here

Click

Click



48/68

MM Cookbook - Create Purchase Order

By Subhajeet Behera

Definition:-

Purchase order is an agreement between the vendor and a company to supply the goods at anagreed rate and at an agreed duration of interval.

Purchase order is a legal document between a vendor and a company. It covers the paymentterms and terms of delivery also.

Menu Path:-

Logistics Materials Management Purchasing Purchase Order Create ME21N Vendor/Supplying Plant known

Double Click ME21N


49/68

Enter vendor number. E.g. IND6-1

Click

Enter Purchase organization, purchasing group and company code details as shown below

Click

Click to view the item over view

Enter Material, PO quantity and Plant where it is to be received as shown below.


50/68

Click the tab screens one by one in the item detail screen. Maintain the appropriate entries.

Click

Click

Click

Click


51/68

Click

MM Cookbook - Create Purchase Order

.. .Previous

Note: - If material master is set with the QM inspection type 01, then stock type will be QMstock. QA control key from the material master will be copied here into the PO.

Click

Ensure check box is ticked to have GR based Invoice.

Enter the tax code.

Click
http://www.sapfunctional.com/MM/Cookbook/PO/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/PO/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/PO/Create.htm


52/68

Click

Click

Click to scroll down the screen

Click

Click to maintain Payment terms

Note: - To send the message at the time of GR to the person who created the PO, click the

check box

Click


53/68

Click

Note: - Text can be maintained here.

Click

Click

Message will appear at the bottom


54/68

MM Cookbook - Goods Receipt against PO

By Subhajeet Behera

Definition:-

There are three types of main material movements in SAP. They are

Goods Receipt Good Issue Transfer Posting

Through MIGO transaction entire above three types of transactions can be performed. Thereare many options with MIGO transaction code.

Goods receipt is the process of receiving materials in to the storage location.

Example receiving goods with reference to PO, customer returns, from production. When goodsare received, inventory will be increased and relevant other documents will be adjusted.

During the material movement, material document is generated for all movements. Relevantaccounting and controlling documents are also created for relevant movement types.

Menu Path:-

Logistics Materials Management Inventory management Goods Movement MIGO Goods Movement (MIGO)


55/68

Double Click MIGO

Maintain the entries as explained below

Ensure Goods receipt is selected in the left top box above the header

details .

To look at the other possible entries click . Other possible entries are

Ensure is selected to make GR with reference to purchase order.

Other possible entries are


56/68

Above two fields indicate the Process and reference document. I.e. Goods Receipt withreference to Purchase Order.

Enter the purchase order number and serial number as shown below.

Note: - PO can be selected from the left side display. Left side display will show the pastpurchase orders used. To select from left side display, double click on the required PO.

Click

Note: - as soon as pressing the key display of purchase order in the above box where wementioned the PO will disappear.

Maintain the delivery notedetails


57/68

Click the tab screens one by one in the detail dataarea

Click

Click

Maintain the received quantity

Click to maintain the storage location where it is to be received


58/68

Note:- If the material is batch managed, batch number has to be entered.

Click

Click

Click at the bottom

Click at the top to verify the data correctness

Message will appear at the bottom.

Note: -If any warning or information message appeared, click to proceed.


59/68

Click

Message appear at the bottom.

Note:-

If the item is batch managed and the items under one delivery note with different batches are

received, quantity can be split into according to the batch size by pressing

Screen will appear as below

If the item is batch managed, batch column will also appear. Click after completingthe entry.


60/68

MM Cookbook - Create Contract

By Subhajeet Behera

Contract is an agreement between the vendor and the company to supply goods and servicesas per the agreed terms and condition.

At the time of negotiating, it may not be clear as of how much is required and when it isrequired. In such a situation, an open contract can be released on the vendor.

Every contract must be followed by a release order which is nothing but a normal PO withreference to the contract.

Contracts can be release centrally or with specific to plant. In case of multiple plants, centralcontract can be released and release order specific to each plants can be released.

Menu Path:-

Logistics Materials Management Purchasing Outline Agreement Contract ME31K Create

Double Click ME31K


61/68

Enter vendor number. E.g. IND6-1

Enter document type. Possible entries are

e.g select MK.

Click

Enter Purchase organization, purchasing group and storage location.


62/68

Click

Maintain the entries as shown below.

Click

Enter material code and target quantity. E.g. STJRM001 and 10000 respectively


63/68

Select the item

Click to maintain the pricing conditions

Note:- Condition which are already maintained in the info record only appear here. If required

add discount condition type manually.

Double click on item serial number to enter item detail tax

Click


64/68

Message will appear at the bottom


65/68

MM Cookbook - Create Scheduling Agreement

By Subhajeet Behera

Definition:-

Purchase order is an agreement between the vendor and a company to supply the goods at anagreed rate and at an agreed duration of interval.

Purchase order is a legal document between a vendor and a company. It covers the paymentterms and terms of delivery also.

Scheduling agreement is one of the purchase order types. It defines the agreement betweenvendor and the company similar to the PO. For every scheduling agreement, delivery scheduleis a must to indicate the supply schedule.

If scheduling agreement exist, MRP can automatically create the delivery schedule.

Let us create the scheduling agreement with vendor IND6-1 for material STJRM001.

Menu Path:-

Logistics Materials Management Purchasing Outline Agreement Scheduling Agreement Create ME31L Vendor

Known

Double Click ME31L


66/68

Maintain the entries as shown below

Click

Maintain the entries as shown below.


67/68

Click to maintain the item details

Maintain the entries as shown below

Click

Select the row by clicking the grey box in the left

Click to check the conditions


68/68

Note: - Scheduling agreement is used where the rate is fixed over the period of time without anychanges.

Click

Message would appear at thebottom

MM Cookbook .doc

Documents

Transcript of MM Cookbook .doc