SAP MM & PP Course Material

December, 2007

Sample Training Lecture Slides

R/3 Org Structure Overview - MM

Client

Bus. Area2000

Bus. Area1000

Company0003

Company0002

Company0001

Bus. Area3000

Company Code

Sto.Loc.0001Plant

0001Sto. Loc.

0002

Plant0002

Sto. Loc.0003

Plant0003

PlantPurchase Org

Storage Location

Materials ManagementFinancial

Valuation Area in SAP MM

Valuation Area is either “Company Code” or “Plant”. When stock is valuated at plant level, you can valuate a material in different

plants at different prices. When you valuate stock at company code level, the valuation price of a material

is the same in all of a company's plants (that is, in a company code). SAP recommends that you valuate material at plant level. Valuation at plant level is mandatory if you want to use either of the Production

Planning or Product Cost Accounting components

Purchase Requisition (PR) Process Flow

Approval Required?

Purchasing

No

Yes

MRP-controlled?

Yes

No

Convert to PO via MRP

List

PurchaseOrders

ReleasedRequisitions

Release Requisition

Req. Created Automatically or Converted from

a Planned Order in PP

Enter Requisition

Requisitions

MRP Run in SAP

Services or Materials Required (Outside of Those

Handled by MRP)

G/L Account Postings from GR

Material Price -$10 a piece

Amount $100/(10 PC * $10)

Order Price -$12 a piece

Amount $120/(10 PC * $12)

GR Diff - $2 a piece

Amount $20

Invoice Price -$11 a piece

Amount $110/(10 PC * $11) +

Tax $11Total Due $121

Invoice Verification Process

Purchase Order

Goods Receipt

Purchase Req Tax Calculation

Tax Calculation

Invoice Receipt

Pay to Vendor

Purchase Order based Invoice Process

Tax is estimated on PO Price

Tax is expensed at Goods Receipt

Tax is paid or accrued at Invoice Receipt

CBP Vs. MRP - Key Differences

MRP is based on current and future sales. Useful for the planning of finished products and important assemblies and components. Requirement elements are sales orders, planned independent requirements, material reservations.

CBP is based on historical data and uses material forecasts or statistical procedures to determine future requirements. It is not triggered by independent or dependent requirements. It is either triggered by the available stock level falling below the reorder point or by forecast requirement calculated from historical data.

M

R

P

C

B

P

MRP Type: Changed to Reorder Point Plan

Reqd Date

Reqd Qty

Material

12/24200Golf Iron

ReservationPurchase Req - creation indicator

Matl Master - MRP 1 View

Matl Master - MRP 2 View

Multiple PRs are created to cover reqd qty: 237, because order qty is limited by ‘fixed lot size’ of 60 per planned order / pur req

MRP Type - Reorder Point Plan

Super BOM - Maintenance Screen

• Class Item as BOM Component• Will be replaced by a material based on char value assigned during BOM config for an order

• Variant Items / Alternate Items as BOM Components• One of the alternatives will be selected based on char value assigned during BOM config for an order

• BOM Component is a Configurable Material.• Contains a Class Item

PC CASE - Configurable Item, contains ‘Class Item’

PC ASSY - A Configurable Item, contains another ‘Configurable Item’, PC CASE.

Configurable BOM - Config Simulation

Simulation - Assign / Pick Char ValueResult of Parent BOM (Level 0) - PC Assy

Result of Child BOM (Level 1) - PC Case

Result of Child BOM (Level 2) - Fan & Heat SinkLe

vel 1

Level 2

1 2

3

4

Level 0

Level 1

Level 2

Auto selection via ActionUser selection

Capacity Leveling in Planned Order

Planned order capacity situation shows an ‘over load’ of 43.2% at Work Center WC 1 where the operation is carried out.

• Required capacity: 79.58 HR

• Available capacity: 55.57 HR

• Cap Load: 143.2%

Overload on 1/9

No overload during other

periods

Capacity Evaluation - Order Qty 100

Production Order Settlement ExampleOrder Settlement Doc GR for Order (Post this Before Settlement)

Accounting Doc - Settlement Result

Controlling Doc - Settlement Result

Settlement - Sender & Receiver

KANBAN Execution - Example - Step 2

Employee responsible for Supply SA sees the ‘container’ status.

A new PO ‘4500000096’ is automatically created, because the ‘Replenishment strategy’ is set to ‘External Procurement with Purchase Orders’

The PO is for qty 2 PC as ‘kanban’ qty is set to 2 in ‘control cycle’. The PO will be sent to the Vendor ‘3000’

Employee sets ‘status’ to ‘In Process’, yellow color.