SAP MM Overview for Technical

8/10/2019 SAP MM Overview for Technical

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FASTTRAK Team-Leader Workshop - 1 - L&K SAP Academy

SAP Materials Management overview for SAP Technical

A Facilitation Guide


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Table of contents

Procurement cycle ................................................................................................................................................................ 3Stock Management ............................................................................................................................................................. 11

Special procurement........................................................................................................................................................... 12

Subcontracting ................................................................................................................................................................ 13

Consignment.................................................................................................................................................................... 15

Stock transport order...................................................................................................................................................... 19

Physical inventory .............................................................................................................................................................. 25


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Procurement cycleMaterials Management deals with the procurement cycle. The various stages of procurement is described below.

1. Requirement determination: A department shows up a requirement of a particular material. It can also be

determined automatically (via MRP or APO). Typically a purchasing requisition is created for this purpose. This

can be viewed in EBAN table.

2. Source determination: The system can identify the source of supply automatically or it can also be done manually

A source can be another plant, quotation, contract, quota arrangement, source list etc.

3. Vendor selection: Using appropriate techniques, a vendor is identified (either manually or automatically).

4. Order processing: A purchase order is created against the purchase requisition. This is an external document and

is sent to the vendor. It is possible to have multiple levels of approval via release strategy (not covered in this

document).

5. Purchase order monitoring: The vendor might send a confirmation for the receipt of the purchase order, or that

they have sent the material (ASN Advance shipping notification). This information can also be stored in the

purchase order.

6. Goods Receipt: When the truck arrives at the gate, a goods receipt is posted. Upon goods receipt, the inventory

increases. In SAP accounting terms, the stock account is debited and the GR/IR clearing account is credited.


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7. Invoice verification: The vendor sends an invoice (a bill) of the materials they have sent. This is compared with

what has been ordered (in the PO) and what has been received (GR document). The invoice is posted; the GR/IR

account is debited and the vendor account is credited

8. Payment: This is an FI process. The vendor is paid according to the balance of the vendor account. The payment

can be via cheque, or direct credit to bank [depends on certain FI settings]

Lets assume the material AD_BBOOT_RS31504 is required in the plant MONT. This plant belongs to company codeAS01 (assignment in table T001K)

Requirement:

Txn ME51N is used to create a purchase requisition

Purchase Requisition 10000155 created. This can be viewed using txn ME53N. This purchase requisition can be seen intable EBAN.

Going with the story, the company has identified two vendors STAPLES and SKATERS who can supply the abovematerial. RFQs (request for quotation) are created and sent to the two vendors.

These are created using txn ME41N with reference no. BOOT and the RFQ is sent to vendors STAPLES and SKATERS.


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RFQs 6000000015 and 6000000016 are created. These can be viewed in table EKKO (header) and EKPO (item)A list of RFQs for a material can be viewed using txn ME4M.

The vendors have quoted their prices. These prices can be entered into the two RFQs. Lets assume STAPLES hasquoted $ 3.00 / pc and SKATERS has quoted $ 2.80 / pc. The prices can be maintained using txn ME47.

It is possible to perform price comparison of the two vendors using ME49 with collective no. BOOT. This collective numberhas been entered while creating the RFQs.


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The system has ranked SKATERS as 1, since it has a lower price.

It is possible to create a contract with reference to the above quotation.

Creating a contract with reference to the quotation using ME31K

Quantity contract 4600000006 created. This can be viewed using ME33K. This is present in table EKKO / EKPO

We are manually assigning the purchase requisition to a quotation using ME57N


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The PReq is assigned to the contract as in the screenshot above.

Creating a purchase order from the purchase requisition 10000155 using ME58

The purchase order can also be created using ME21N. Go to document overview -> My Purchase Requisitions


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Invoice verification

Invoice verification is performed using txn MIRO.

PO amount


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Reference PO

Upon saving, an invoice document 1000102 / 2008 is created. It can be displayed using txn MIR4

This document can also be viewed in table RBKP (header) / RSEG (item)

Vendor payment

This is an FI process. The vendor is paid using an appropriate process (not covered in this document)

Stock Management

You can view current stocks in the plant / storage location using txn MMBE

The current stock of our material AD_BBOOT_RS31504 has increased by 1000 pc because of the GR from vendor.

Managing various stock types

There are 3 types of stocks: Unrestricted stock Quality inspection stock

Blocked stock

This takes place via transfer posting using certain movement types: Eg

344 Unrestricted to blocked stock343 Blocked to unrestricted

Below is an example of using transfer posting to put some stock to blocked via 344 movement. Use txn MIGO and selectTransfer Posting Other. Change the movement type to 344


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Material document 4900000104 got created. This can be seen via MIGO (display material document) or via txn MB03.

The system shows that 100 PC have moved into blocked status

Special procurement


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SubcontractingThis is a special procurement scenario. In this case, the components (the raw materials) are provided by the company toa vendor (known as the subcontracting vendor). This vendor manufactures the product and the company pays a servicecharge to the vendor.

The steps are as follows

a) Creation of a subcontracting PO (with item category L)b) Provision of components to the vendorc) GR of the finished productd) Invoice verification for the invoice sent by vendor

The ownership of the components remains with the company, and not with the vendor.

Lets assume that the finished product AD_BBOOT_FSJJJ1 is to be procured from the subcontracting vendor NATIONAL,by issuing components BEARINGS and ECCROH13. This structure is known as a BOM (bill of materials) and can beviewed using txn CS03.

The PO 4500000203 is created

Txn MBLB shows what stocks are available with the subcontractor


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The vendor can later send an invoice which can be entered via MIRO (as a normal invoice)

Consignment

In a consignment scenario, the vendor sends goods to the premises of the company, but the ownership remains with thevendor. A vendor liability is created only after the goods have been used (goods issued or transferred into own stock)

The steps for consignment are:a) Creation of consignment PO (with item category K)

b) GR against the consignment PO company is not liable to pay to the vendor yet. No accounting documentscreatedc) Goods issue to a cost center or transfer to own stock. Accounting documents are created, vendor account is

credited.d) The liabilities are cleared via txn MRKO.

Creation of purchase order


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Step 2: GR from the consignment vendor using MIGO (Goods receipt Purchase Order)

Material document 5000000103 is created

The vendor consignment stock rises (as viewed using txn MMBE)


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Issue consignment goods to own stock with movement 411 K. use txn MIGO Transfer Posting other


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Material document 4900000108 posted.

The stock levels show that 100 PC has been added to our inventory / vendor consignment stock has reduced

The vendor liabilities can be settled using txn MRKO


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Since 100 PC have been issued, the company is liable to pay 100 x 1.2 MXP to the vendor. The price comes fromconsignment info record ME13.

Stock transport order

This happens when goods are moved from one plant to another. There are two ways of doing this With shipping Here a delivery is created, and goods are managed with a delivery Without shipping A transfer posting takes place. Delivery comes into picture.

This document will show STO both with and without shipping

STO with shipping:

Lets assume 10 pc of material E_PAD_99 is to be moved from plant MEXT to MONT. The steps are as followsa) Creation of an STO purchase order with type UB by the receiving plantb) Creation of delivery against the STO using txn VL10Bc) Picking and goods issue of the deliveryd) Goods receipt in case of two step movements, and no GR in case of one step movement (since it happens in the

previous step)

Step a: Creation of STO (using txn ME21N)


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Document type is UBSupplying plant MEXT and receiving plant MONT

STO # 4500000205 is created

Step b: Creation of delivery against STO (txn VL10B)

Create by clicking on Background

Delivery 80000092 is created against the STO. This can be viewed in the PO history tab at the item level


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Delivery picking

This is done by entering the picked quantity txn VL02N

Click on post goods issue to perform goods issue

Material document 4900000109 created for goods issue and receipt. It can be viewed using ME23N / PO history.


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STO without SD

In this case, the steps area) Creation of STO by the receiving plantb) Transfer posting to stock in transit by the supplying plant

c) GR by receiving plant

Lets assume the material E_PAD_99 is to be transferred from plant MONT to plant MEXT via STO

Step a: STO 4500000206 created using ME21N.Step b: Transfer posting using txn MIGO (Goods Issue Purchase order)


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Upon posting, material document 4900000110 is created.

Step c: GR against PO (using txn MIGO Goods Receipt Purchase Order) using movement type 101


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Upon posting, material document 5000000104 created.

Both these movements can be viewed in the PO history (table EKBE)


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Physical inventory

Physical inventory involves physical counting of materials.

These are the steps of physical inventorya) Creation of a physical inventory documentb) Actual counting of materials in the plant / warehousec) Entering countd) Clearing differences

Lets assume two materials AD_BBOOTS_RS345VB and AD_BBOOTS_RS345VM are being counted in plant MONT /

storage location MAIN.

Current stocks are (as per MMBE)

AD_BBOOTS_RS345VB: 300 pc AD_BBOOTS_RS345VM: 0 pc

Step a: Creation of PI document using txn MI01


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Upon saving PI document 1000102 / 2008 created. This can be viewed using txn MI03 and in table IKPF (header) andISEG (items)

Step c: Once physical counting is complete, the counts are entered using txn MI04. Lets assume 295 pc ofAD_BBOOTS_RS345VB was found (5 less than the book quantity) and 10 pc of AD_BBOOTS_RS345VM was found (10more than the book quantity).

Upon saving the count is entered. These counted values can be displayed using txn MI06 / changed using txn MI05

Step d: Posting differences against the PI document

Since there is a loss / gain of materials due to physical inventory, there will be an accounting impact. This differenceneeds to be reflected both in the inventory levels (via material documents) and the accounting levels (via FI documents)

Posting differences creates material as well as FI documents.

Use txn MI07 to post differences.


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Upon saving, material document 4900000111 created.

Reduction in inventory of 5 pc via 702 movement Increase in inventory of 10 pc via 701 movement

Appendix:

MM on SAP help:http://help.sap.com/saphelp_erp60_sp/helpdata/en/9c/df293581dc1f79e10000009b38f889/frameset.htm

List of MM tables: http://www.sap123.com/showthread.php?t=1

SAP MM Overview for Technical

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