SAP S/4HANA Implementation SAP MM Overview Training

SAP S/4HANA ImplementationSAP MM Overview TrainingApril 2019

1. SAP Overview

2. Material Management (MM) Overview

3. MM Organizational Structure

4. MM Master Data

5. Procurement Process

6. Inventory Management

Agenda

SAP Overview

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SAP Overview

SAP stands for Systems, Applications and Products in Data Processing.

It is an enterprise-wide software application with modules based on business areas such as finance, sales, production and materials management.

These SAP modules are fully integrated and share common data.


SAP Overview

SAP HANA

ERP

Material Management

(MM)

Sales and Distribution

(SD)

Human Capital

Management (HCM)

Plant Maintenance

(PM)

Project System (PS)

Finance and Controlling

(FICO)

Production Planning (PP)


SAP Overview

Material Management Overview


Material Management (MM) Introduction

Material Management (MM) module is fully integrated with other modules in SAP System.

Material Management (MM) Modules supports all the phases of Procurement Environment :

Material Planning & Control

Contract & Scheduling Agreement

Purchasing

Goods Receipt and Goods Issue

Logistics Invoice Verification

Transfer Posting

Physical Inventory

SAP HANA

ERP

Material Management

(MM)


(SD)

Human Capital

Management (HCM)

Plant Maintenance

(PM)

Project System (PS)

Finance and Controlling

(FICO)

Production Planning

(PP)


Material Procurement Flow

Internal and ExternalAccounting


Material Requirements Planning

External ProcurementPurchasing

Internal ProcurementProduction

Inventory Management

Invoice Invoice Verification

Master Data•Material•Vendor•PIRInvoice

Receipt

Goods

Receipt

Goods

IssueTransferPosting

WarehouseManagementWarehouse

Management

Material Procurement Flow involves several steps and integrates with other modules like PP,

SD, WM, FICO

Organizational Structure


MM Organizational Structure

Company -Client

Company -Client

Company Code 1

Company Code 1

Plant 1000Plant 1000

Storage Location

0001

Storage Location

0001

Storage Location

0002

Storage Location

0002


Company Code 2

Company Code 2


Cross-Plant

Purchasing Org.

Central

Purchasing Org.

Plant-specific

Purchasing Org.

Purchasing

Group 1

Purchasing

Group 2

Master Data


Material Master Data

The material master is a central data object in the SAP System.It contains the data on raw materials, operating resources,

semi-finished products, finished products,

production resources/tools.....which are used by transactions

in many modules of the SAP system.


Material Master Data

MaterialMaster Record

MRP

Stocks inplant/warehouse

Accounting

WarehouseManagement

Storage

Basic Data

Purchasing

Sales

Forecasting

Work scheduling

Data in Views with/without Organization


Purchasing data Accounting data

General data

Vendor MasterRecord

The vendor master record consists of

three areas:

General data

Data that applies equally to each

company code within enterprise

(address, telephone number, language to

communicate with vendor, etc.).

Accounting data

Accounting data is maintained at

company code level, include Tax

Information, Bank details, Reconciliations

account, Payment terms…

Purchasing data

Purchasing data is entered at Purchasing

Organization level, includes control data

required in purchasing, purchasing

default fields…

Business Partner (Vendor)


Business Partner (Vendor)


Describe the supply relationship for a material and a vendor

Data Includes:

• Material number

• Vendor number

• Vendor-specific data on deliveries, delivery tolerance, pricing and text

During purchase order entry, data can be proposed from PIR into the PO.

ExampleIn case “Engine oil filter” is procured from two different vendors E.gMarubeni and Multico then two different Purchasing information records needs to be maintained in system. This is to ensure the Price, Procurement time are accurately maintained in system based on the source.

Vendor Procurement time

Price

Marubeni 7 200 USD

Multico 14 150 USD

Item: Engine Oil filter

Purchasing Information Records

Procurement Process

Procurement Process

Requisition

ProcurementProcurement

6

4

27SourceSource

determinationdetermination

1 Requirements determinationRequirements determination

Goods receipt andGoods receipt andinventory managementinventory management

8 Payment

3 Vendor selectionVendor selection

10

20

30

PurchaseOrder

10

20

30

Order processingOrder processing

Vendor

invoice

5 Order follow-upOrder follow-up

PurchaseOrder

10

20

30

?

Invoice verificationInvoice verification

Procurement Process


Quotation

PurchaseRequisition

Quotation

PurchaseOrder

RFQ

Sourceof

Supply

Vendor A

Vendor B

Vendor CRejectionLetter

Purchasing

Master data

RFQ campaign = common collective numberRFQ campaign = common collective number

RFQ 2

Vendor B

Material 1

Material 2

Material 3

RFQ 3

Vendor C

Material 1

Material 2

Material 3

? ? ?

RFQ 1

Vendor A

Material 1

Material 2

Material 3

Contract

Purchase Requisition Process

Purchase Order Process

Approval Process – Release Strategy

PR/PO

10

20

30

Approval Level n

PR/PO

10

20

30

Reject

Approve

Approval Level 1Approve

ReleasedPR/PO

10

20

30

PR/PO

10

20

30

Reject

• PR/PO Amount

• Other

parameters, i.e.

Plant,

Purchasing Org.

etc.

Release

Strategy

Release Strategy determines:

Whether this PR/PO need to go through approval process

How many level of approval required

Who are approvals

Based on:

Amount

Other parameters i.e. Plant, Purchasing Org. etc.

Procurement for Stock/Consumption

Subcontracting Process


Return To Vendor


Logistics Invoice Verification

Materials Management

Materials Management

AccountingAccounting

Order DocumentVendor

Delivery Date

Price Conditions

Materials

Quantities

Purchase Order

Accounting DocumentVendor

Quantity

Account Postings

Invoice Verification

InvoiceInvoice

GR DocumentDelivery Date

Materials

Quantity

Account Postings

Goods Receipt

Three Way Matching




handle all type of Goods

Movement, includes:

Goods receipts

From Vendor

From Production

Goods issue

To Consumption

To Production

To Customer

Transfer Posting


Movement type describes the type of

stock posting in inventory. The

movement type is used for all types

of movements:

Goods Receipt

Goods Issue

Transfer

Reversal

Movement type determines:

Account determination

Field selection

Indicators

Etc.

Movement Type


Movement Type


Effect of Good movement

Material Document Accounting document

Relates only to one Company Code

DR Cr.

Trial Balance

For each material movement two documents are normally created:

Updating Stock

On a Quantity Basis

___________________Material MasterSpecial Stocks

___________________Stock Fields per Plant and Storage Location

On a Quantity Basis

___________________Material MasterSpecial Stocks

___________________Stock Fields per Plant and Storage Location

On a Value Basis__________________

G/L Accounts__________________

Debits and Creditsper

Company Code,Period

On a Value Basis__________________

G/L Accounts__________________

Debits and Creditsper

Company Code,Period


Goods Receipt


Materials can be issued to:

Cost objects: Cost center,

WBS element, Network,

Production Order etc.

Sales Order

Reservation

Delivery

Goods Issue


Storage loc. 0001Storage loc. 0002 Storage loc. 0001

Stock transfer

Goodsreceipt

Goodsissue

Goodsreceipt

Mat.doc. Stock transfer

FI doc.Mat.doc.

GI

Unrestricted

use

GR

Unrestricted

use

Stock in

transfer

GR

Unrestricted

use

One-step procedure or Two-step procedureOne-step procedure or Two-step procedure

Plant 1 Plant 2Plant 1

GI

Unrestricted

use

GI

Unrestricted

use

Goodsissue

Stock Transfer


Transfer Posting

SAP AG 1999

A

B B C

B

A

B B C

B

Stock inQI

Blockedstock

A

B B C

B

Unrestricted-use

stock

A

B B C

B

Consignment

stock


Physical Inventory


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SAP S/4HANA Implementation SAP MM Overview Training

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