Training Reference Document Template

DOCUMENT NO REVISION NO ISSUE DATE PAGE

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PROCUREMENT

REFERENCE DOCUMENT

MATERIAL MASTER RECORDS

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CREATE MATERIAL MASTER RECORD


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CONCEPTION/PRESENTATION SHEET

(Note: Upon approval, delete the information below the dashed line. This then becomes a Presentation Sheet.)

TARGET AUDIENCE: MRP Controllers DURATION: 4 hours OBJECTIVES: - Create a Material Master Record on SAP.

- Distinguish between Material Type and Industry Sectors.

CONTENTS: - Material Master Database - Material Master Records - Create a Material Master Record - Complete Form FM-PQ-07

TRAINING AIDS: PC/person, PC screen projector, use of copy of

production system and Trainee Evaluation Sheets. REFERENCE SOURCES: REFERENCE PERSONS: PREREQUISITES: P11_15 Master Data Overview FOLLOWING MODULES: P11_11 Material Ownership MODULE DEVELOPER: DATE OF APPROVAL: TRAINING KIT INCLUDES: REFERENCE DOCUMENT (TR) PRESENTATION FILE (TP) ------------------------------------------------------------------------------------------------------------------------- HTC owner: Approver:

Development dates: Start: 1st Review Committee: 2nd Review Committee: Approval: 1st Presentation: Final Approval:

CONCEPTION SHEET APPROVAL

HTC SPECIALIST DEPT. MANAGER DATE

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DOCUMENT CONTROL DOCUMENT NO: TRP11_16

DOCUMENT REVISION CONTROL CONTROL COPY:

0 REVISION

NUMBER PAGE

NUMBER/S CHANGE EFFECTED

DATE OF ISSUE

0.1 1 - Last First draft issued for Review 30-09-97 0.2 1 - 93 Incorporate comments from V Nemakula & E Mansoor 06-10-97 1.0 1 - 93 Issue for final approval 08-10-97

ROUTING SLIP FOR LAST REVISION NUMBER ROLE RESPONSIBILITY REVIEW DATE

ORIGINATOR NAME DEPARTMENT MANAGER PROCEDURE CO-ORDINATOR

REVIEWER 1 REVIEWER 2 REVIEWER 3 FINAL REVIEW BY APPROVED BY

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REFERENCE DOCUMENT MAINTENANCE RECORD

Note to Presenters of this module: Please record here your concerns, suggestions, etc. should you feel these would be of value in future revisions of this reference document. Your views are appreciated.

DATE PAGE NO.

CONCERN/PROBLEM/ERROR AND SUGGESTED IMPROVEMENT

PRESENTER NAME

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ABSTRACT

To implement an integrated system of production planning and materials management, you must have a central database wherein anyone in your company can find out all there is to know about any material passing through the plant.

Everyone must use the same rules and data structures when they enter data about material details.

The integration of all material data in a single database object eliminates redundant data storage. Areas such as purchasing, inventory management, material requirements planning (MRP), invoice verification, and so on, can all use the same data.

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TABLE OF CONTENTS PAGE

Conception / Presentation Sheet 2 Document Control 3 Reference Document Maintenance Record 4 Abstract 5

1. INTRODUCTION.......................................................................................................................... 8

2. MATERIAL MASTER DATABASE........................................................................................... 9

2.1 FUNCTION AND USE OF THE MATERIAL MASTER......................................................... 9 2.2 DATA STRUCTURE................................................................................................................. 9

2.2.1 CLIENT ............................................................................................................................. 11 2.2.2 COMPANY CODE ............................................................................................................ 11 2.2.3 PLANT............................................................................................................................... 11 2.2.4 STORAGE LOCATION..................................................................................................... 11

3. MATERIAL MASTER RECORDS ........................................................................................... 12

3.1 DEPARTMENTAL DATA...................................................................................................... 12 3.1.1 WORK SCHEDULING ..................................................................................................... 13 3.1.2 ACCOUNTING ................................................................................................................. 13 3.1.3 MRP (MATERIAL REQUIREMENTS PLANNING) ......................................................... 13 3.1.4 PURCHASING.................................................................................................................. 13 3.1.5 PRODUCTION RESOURCES/TOOLS............................................................................. 13 3.1.6 COSTING.......................................................................................................................... 13 3.1.7 CLASSIFICATION............................................................................................................ 13 3.1.8 BASIC DATA..................................................................................................................... 13 3.1.9 STORAGE ......................................................................................................................... 14 3.1.10 WAREHOUSE MANAGEMENT..................................................................................... 14 3.1.11 FORECASTING .............................................................................................................. 14 3.1.12 QUALITY MANAGEMENT............................................................................................. 14 3.1.13 SALES.............................................................................................................................. 14

3.2 INTERDEPENDENCY OF USER DEPARTMENT AND ORGANIZATIONAL LEVELS . 14 3.3 MATERIAL NUMBER ........................................................................................................... 16 3.4 INDUSTRY SECTOR.............................................................................................................. 17

3.4.1 FUNCTION OF INDUSTRY SECTOR:............................................................................ 18

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3.4.2 AVAILABLE INDUSTRY SECTORS:................................................................................ 18 3.5 MATERIAL TYPES ................................................................................................................ 19

3.5.1 FUNCTION OF MATERIAL TYPE: ................................................................................. 20 3.5.2 AVAILABLE MATERIAL TYPES:..................................................................................... 20

3.6 SCREEN SEQUENCE AND FIELD SELECTION................................................................. 20

4. CREATE A MATERIAL MASTER RECORD........................................................................ 21

4.1 CHECKLIST............................................................................................................................ 21 4.2 WHEN DO YOU CREATE A MATERIAL MASTER RECORD .......................................... 22 4.3 CREATING A MATERIAL MASTER RECORD................................................................... 23

4.3.1 MENU PATH .................................................................................................................... 23 4.3.2 INITIAL SCREEN ............................................................................................................. 23 4.3.3 SELECT VIEWS ................................................................................................................ 23 4.3.4 ORGANIZATIONAL LEVELS........................................................................................... 24 4.3.5 BASIC DATA VIEW .......................................................................................................... 26 4.3.6 CLASS TYPE..................................................................................................................... 33 4.3.7 GENERAL CLASSIFICATION ......................................................................................... 34 4.3.8 GENERAL PURCHASING DATA .................................................................................... 36 4.3.9 GENERAL PURCHASE ORDER TEXT............................................................................ 42 4.3.10 MRP 1 ............................................................................................................................. 44 4.3.11 MRP 2 ............................................................................................................................. 58 4.3.12 FORECASTING .............................................................................................................. 66 4.3.13 STORAGE VIEW............................................................................................................. 75 4.3.14 WAREHOUSE MANAGEMENT: THIS IS NOT IN USE AT COMPANY...................... 80 4.3.15 QUALITY MANAGEMENT............................................................................................. 85 4.3.16 ACCOUNTING VIEW..................................................................................................... 90

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1. INTRODUCTION

MATERIAL MASTERThe material master contains all the information on all materials that a company procures, produces, stores, and sells. It is the company's central source for retrieving material data.

MATERIAL MASTER RECORD

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2. MATERIAL MASTER DATABASE

2.1 FUNCTION AND USE OF THE MATERIAL MASTER

The integration of all material data in a single database object eliminates redundant data storage. Areas such as purchasing, inventory management, material requirements planning (MRP), invoice verification, and so on, can all use the same data. The data in the material master is used to perform the following functions in the SAP Logistics system:

• Purchasing for purchase order processing

• Inventory management for goods movement postings and physical inventory management

• Invoice verification for posting invoices

• Sales for order processing

• Production planning and control for material requirements planning, scheduling, and work scheduling

2.2 DATA STRUCTURE

The material master has a hierarchical structure resembling the organizational structure of a company. Some material data is valid at all organizational levels, while other data is valid only at certain levels.

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001Alusaf Ltd

0100Alusaf Ltd

1100Hillside

1116Canteen

1115Casthouse

1150 Lab

1300Bayside

Client

Company Code

Plant

StorageLocation

1200Corporate

Material 14399Belt, wedge

14400Coupling

14401Coupling

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2.2.1 CLIENT

In commercial, organizational, and technical terms, a client is a self-contained unit in an R/3 System with separate master records and its own set of tables. General material data applicable to the entire company is stored at client level. This includes, for example, material group, base unit of measure, material descriptions, and conversion factors for alternative units of measure.

Example: 001 for Company Limited

2.2.2 COMPANY CODE

A company code is the smallest organizational unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting. This involves recording all relevant transactions and generating all supporting documents for the legally required financial statements such as balance sheets and profit and loss statements.

Example: 0100 for Company Limited

2.2.3 PLANT

A plant is an organizational unit within a company that produces materials or makes available goods and renders services. All data that is valid for a particular plant, as well as for the storage locations belonging to it, is stored at plant level. This includes, for example, MRP data and forecast data.

Example: 1100 for Company 1200 for Corporate 1300 for Company B

2.2.4 STORAGE LOCATION

A storage location is an organizational unit that allows the differentiation of material stocks within a plant.

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3. MATERIAL MASTER RECORDS

All the information your company needs to manage a material is stored in a data record in the material master, the material master record. A material master record therefore contains all the main data on a material, sorted by various different criteria. You can enter and change the majority of data in a material master record yourself. However, some information can only be updated by the system. For example, the system updates the administrative data when you process a material master record, and stock balances when goods receipts or goods issues are posted. Moreover, the data in a material master record can be divided into two categories:

• Data of a purely descriptive nature This is data with an information content such as name, size, or dimension.

• Data that the system uses to perform a control function This is data such as MRP type and price control.

3.1 DEPARTMENTAL DATA

Since different departments in a company work with the same material, but each department uses different information on that material, the data in a material master record can also be subdivided in terms of the departments to which it belongs.

MATERIALMASTER RECORD

Warehousemanagement

MRP

Sales

Storage

Stock in plant /storage location

Forecasting

Qualitymanagement

Work scheduling

Purchasing

Engineering /design

AccountingMaintenance

Production

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3.1.1 WORK SCHEDULING

Data required for production scheduling. Examples: tolerance data and in-house production times.

3.1.2 ACCOUNTING

Data relating to material valuation and automatic account determination. Examples: price control, standard price or moving average price, valuation class.

3.1.3 MRP (MATERIAL REQUIREMENTS PLANNING)

Information on MRP. Examples: MRP type, safety stock, and planned delivery or production time for a material.

3.1.4 PURCHASING

Material data provided by the purchasing department. Examples: purchasing group responsible for the material, permissible over-delivery and under-delivery tolerances, and purchase order text.

3.1.5 PRODUCTION RESOURCES/TOOLS

Information on the use of a material as a production resource/tool. Examples: use in particular task list types, grouping keys, default values for task lists and production orders.

3.1.6 COSTING

Data needed for costing purposes. Examples: product/unit costing, costing lot size, default valuation data.

3.1.7 CLASSIFICATION

Typical material classification data. Examples: assignment to one or more classes, characteristic value assignment, standard class.

3.1.8 BASIC DATA

Technical information on the engineering/design of a material. Examples include document management data, International Article Numbers (EANs), and dimensions.

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3.1.9 STORAGE

Information on storage and transportation. Examples: storage conditions and packaging sizes.

3.1.10 WAREHOUSE MANAGEMENT

Information on stock placement and stock removal. Examples: storage type for stock placement and stock removal, and loading equipment quantities.

3.1.11 FORECASTING

Information used to predict material requirements. Examples: forecast model and forecast period.

3.1.12 QUALITY MANAGEMENT

Data relating to quality management. Examples: technical delivery terms, certificate type requirement, QM inspection data (one type for each event).

3.1.13 SALES

Information on sales and shipping. Examples: product hierarchy, account assignment group, pricing reference material, sales text.

3.2 INTERDEPENDENCY OF USER DEPARTMENT AND ORGANIZATIONAL LEVELS

Depending on the department to which you belong, you may need to enter additional organizational levels and control parameters. One important factor is the organizational level at which the data is managed. The table below shows you which data you must/can specify, and when.

User Departments/Views and Entries Required

Select the user department ...

... and fill in the fields An entry is ...

Accounting Plant (if valuation at plant level)

Mandatory

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Company code (if valuation at company code level)

Mandatory

Select the user department ...

... and fill in the fields An entry is ...

Basic data None

Classification None

Costing Plant Mandatory

Forecasting Plant Forecast profile

Mandatory Optional

MRP Plant Storage location MRP profile

Mandatory Optional Optional

Production resources/ tools

Plant Mandatory

Purchase order text

None

Purchasing Plant Optional

Quality management

Plant Mandatory

Sales: sales org. data

Sales organization Distribution channel

Mandatory Dependent on sales org.

Sales: general/ plant data

Plant Sales organization Distribution channel

Optional Optional Dependent on sales org.

Sales text Plant Sales organization Distribution channel

Optional Mandatory Dependent on sales org.

Storage Plant Storage location

Optional Optional

Warehouse management

Plant Warehouse number Storage type

Optional Mandatory Optional

Work scheduling Plant Mandatory

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3.3 MATERIAL NUMBER

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For every material that your company uses, you must create a material master record in the material master. This record is uniquely identified by a material number. At Company you do not enter a material number when creating a material master record. The system fills the field with the word “Internal” until you save the material master record. Upon saving the material master record, it assigns a consecutive number automatically. The number assigned to the record will be displayed at the bottom of the screen.

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3.4 INDUSTRY SECTOR

Industry sectors have control functions in the SAP R/3 System. Once an industry sector has been assigned to a material, it can no longer be changed.

M for Mechanical

C for Chemical

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3.4.1 FUNCTION OF INDUSTRY SECTOR:

When you create a material master record, the industry sector you specify determines:

• which screens appear and in what sequence

• which industry-specific fields appear on the individual screens

3.4.2 AVAILABLE INDUSTRY SECTORS:

A Plant engin./construction C Chemical industry D Dienstleistung L Aluminium

M Mechanical engineering P Pharmaceuticals

At Company you always select M for Mechanical Engineering. You may find it useful to predefine this in the system, that is, to set Mechanical as your default industry sector. This value is then proposed automatically whenever you create a material master record.

1. Select M at the Industry Sector field, as well as your Material Type in the next field.

2. From the initial screen of the application function Create material, select Defaults → Industry sector. A dialog box appears.

3. Enter the key for the industry sector that you want to set as a default.

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If you do not want the Industry sector field to be displayed on the initial screen when creating a material master record, select the indicator Hide industry sector. The industry sector will not reappear on the initial screen until you cancel this selection.

3.5 MATERIAL TYPES

When creating a material master record, you must assign the material to a material type. The material type determines certain attributes of the material and has important control functions. Materials with the same basic attributes are grouped together and assigned to a material type. This allows you to manage different materials in a uniform manner in accordance with your company's requirements. Examples of material types are raw materials, semi-finished products, and finished products.

HIBE - OperatingSupplies

ERSA - Spare Parts

DIEN - Service

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3.5.1 FUNCTION OF MATERIAL TYPE:

The material type you choose determines:

• which screens appear and in what sequence

• which departmental data you may enter In addition, the material type determines the material's procurement type, that is, whether a material is manufactured in-house or procured externally, or whether both are possible.

3.5.2 AVAILABLE MATERIAL TYPES:

• DIEN (Services) Services are procured externally and cannot be stored. A material master record of this material type can always contain purchasing data.

• FERT (Finished products) Finished products are produced by the company itself. Since they cannot be ordered by Purchasing, a material master record of this material type does not contain purchasing data.

• HIBE (Operating supplies) Operating supplies are procured externally and required for the manufacture of other products. A material master record of this material type can contain purchasing data but no sales data.

• NLAG (Non-stock material) Non-stock material is material that is not held in stock because it is consumed immediately.

• ROH (Raw materials) Raw materials are always procured externally and then processed. Since raw materials cannot be sold, a material master record of this material type contains no sales data.

3.6 SCREEN SEQUENCE AND FIELD SELECTION

When processing a material master record, you work through its screens in a set sequence. The screen sequence and field selection in a material master record depend among other things on the following questions:

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• Which SAP components does your company use? If, for example, your company does not yet use the SAP Warehouse Management system, the warehouse management screens do not appear.

• To which industry sector does your company, and therefore your materials, belong? If, for example, your company belongs to the chemical industry, the fields that appear on the screens will not be the same as for a mechanical engineering company.

• To which material type do you assign a material? If, for example, the material is a raw material, the sales screens are not displayed in the standard R/3 System because raw materials cannot be sold.

• For which organizational level(s) do you wish to enter data? If you enter data at plant level only, fields specific to storage location are hidden.

- Plant- Storage location

Organizationallevels

Views- Engineering/

- Purchasing..

MaterialMaterial

(Industry)(Material type)

Data screen(s)

.

.

.

design

4. CREATE A MATERIAL MASTER RECORD

4.1 CHECKLIST

Before you create a material master record, consult the following checklist:

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• Are you sure there is no material master record in the system for this material?

• Is there already a similar material in the system that you can use to enter data?

• Which industry sector does the material belong to?

• What is the material's material type?

• What description do you want to give the material?

• In what unit of measure do you want to manage the material?

• If you enter basic data or if you enter purchasing data, to which material group do you want to assign the material?

• If you enter MRP data, which procedure will be used to plan the material?

• If you enter forecasting data, which model do you want to use to forecast material requirements?

4.2 WHEN DO YOU CREATE A MATERIAL MASTER RECORD

You must create a material master record in the following cases:

• If the material you need is not defined in the material master; in other words, if there is no material master record for that material. In this case, you create the material master record.

• If the material you need is already defined in the master record but the data for a specific user department is missing. In this case, you extend the material master record by selecting the Create function.

• If your user department data has already been entered for the material you need but not at the appropriate organizational level (for example, a different plant). In this case, you extend the material master record by selecting the Create function.

There are three different approaches to creating material data in the system:

• Creating a Material Master Record

• Creating a Material Master Record with a Reference

• Extending a Material Master Record The approach you adopt depends on what data is already in the system. In all cases, you use the Create function.

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4.3 CREATING A MATERIAL MASTER RECORD

4.3.1 MENU PATH

• If you want to create a material master record and you want the data to be available immediately, call up the material master menu screen and choose Logistics → Materials Management → Material Master → Material → Create (general) → Immediately.

• If you want to schedule the creation of a material master record for a particular date in the future, call up the material master menu screen and choose Logistics → Materials Management → Material Master → Material → Create (general) → Schedule.

4.3.2 INITIAL SCREEN

• Material: Leave the field blank.

• Industry Sector: Assign the material to an industry sector. Refer to page 17 to set the default Industry Sector to M for Company materials.

• Material Type: Assign the material to a material type.

4.3.3 SELECT VIEWS

As soon as the industry sector and material type is assigned and you click on enter, the Select Views dialog box appears. Select the views (that is user

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departments) for which you want to enter data. Refer to paragraph 3.6 for screen sequences.

4.3.4 ORGANIZATIONAL LEVELS

The Organizational Levels/Profiles dialog box now appears. Specify the organizational levels necessary for your departments.

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To reach the data screen for the first user department, press ENTER.

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4.3.5 BASIC DATA VIEW

1 2

3 4

5

6

8 7

10 9

11

12

13

15

14

16

17

18 19

20

21 22 23

27 24 25 26

28

29

30

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1. Base unit of measure

This information is mandatory and identical for all departments. The unit of measure in which stocks of the material are managed. The system converts all the quantities you enter in other units of measure (alternative units of measure) to the base unit of measure.

2. Material group

Material groups allow you to group together materials that have the same attributes.

• 36 Spec Indus Machinery

• 37 Gardening & Tools

3. Old material number

Number under which you have managed the material so far or still manage it, for example, in another system or in a card index.

4. Lab./office

Key for the cost centre responsible for the material, eg:

BA Business Management Systems

CA Casthouse

EA Engineering

FA Finance

5. Division

A way of grouping materials, products, or services. The system uses divisions to determine the sales areas and the business areas for a material, product, or service. A product or service is always assigned to just one division. From the point of view of sales and distribution, the use of divisions lets you organize your sales structure around groups of similar products or product lines. This allows the people in a division who process orders and service customers to specialize within a manageable area of expertise. Eg:

01 Company Procurement

02 Corporate Div

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6. Product allocation

Product allocation determination procedure

7. Language

The language key indicates the language used to:

• Display texts

• Enter texts

• Create printouts

8. Material description

Text containing up to 40 characters that describes the material in more detail.

9. Basic material

Basic constituent of which the material is made. This field is purely for information.

10. Ind. std descr.

Description of the material in accordance with the appropriate industry standard (such as ANSI or ISO). This field is purely for information.

11. CAD indicator

This indicator shows that the object (such as BOM or document) was created or changed from a CAD system.

12. Net weight

Net weight of the material expressed in the unit of weight. This weight is given in the unit of measure that you specify in the "Unit of weight" field later in this view.

13. Gross Weight

Gross weight per unit of weight. The weight relates to the unit that you specify in the "Unit of weight" field later in this view. The gross weight and its unit always relate to the base unit of measure.

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14. Unit of weight

Unit referring to a weight of the material. The weight can, for example, be the gross weight, net weight, or allowed packaging weight. If you specify a weight, you must enter the corresponding unit of weight here. The unit of weight is a required field in the "Sales" view since it is copied to sales orders for the material. You cannot change it in the sales order. Examples:

G Gram

KG Kilogram

TON Tonne

15. Volume

Space that the material occupies per unit of volume. The volume refers to the unit specified in the "Volume unit" field to be entered after this field. The volume and its unit always refer to the base unit of measure.

16. Volume unit

The unit that refers to the volume of a material. The volume can be the gross volume, the net volume or the allowed packing volume, for example. If you specify a volume, you have to enter the corresponding volume unit. Example:

CDM Cubic decimeter

HL Hectoliter

L Liter

M3 Cubic meter

17. Size/dimensions

Text field that you can use as you like, for example, to record the size or dimensions of the material. The data you enter is merely for information and is not used by the system. Always enter here the unit in which the dimensions are measured.

18. EAN/UPC

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International Article Number/Universal Product Internationally standardized number that uniquely identifies a material. This number always refers to a particular unit of measure or type of packaging. The EAN (International Article Number) is generally assigned by the manufacturer of the material. In this case, the EAN also identifies the manufacturer uniquely.

At Company we have internal material number assignment, you have to enter the number category but no EAN.

19. EAN category

Defines how the system determines an International Article Number (EAN) to be assigned internally, and which check criteria (check digit, prefix, and so on) an EAN of this category must fulfil At Company we assign material numbers internally (automatically by the system) and therefore you want the system to assign the EAN (internal assignment). In this case you enter an EAN category, but leave the EAN field blank. If both the EAN field and the EAN category field contain values, the system assumes that you want to enter the EAN externally and that you have possibly entered an incorrect EAN category. Example:

HE Manufacturer EAN codes

HK Manufacturer short EAN codes

IC ITF codes

20. No link

Status field for linking to documents in documentation management. Whether selected or not, the field indicates:

• Either that no drawings/documents in the document management system (DMS) are assigned to the material

• or that several drawings/documents in the document management system are assigned to the material

21. Document

Document number (without document management system) Number of the drawing that exists for this object. Together with the document version, the

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document number is used as information for technical services. It is displayed in various lists.

22. Document type

Document type (without Document Management system). Subdivides the documents into groups that are subject to the same organizational processes. Together with the document number and the document version, the document type represents the key for document management. It is the main criterion for controlling document management. The document type controls field selection and the available statuses for a document info record.

23. Doc. vers.

Version number of an in-house technical document for this object.

24. Page number

Page number of document (without Document Management system) Number of the page in the document on which the material can be found.

25. Doc. ch. no.

Number that indicates the change status of the drawing. The SAP document management system is not active in this case.

26. Page format

Page format of document

27. No. sheets

Number of pages that the technical document contains.

28. Gen. Confble matl

Alphanumeric key uniquely identifying the configurable material. The general configurable material is valid for the whole client. A configurable material is a material for which different variants are possible, for example different paintwork

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types. The BOM of a configurable material contains all components that are used in at least one of the variants.

29. Variant

Material is a variant. This indicator specifies whether the current material has been defined as a variant by configuration value assignment for the configurable material.

30. Material is configurable

This field determines whether a material is configurable. If this indicator is set, you can assign a variant class to the material, allowing it to be used as a configurable material.

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4.3.6 CLASS TYPE

Select 001 Material class

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4.3.7 GENERAL CLASSIFICATION

1 2 3 4

1. Class

In the Class column on the second Classification screen, you enter all the classes to which you want the material to be assigned. The system supplies the entries for the Class description and Status columns automatically on the basis of the classes you have chosen. If the material is assigned to more than one class, you must specify which class is to be the standard class in the Std class column.

2. Class description

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Language-dependent description of a class. The system supplies the entry for the Class description column automatically on the basis of the classes you have chosen

3. Status

Classification status. Defines whether the allocation is released for class search or locked. If the allocation is locked, the object is not shown in the search result, or is shown with a special indicator. The system supplies the entries for the Status columns automatically on the basis of the classes you have chosen.

4. Std class

If the material is assigned to more than one class, you must specify which class is to be the standard class in the Std class column. If the indicator is selected, that class is identified as the standard class. A standard class allows you to access all the information on classification and characteristics for an object when you use the object, without having to select one of the classes it is assigned to.

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4.3.8 GENERAL PURCHASING DATA

2 1

3 4

5 6

7 8

9

10 11

13

14 12

15 16

17 18

20 19

21

22

23

24

25

26 27

28

29

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1. Base unit of measure This information is mandatory and identical for all departments. The unit of

measure in which stocks of the material are managed. The system converts all the quantities you enter in other units of measure (alternative units of measure) to the base unit of measure.

2. Order unit Unit of measure in which the material is ordered. Maintain this field only if you want

to use a unit of measure that differs from the base unit. If the field is not filled, the system will assume that the unit of measure is the base unit.

3. Purchasing group Key for a buyer or a group of buyers, who is/are responsible for certain purchasing

activities. Internally, the purchasing group is responsible for the procurement of a material or a

class of materials. Externally, it is the medium through which contacts with the vendor are maintained.

Any value that you enter in this field will appear in each item as the default value.

4. Material group Key that you can use to group together several materials or services with the same

attributes, and to assign them to a particular material group. You can use material groups to:

• Restrict the amount of data considered in analyses

• Systematically search for material master records via matchcodes

5. MM/PP status You can use the material status from the materials management/production

planning view to restrict the usability of the material for certain activities. The material status defines

• in what neighbouring application areas (such as purchasing, material requirements planning, bills of material, and so on) the material may be used.

• the type of message the system issues if the material is used in these application areas.

Example:

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01 Blocked for procmnt/whse 03 Blocked for procmnt 02 Blocked for BOM/Task list 04 Blocked for Warehouse

6. Variable order unit You set this indicator to activate variable order unit processing. This means that the

order unit you specify in a purchase order may differ from the one given in the purchasing info record. The indicator also determines whether it is possible to work with conditions for each order unit.

Not active 1 Active 2 Active with own price

7. Tax indicator Tax indicator for the material. The tax indicator is used in the automatic

determination of the tax code in Purchasing. If you have taxable materials and materials that are not subject to tax, you can define two tax indicators with the aid of which different tax codes can be determined. For example:

0 No tax 1 Full tax

8. Autom. PO If this indicator: is selected, it specifying that purchase orders are generated

automatically when requisitions are converted (that is to say, the POs are not displayed on the screen for the user to explicitly save).

9. Batch management Indicator specifying whether the material is managed in batches.

10. Purchasing value key You specify reminder and tolerance data, shipping instructions, and order

acknowledgement requirement using the purchasing value key. After you have entered a key, the system fills the fields with the values defined in Customizing.

11. Shipping instructs. Key denoting the packaging and shipping instructions issued to the vendor.

12. Reminder 1-3

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Number of days representing the time interval at which reminders or urging letters/messages are sent to the vendor.

13. Underdel. tolerance Percentage (based on the order quantity) up to which an under-delivery of this item

will be accepted The system suggests this value when a purchasing info record is created. If no purchasing info record exists, the system also adopts this value into the purchase order, contract, or scheduling agreement.

14. Overdeliv. Tolerance Percentage (based on the order quantity) up to which an over-delivery of this item

will be accepted. The system suggests this value when a purchasing info record is created. If no info record exists, the system also adopts this value in the purchase order, contract, or scheduling agreement.

15. Unltd over-delivery Indicator that specifies whether unlimited over-delivery can be accepted for the

item.

16. Acknowledgement reqd. Determines whether the purchasing document (purchase order, outline agreement,

etc.) is to be acknowledged by the vendor.

17. GR processing time Goods receipt processing time in days. Number of workdays required after receipt

of the material for its inspection and placement into storage.

18. Quality inspection Indicator that specifies whether the material is subject to quality inspection, and

whether a goods receipt is posted to stock in quality inspection

19. Critical part Indicator specifying whether the material is a critical, that is, particularly important

part. This indicator is purely for information.

20. Source list

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Indicator specifying that the source list must have been maintained in the case of external procurement for a certain plant. If the indicator for a plant has been set, a source of supply must be entered in the source list before a purchase order can be created for issue to the source for the plant.

21. Quota arr. Usage Key that specifies which business functions use a quota arrangement. The entry

you make here controls how the total order quantity is calculated in the quota arrangement, and thus which source of supply is determined for the material at a particular point in time. You can enter a quota arrangement for the following field combinations:

Q Purchase Order Sloc PlOr Preq MRP Ord 1 X X 2 X X X X 3 X X X X X

22. Commodity code Official key corresponding to the EC harmonized system for the description and

coding of merchandise.

23. Country of orig Key of the material's country of origin. This information is used for export

declarations.

24. Region of origin Describes more precisely the origin of goods during an export or import transaction.

You can enter a region of the country from which the goods originate. This information is required for the declarations regarding imports and exports which are made to the authorities (for example, Intrastat in the European Union and the shipper's export declaration in the USA).

25. Export/import group A grouping of materials with similar export requirements.

26. Exemption Certificate ID of cert. stipulating that no imp./exp. license is required. Set the indicator A if a certificate has been applied for which stipulates that the

material does not require a license for import or export. Set the indicator B if a certificate exists which stipulates that the material does not

require a license for import or export. In addition, enter the number and issuing date of the certificate in the respective fields.

Set the indicator C if the application for a certificate has been rejected for this material.

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Leave the field blank if the material requires an import or export license.

27. No of certificate No. of cert. stipulating no export/import license. Enter the number assigned by the

authorities to the certificate which stipulates that no import or export license is required for the material.

28. Issue dat of cert. Issue date of exemption certificate in export/import. Enter the issuing date of the

certificate which stipulates that no export or import license is required.

29. Military good Indicates whether a material is a military goods.

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4.3.9 GENERAL PURCHASE ORDER TEXT

1 2 3

4

1. Language Language key. The language key indicates the language used to:

• Display texts

• Enter texts

• Create printouts The language key here refers to the purchase order text.

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2. Long Text Text that describes the object to which it refers in greater detail than the description

or short text. It may extend over several lines.

3. More long texts exist Indicates that more texts of this text type exist in different languages than are

displayed here.

4. More text Indicator specifying that the text is longer than the lines displayed on the screen.

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4.3.10 MRP 1

4

4

1

2

3

6

7

8

9

10

11

12 17

18

19

20

21

13

14

15

16

22

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27

28

29

30

33

34 31

32

35

36

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39

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1. Base Unit of measure

Unit of measure in which stocks of the material are managed. The system converts all the quantities you enter in other units of measure to the base unit of measure. In inventory management, the base unit of measure is the same as stock-keeping unit. The base unit of measure should be the unit which satisfies the need for the highest level of detail.

Base units of Measure available in Company Company System are for example: EA Each H Hour KG Kilogram TON TONNE 2. Purchasing group In this field, you must select a code allocated to a buyer or for a group of buyers

who/which is responsible for purchasing the material. As a result, during a planning run, order proposals for externally procured materials can immediately be allocated to the appropriate purchasing group.

Internally, the purchasing group is responsible for the procurement of a material or a class of materials.

Externally, it is the medium through which contacts with the vendor are maintained.

3. ABC indicator The system classifies a material as an A, B, or C part according to its

consumption or usage. This classification process is known as the ABC analysis. The three indicators have the following meanings:

Symbol Meaning A Very important material according to ABC analysis B Fairly important material according to ABC analysis C Less important material according to ABC analysis

4. MM/PP status By allocating a material status from the view of materials management and

production planning, you determine for which business transactions a material is used. If a material is not provided for a certain transaction, you specify whether a warning or an error message appears with this status.

Statuses available in the Company Company System are:

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Code Status

01 Blocked for procmnt/whse

02 Blocked for BOM/Task list

03 Blocked for procmnt

04 Blocked for Warehouse If you want certain movements not to happen on a specific material master record,

you block it for that function. Example: 01 blocks a material master record from any issuing, buying, reserving or receiving; 03 blocks a material master record from buying, however, the warehouse can still

receive or issue.

5. Mrp group The MRP group, groups together materials from the planning point of view for

allocating special control parameters for the planning run. The MRP group is defined in Customizing where it is also provided with the control parameters.

These control parameters include, for example, the strategy group, the consumption mode, and the planning horizon and creation indicator.

MRP Groups available in Company Company System:

Abbreviation Description

A General

NSTK Non Stock

PLAN Planned Materials

PPE Safety Clothing

REPA Repairables

ROTA Rotables

UNPL No Planning

REPA and ROTA groups’ results are generated into planned orders.

6. Mrp type MRP type determine the MRP procedure in the material master record according to

which the material is to be planned.

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MRP types available in Company Company System are for example:

MRP Type Meaning

ND No Planning

PD Material requirements planning

VB Manual reorder point planning

The following table explain mandatory, optional & no entry required fields needed for MRP type:

+ : Required

* : Optional

- : No entry required

MRP Type VB VM VV PD

Safety Stock * * * *

Reorder Level + + - -

Forecast data * + + *

Period indicator * + + *

Fiscal year variant * + + *

Service level - * * *

Splitting indicator - - * *

7. Reorder point / Level If the stock falls below this quantity, the system flags the material for materials

planning by creating a planning file entry (requisition).

The reorder point / level is only relevant for reorder point planning. In automatic reorder point planning, the system calculates the reorder level during forecasting. If a material master record is recreated, the reorder point / level must always be entered manually even if it is overwritten again by the system as is the case in automatic reorder point planning. It is thus possible to plan a material even if no forecast has yet been carried out for it.

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If you enter a reorder point / level for time-phased planning, the system uses a mixture of the two planning procedures, reorder point planning and time-phased planning: materials that are planned using time-phased planning are not only included in the planning run on the MRP date, but they are also replanned if material stock falls below the reorder point / level due to a goods issue.

8. Planning cycle Key that determines on which days the material is to be planned and ordered. If a

vendor always delivers a material on certain days of the week, it makes sense to carry out the planning run according to the same cycle, but displaced by the delivery time. The planning cycle is a planning calendar that is defined when Customizing MRP.

9. Planning time fence The planning time fence specifies a period within which no automatic changes are

to be made to the master plan. The planning time fence is maintained in workdays. It is only used for materials that are planned using an MRP type which includes a firming type. The firming type determines how order proposals are to be created or scheduled within the planning time fence.

10. Mrp controller In this field, you must enter a number for a single MRP controller or for a group of

MRP controllers who/which is responsible for the planning of a material.

MRP Controllers within Company Company System are for example:

Department controllers

150 C/HOUSE PRODUCTION

110 MAINT AUTOMATION

133 MAINT CARBON A/ROD

161 MAINT LOGISTICS

106 SERVICES (DIEN)

101 General

11. Lot size key

Key that determines which lot-sizing procedure the system uses within materials planning to calculate the quantity to be procured or produced. Lot sizing procedure is the procedure used to calculate the order and production quantities.

It is material requirements planning's role to generate an order proposal if a requirements shortage is determined during a planning run. The lot size for the

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order proposal is specified according to the lot-sizing procedure you entered in the material master record.

The available lot-sizing procedures are divided into three groups:

• Static lot-sizing procedures In static lot-sizing procedures, the lot size is calculated by means of the

quantity specifications recorded in the material master record. There are three different criteria according to which the lot size can be calculated:

− Lot-for-Lot Order Quantity If you have specified that the exact lot size is to be used, the system

uses the exact shortage quantity (requirement minus available warehouse stock) as the order quantity in the case of a material shortfall.

− Fixed Lot Size It makes sense to select the fixed lot size for a material if it is only

delivered, for example, in pallets of a certain quantity or in tanks of a certain size.

Where you have specified that the fixed lot size is to be used, the

system will use the fixed order quantity recorded in the material master record as the order quantity in the case of a material shortage. If this order quantity is not sufficient to cover the shortage then several lots (of the fixed lot size) are planned for the same date until the shortage has been covered.

− Replenishment up to Maximum Stock Level Where you have specified that the lot size, "replenishment up to

maximum stock level" is to be used then the lot size used by the system is the difference between available warehouse stock and the maximum stock level defined in the material master record.

• Period Lot-Sizing Procedures In period lot-sizing procedures, the requirement quantities from one or from

several periods are grouped together to form a lot. The SAP System supports various periods. You can determine the number of periods which are to be grouped together into an order proposal. You have the choice between:

− Daily Lot Size

− Weekly Lot Size

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If requisitions are in the system for more than a week, they are grouped into one requisition.

− Monthly Lot Size If requisitions are in the system for more than a month, they are

grouped into one requisition. This is done to prevent that the buyer does not receive a lot of requisitions for the same material.

− Lot size according to flexible period lengths, depending on accounting periods (period lot size)

Lot size keys available in Company Company System are for example:

Abbreviation Description

EX Lot-for lot order quantity

HB Replenish up to maximum stock level

MB Monthly lot size

WB Weekly lot size

Order policy combinations:

MRP Type Lot Size Key Description

VB HB Manual Reorder Point with Maximum Stock Level Lot size key

VB FX Manual Reorder Point with Fixed Lot size key

VM HB Automatic Reorder Point with max Stock Level Lot size key

PD WB//MB/TB/PB/PK Order on Demand with Period Lot size key

VM FX Automatic Reorder Point with Fixed Lot size key

PD EX Order on Demand Lot-for-Lot Lot size key

PD FX Order on Demand with Fixed Lot size key

ND No Planning

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12. Rounding Profile You use the rounding profile to instruct the system to adjust the order quantity to a

deliverable unit. You can enter a rounding profile in the material master record. This profile is used by the system to calculate the order proposal in the planning run. The rounding profile is defined in Customizing.

For example a material's base unit of measure is 1 unit; the purchase order is to be delivered in boxes (1 box corresponds to 5 units) You maintain the profile as follows:

From a requirements of 2 units, the system is to round up to 5; from a requirement of 32 units, the system is to round up to 35.

13. Minimum lot size By setting a minimum lot size, you are instructing the system (during lot-size

calculation) to create an order proposal for at least the amount which is specified here even if a smaller quantity would have been sufficient.

14. Fixed lot size By entering a fixed lot size, you are instructing the system to create order proposals

for the amount of the fixed lot size specified here. It only makes sense to use the fixed lot size if you selected either the "fixed lot-sizing procedure" or the "fixed lot size with splitting/overlapping".

15. Ordering costs Costs that are incurred, irrespective of lot size, for each purchase order or

production order over and above the actual purchase order price or production costs.

The ordering costs increase as the number of orders placed increases. They include costs related to the clerical work of preparing, releasing, monitoring, and receiving orders, the physical handling of goods, inspections, and setup costs, as applicable. Ordering costs must be specified in the currency of the company code belonging to the plant.

16. Assembly scrap (%) Scrap in percent that arises during production of the material if the material is an

assembly. The assembly scrap is used in materials planning for calculating the lot size of the assembly, the system increasing the quantity to be produced by the calculated scrap quantity.

Example

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Qty to be produced 200 pieces Assembly scrap 10% Scrap quantity 20 pieces

220 pieces are produced

17. Rounding value By entering a rounding value, you are instructing the system to round up the receipt

quantity to a multiple of the value specified here. PR and Order proposal’s will be ordered in multiples of the rounding profile.

18. Maximum lot size By entering a maximum lot size, you can determine that during the lot-size

calculation, the system will not exceed the quantity specified here for order proposals.

19. Maximum stock level In this case, the system will create an order proposal for the amount that results

from subtracting the available stock from the maximum stock level during the lot-sizing procedure. This is the quantity of the material in the plant that may not be exceeded. You must enter a value if you have chosen "Replenish to maximum stock level" as the lot-sizing procedure.(VBHB)

20. Storage costs ind. This indicator the storage costs percentage the system uses when calculating the

lot size to determine storage costs. The storage costs percentage is based on the quantity stored and the unit price, and refers to the average value of the materials stored. The percentage is considered constant for the stocking-up period. It normally lies between 15 and 35%. The storage costs percentage is used by optimizing lot-sizing procedures to calculate the lot size, but not for any other purpose.

21. Cycle time If you select the lot-sizing procedure, "fixed lot size with splitting and overlapping",

then you must also enter a cycle time. The cycle time specifies the time interval in which the planned orders, which are created using this lot-sizing procedure, may overlap.

If a requirement quantity (for example, for capacity reasons) cannot be procured in a single lot, you have to schedule several receipts. In conjunction with the overlap

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indicator in the lot size (set in Customizing for the lot size), you can use the cycle time to specify that these receipts are offset in time, that is, that they are delayed by the cycle time. You enter the cycle time in workdays. The system uses the cycle time if a requirement is covered by several receipt elements due to restrictions on lot size such as maximum lot size (with all lot-sizing procedures) or rounding value (with fixed lot size with splitting).

22. Procurement type The procurement type is automatically suggested by the system depending on the

material type. However, you can overwrite the default value. A material can be produced in-house, it can be externally procured or it can be partly produced in-house and partly procured externally. If both procurement types are possible for a material but you only want to specify one, then you must enter the appropriate indicator here.

Available procurement types within the Company Company System:

ProcType Description E In-house production F External procurement No procurement X Both procurement types

23. Special procurement Entering a special procurement type makes it possible for you to specify the

procurement type "in-house production" or "external procurement" more exactly. For example, setting this indicator would make it possible for you to determine that an externally procured material should be procured via consignment orders.

Special Procurement type available in Company Company System:

SpP Long Text

01 External procurement by consignment

24. Quota arr. usage If a material is obtained from various sources of supply, the individual sources of

supply can be provided with a quota arrangement. The quota arrangement applies to a certain period and specifies how the receipts should be distributed amongst each source of supply. Sources of supply include, for example, in-house production or external procurement, other plants as well as individual vendors and outline agreements.

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With this indicator, you can determine whether a material should participate in the quota arrangement and which transactions/events result in a quota arrangement. This means that you can determine, for example, that only purchase orders take part in quota arrangements or that order proposals, created by requirements planning take part in quota arrangements.

The entry you make here controls how the total order quantity is calculated in the quota arrangement, and thus which source of supply is determined for the material at a particular point in time. The quota arrangement mechanism is also used in materials planning; that is, the planned orders and purchase requisitions created by materials planning are included in the quota arrangement.

Quota arrangements available in Company Company System:

Q PO DIS PIOr PReq MRP Ord

1 X X

2 X X X X

3 X X X X X

25. Backflush

By selecting this field you indicate an automatic goods issue for components some time after their actual physical issue for use in an order.

Each material component is assigned to an operation (maintenance task list or work order) in the production order. If a material component is backflushed, the system posts the withdrawal only upon confirmation (part of order monitoring) of the operation. The withdrawal is then posted automatically.

26. Bulk material This indicator defines a BOM item as a bulk material, which is available directly at

the work center (for example, washers or grease). Since bulk materials are only used in small quantities of low value, they are neither subject to MRP nor costed for an order. This indicator is only supported for items that are relevant to production and plant maintenance. This indicator is not supported for items that are relevant to costing. You cannot enter an issue location for a bulk material.

27. Enter batch This indicator determines whether, when, and how the batch for the components

has to be entered in the production order/process order.

28. Issue stge location

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This is the number of the storage location that is copied to the planned order, production order, or run schedule quantity:

• If the material is a component, this is the issuing storage location to which any backflushing is posted.

• If the material is produced, this is the receiving storage location to which the receipt of the material is posted.

29. Ext. procurement sloc Key of the storage location that, in materials planning, is proposed in the purchase

requisition for subsequent storage of the material.

30. Withdr. seq. group Determines the sequence used by the system to withdraw material stocks. The

withdrawal sequence group can refer to a pipeline material, vendor consignment stock, or to unrestricted-use stock. You use this key, for example, to determine that for a goods issue, the system should first try to withdraw stock from the pipeline. If no pipeline info record is available, the system should then try to withdraw stock from the vendor consignment stock. If no vendor consignment data exists, the system should then withdraw from the unrestricted-use stock.

31. Gr processing time The goods receipt processing time specifies the time required to inspect the

material and to transfer it to stock. It represents the time span (in workdays) between the receipt of the goods and the inward stock movement. The system also takes goods receipt processing time into account during scheduling.

32. Sched. margin key The scheduling margin key is used to allocate floats to the material for calculating

basic dates and for carrying out lead time scheduling for the planned order - for materials that are produced in-house. The float is the opening period for determining basic dates and the float before production and the float after production for lead time scheduling. You maintain the floats in Customizing and they are calculated in workdays.

33. Plnd delivery time The planned delivery time determines the time required to obtain a material by

means of external procurement. You must only enter the planned delivery time if the material is externally procured. The status lead time is equal to planned delivery time plus goods receipt processing time plus procurement lead time.

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34. Planning calendar You use the PPC planning calendar to specify flexible period lengths for master

planning and material requirements planning. Flexible periods can be specified for a period lot-sizing procedure for master

production scheduling and material requirements planning. The system groups together the order proposals, created in the period defined in the planning calendar into one lot. You allocate this special lot-sizing procedure to the material in the material master record together with the planning calendar.

35. Safety stock The safety stock is used to prevent material shortfalls during the stocking-up period

which may occur if consumption is unexpectedly high or if delivery dates are not kept. You have the choice between manually determining the safety stock or letting the system automatically determine it for you when carrying out the forecast. Safety stock forms a part of the reorder level and is not included in requirements planning.

With manual reorder point planning, you can enter a value in the material master record. However, it is merely for information With automatic reorder point planning and forecast-based planning, the system determines and adjusts the value automatically for forecasting purposes.

36. Coverage profile The range of coverage profile contains the parameters for calculating the dynamic

safety stock. The dynamic safety stock is calculated depending on the requirements within a specified period and the range of coverage. The range of coverage profiles (period length for calculating the average consumption, range of coverage, and so on) are maintained in Customizing in the MRP screen.

37. Safety time ind. You use this indicator to switch on the safety time for a material in MRP. If you

define a safety time, the requirements in MRP are brought forward on the time axis by the number of workdays you define here. Using this indicator you can activate the safety time and you can set whether all requirements or only independent requirements (sales order, planned independent requirements, and so on) are to be brought forward. The actual requirements dates are not changed.

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38. Service level (%)

If the safety stock level is to be calculated by the system then you must specify a service level. This level indicates the percentage of existing requirements which is to be covered by warehouse stock. The higher you specify the service level, the higher the system will calculate the safety stock level in order to compensate for additional consumption or delays in delivery. Safety stock is calculated during the forecast run. Since the system has the tendency to generate fractions, it should be used in conjunction with rounding values.

39. Safety time In this field, you set the number of days for the safety time. By entering a safety time, the system brings forward the requirements date in the planning run by the number of workdays specified here. The actual requirements dates are not changed in the process.

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4.3.11 MRP 2

1 3

2

4

5

6

7

8

9

10

11

12 13

14

15

16

17

18

19

20

22 21

23

1. Period indicator

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The period indicator specifies the time period for which the system is to store historical or forecast values. You can define the period indicator when maintaining the MRP parameters as well as when you are maintaining the forecast parameters.

2. Splitting indicator

If you specify a splitting indicator, the system will only take a certain number of periods into account for requirements planning and it will also split them into smaller time periods (as long as the period indicator is not set to daily quantities). The splitting indicator is irrelevant for reorder point planning.

3. Fiscal year variant The fiscal year variant is used to define the fiscal year.

4. Strategy group The strategy group groups all the planning strategies that can be used for a particular

material. The planning strategy represents the procedure used for planning a material and is (technically speaking) controlled by the MRP types. Planning strategies and strategy groups are defined in Customizing for demand management.

5. Consumption mode The consumption mode controls the direction on the time axis in which the system

consumes requirements. In backward consumption, sales orders, dependent requirements or material reservations consume planned independent requirements that lie before the requirements date. In forward consumption, sales orders, dependent requirements, or material reservations consume planned independent requirements that lie after the requirements date.

6. Consumpt. per. forwd Determines the consumption period (in workdays) for forward consumption. In forward

consumption, sales orders, dependent requirements or material reservations consume planned independent requirements that lie within the consumption period after the requirements date. The consumption period is specified in days and is valid from the current date. Enter a period between 1 and 999 days

7. Planning material Material number whose planned independent requirements the system uses to

consume the sales order of the material in question if you use the planning strategy, "planning with planning material". The strategy, "planning with planning material" is used if the BOM of a finished product contains variable and non-variant parts. The non-variant parts can be planned using the planning material.

You maintain planned independent requirements for the planning material entered here. If a sales order/customer requirement is posted for the material in question, the sales order quantity consumes the planned independent requirements of the planning

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material. The planning material is not actually produced itself. It is only used for planning non-variant parts and for consuming the planned independent requirements.

8. Plng conv. factor

Factor that the system uses to convert the quantity of the current material, measured in the base unit of measure, to the base unit quantity of the planning material. You either enter a factor or the system determines one as follows:

• The system checks the alternative units of measure maintained for the planning material. If an alternative unit is the same as the base unit of the current material, the conversion factor is proposed immediately. Otherwise, the system continues with point 2.

• The system attempts to find a conversion factor using the standard units of measure table. If it finds one, it proposes this value. Otherwise, it continues with point 3.

• The system proposes "1" as the conversion factor.

9. Consumpt. per bckwd Determines the consumption period (in workdays) for backward consumption. Using

backward consumption, sales orders, dependent requirements, or material reservations are assigned to and consume planned independent requirement quantities which lie within the consumption period and before the requirements date. The consumption period is specified in days and is valid from the current date. Enter a period between 1 and 999 days.

10. Mixed Mrp You use this indicator to provide the material for special planning types:

• To carry out assembly planning for a material, the respective indicator must be set here.

• To carry out gross requirements planning or dual planning for a material, the respective indicator must be set here.

11. Planning plant Key which specifically identifies the plant from which the planned independent

requirements of the reference material comes from. You maintain planned independent requirements for the planning material entered here. If a sales order/customer requirement is posted for the material in question, the sales order

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quantity consumes the planned independent requirements of the planning material. The planning material is not actually produced itself. If is only used for planning non-variant parts and for consuming the planned independent requirements.

12. Availability check With this indicator, you determine whether sales orders result in individual or collective

requirements for requirements planning and also how the availability check for a material is carried out by the system. This indicator also controls:

• Whether the system creates individual or collective requirements when you create sales orders for this material

• Which MRP elements (for example, purchase orders, or reservations) the system should take into account for the availability check

• Whether the availability check should not be carried out until the end of the replenishment lead time or whether it should be carried out for the entire period in which MRP elements exist

Availability checks available in the Company Company System are for example:

01 Daily

02 Individual reqmt.

CH Batches

KP No check

13. Tot. repl. lead time Time that is needed for the complete production and procurement of a finished product

or an assembly. This value is an estimate value and is used for the availability check. Since individual components can be produced in-house or procured externally at the

same time, the total replenishment lead time is the sum of in-house production time(s) and/or planned delivery time(s) of the longest production path.

14. Alternative bom

Indicator that controls the selection of the alternative BOM when requirements are exploded in materials planning.

• If you choose "Selection by order quantity", the system will use the alternative BOM into whose lot size range the order quantity falls. What counts here is the lot size range and area of validity of the BOM.

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• If you choose "Selection by explosion date", the system will use the alternative BOM into whose area of validity the date falls according to the relevant table in the Implementation Guide for Materials Planning.

• If you choose "Selection by production version", the system will use the alternative BOM that is stored in the valid production version. In this case, the lot size range and area of validity of the production version apply.

15. Individ./collective This indicator controls whether individual customer requirements planning is allowed for

dependent requirements. In the MRP procedure, dependent requirements are automatically created for the components which are necessary for the production of a planned order.

• The individual requirements indicator causes the system to state required quantities of the dependent material individually if individual requirements are planned at a higher level.

• The collective requirements indicator causes the system to group together required quantities for the respective dependent material.

16. Component scrap (%)

Component scrap is used in material requirements planning to determine what input quantities of components are required. As part of BOM explosion, the system increases the input quantities of the components by the calculated scrap quantity.

Example:

Input quantity 200 pieces

Component scrap 10 %

Scrap quantity 20 pieces

> Therefore 220 pieces are required.

17. Group requirements

Indicator that specifies whether you want the system to group together dependent requirements (components automatically created for the production of a planned order) for the material on a daily basis when analyzing requirements planning. If you set this indicator, the display in the MRP list and in the stock/requirements list will be preset as follows:

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If several dependent requirements are scheduled on one day, they will be grouped together in one line. This line shows how many dependent requirements have been grouped together.

In the Company Company system the requirements will be summarized in daily requirements if the indicator is selected.

18. Discontinuation ind.

Indicator that identifies the material as a material/part to be discontinued and controls the discontinuation process in materials planning. If the indicator is set, it causes the system to transfer dependent requirements to the follow-up material if the dependent requirements are no longer covered by warehouse stocks.

• A single/parallel component to be discontinued is replaced with a follow-up component at a particular date. In the material master record of the component to be discontinued, you must set discontinuation indicator 1, enter a follow-up component, and specify an effective-out date.

• A dependent discontinued group of materials is replaced with a group of materials; that is, if one component is to be discontinued (the main component), another component must also be discontinued (the subordinate component). In the material master record of the main component to be discontinued, you must set discontinuation indicator 1, enter a follow-up component, and specify an effective-out date. In the material master record of the subordinate component, you must set discontinuation indicator 3.

19. Follow-up material This is the number of the material that the system uses in materials planning to replace

the material to be discontinued once its warehouse stock is depleted. In the material master record and also in the bill of material (BOM), you can define a follow-up material for a material to be discontinued. The follow-up material determined in the BOM has a higher priority than in the material master record.

20. Effective-out date Date from which the stocks of the material are to be used up. As soon as no more stock

exists for this material, it is to be replaced by the follow-up material. From this date, the system reassigns the dependent requirements that are no longer covered by warehouse stock of the discontinued material to the follow-up material. This is done as part of material requirements planning.

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21. Repetitive mfg By selecting this indicator the material is authorized to be used in repetitive production

for production planning and control. If you set this indicator, you must also specify a repetitive manufacturing profile for this material.

22. Repet. mfg profile

Key that uniquely identifies the repetitive manufacturing profile. The repetitive manufacturing profile uses the order type to control whether the system creates run schedule headers with partial orders (technically speaking, planned orders) or with cost collectors. The repetitive manufacturing profile also determines:

• How the system deals with activities when backflushing

• Which movement type is used to post goods receipts and goods issues

• How planned order and run schedule quantities are reduced in the backflush transaction

• How BOM corrections are made - if errors should occur when posting quantities to be backflushed

23. Action control

This key is used for the function "Actions in the planned order" and defines the sequence of the actions that can be carried out for the planned order. Using the function, "actions in the planned order", an interface is provided to external assembly control systems. Thus, work progress on the assembly line as well as activities independent of the assembly line can be transferred to the SAP System via a standard interface or a customized interface.

Using this function, one or more actions can be carried out for a large number of planned orders in one step that, if carried out online, can only be carried out individually per planned order. Moreover, it is possible to carry out customer-specific actions. In Customizing for MRP, you use the action control to define which actions are allowed and the sequence in which they are to be carried out.

An action may be, for example:

• Explode BOM

• Check material availability

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• Schedule planned order, etc.

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4.3.12 FORECASTING

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1. Base unit of measure Unit of measure in which stocks of the material are managed. The system converts

all the quantities you enter in other units of measure to base unit of measure. In inventory management, the base unit of measure is the same as stock-keeping unit. The base unit of measure should be the unit which satisfies the need for the highest level of detail.

If the base unit of measure is incorrect, you cannot receive or invoice materials. For example, if the base unit of measure in the material master record is each and the supplier delivered boxes, the goods cannot be received or billed.

The base unit of measure often coincides with lot size data, i.e. if material is delivered in a pack of three, the base unit will be the minimum lot size.

Base units of Measure available in Company Company System are: EA Each

H Hour

KG Kilogram

TO TONNE

2. Forecast model When a series of consumption values are analysed, certain patterns can usually be

detected. From these patterns it is then possible to differentiate between various forecast models:

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Constant model

Trend model

Seasonal model

Seasonal trend model

• A constant consumption flow applies if consumption values vary very little from a stable mean value.

• With a trend model, consumption values fall or rise constantly over a long period of time with only occasional deviations.

• If periodically recurring peak or low values which differ significantly from a stable mean value are observed, it is a case of a seasonal consumption flow.

• A seasonal trend consumption model is characterized by a continual increase or decrease of the mean value.

If none of the above patterns can be detected in a series of past consumption values, then we have an irregular consumption flow.

Forecast models available in the Company Company system are: D Constant model K Constant with smoothing factor adjustment T Trend model S Seasonal model

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X Seasonal trend model N No forecast/external model G Moving average W Weight moving average No forecast/no external model O 2nd order trend with adjustment of smoothing factor B nd order trend J Automatic model selection

3. Last Forecast Date on which the system carried out the last forecast.

4. RefMatl:consumption If you define a reference material, the system accesses the historical data of the

reference material up to the specified validity date. This makes sense, if no historical data exists yet for the specified material.

5. Date to During the forecast, the system accesses the historical data of the reference

material up to the specified validity date. From this date, it uses the material's own historical data.

6. Period Indicator The period indicator determines the time interval the system is to use to store

consumption or forecast values. You can define the period indicator when maintaining the MRP parameters as well as when maintaining the forecast parameters.

7. Fiscal Year variant The fiscal year variant is used to define the fiscal year.

8. RefPlant:consumption If you enter a reference material for consumption, you must also define a reference

plant where the historical data to be used comes from.

9. Multiplier Determines how much of the consumption quantity of the reference material should

be used for the material forecast.

• If you want exactly 100 % of the consumption quantity of the reference material to be used for the forecast of this material, enter 1.

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• If you want only 70 % of the consumption quantity of the reference material to be used for the forecast of this material, enter 0,7.

10. Historical values You specify the number of historical value periods the system should take into

account for the forecast by filling in this field. The default value in this case is the maximum number possible (60). If fewer values are available, then they are used for initialization.

11. Initialization pds You specify the number of periods the system is to use for model initialization here.

(Refer to paragraph 15 for an discussion on initialization of forecasting models). If the number of historical values are greater than the number of initialization periods, then the system will carry out an ex-post forecast for those periods which were not used for initialization. The number of periods that the system requires for initialization depends on the forecast model.

12. Periods per season Number of periods that belong to a season. You only specify a number:

• If the forecast model is a seasonal model

• If you want the system to carry out a seasonal test

13. Forecast periods The number of forecast periods specify the number of period splits for which

forecast values should be created.

14. Fixed period Number of periods for which the system will not recalculate the forecast values in

the next forecast. The fixed periods start with the initial forecast period. You enter a value:

• In order to avoid excessive fluctuations in the forecast calculation or

• Because production can no longer react to changed planning figures in the specified horizon.

15. Initialization Model initialization is the process of specifying the necessary model parameters,

such as the basic value, the trend value and the seasonal indices for the selected

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model. In each case, initialization occurs during the first forecast for a material. It must also be carried out in cases of structural interruption, that is, if the existing forecast becomes invalid.

The selection of this indicator specifies that the system should initialize a forecast model. The system also calculates the parameters that are needed for the model (such as basic value, trend value, and seasonal indices

This will be the case, for example,

• in the initial forecast

• when there are structural changes in the time series In the Company Company system the initialization can be done automatically or

manually.

16. Model selection Before the first forecast can be carried out, you must specify which forecast model

the system must use to calculate the forecast values. The basic possibilities are:

• Manual Model Selection

• Automatic Model Selection Within the Company Company system manual model selection is used. The model

mostly used is the trend requirements pattern. If you want to select a model manually, then you must first of all analyse past

consumption data to determine whether a distinct pattern or trend exists according to which you can manually select a model for the system.

• Constant requirements pattern If your past data represents a constant consumption flow, you can then

select either the constant model or the constant model with adaption of the smoothing factors. In both cases, the forecast is carried out by first-order exponential smoothing.

You have another two possibilities if your past consumption pattern is constant; either the moving average model or the weighted moving average model.

In the weighted moving average model, you can weight individual past consumption values, which means that the system will not give equal value to past data when calculating the forecast values. In so doing, you can influence the calculation so that the most recent consumption values play a more important role in the forecast than the previous periods - as is also the case in exponential smoothing.

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• Trend requirements pattern If your past consumption data represents a trend, it makes sense to select

either the trend model or the second-order exponential smoothing model. In the trend model, the system calculates the forecast values by means of the first-order exponential smoothing procedure.

In the second-order exponential smoothing models, you can choose between a model with or without parameter optimization.

• Seasonal requirements pattern If your past consumption data represents a seasonal pattern, you can specify

the seasonal model you want. The system calculates the forecast values for the seasonal model by means of first-order exponential smoothing.

• Irregular requirements pattern None of the patterns or trends mentioned in the above examples can be

recognized in an irregular consumption flow. If the system is to carry out a forecast for an irregular pattern, then it is usually advisable to select either the moving average model or the weighted moving average model.

The models available to select from in the Company Company system are: T Examine for trend S Examine for seasonal fluctuations A Examine for trend and seasonal fluctuations

17. Optimization level By determining the optimization level, you are specifying the increment with which

the system is to carry out parameter optimization (refer to paragraph 26). The lower the increment, the more exact but also the more time consuming the optimization process will be.

Optimization levels available in the Company Company system are:

F Fine (high optimization level) M Middle (middle optimization level) G Rough (low optimization level)

18. Alpha factor

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The system uses the alpha factor for smoothing the basic value (the part of forecasting that displays the past level of the forecast model). If you do not specify an alpha factor, the system will automatically use the alpha factor 0.2. This field is only applicable if the forecast model "weighted moving average" was selected.

19. Gamma factor The system uses the gamma factor for smoothing the seasonal index. If you do not

specify a gamma factor, the system will automatically use the gamma factor 0.3. This field is only applicable if the forecast model "weighted moving average" was selected.

20. Tracking limit Value that specifies the amount by which the forecast value may deviate from the

actual value. Every time a forecast is run, the system compares the tracking limit with the tracking signal, which is calculates internally. The tracking signal is the quotient of the error total and the mean absolute deviation. This comparison helps you control the accuracy of the forecast. If the tracking signal is greater than the tracking limit, the system issues an exception message asking you to check the forecast model.

21. Selection procedure This indicator specifies the selection of the optimum forecast model. Here, you can

choose between two procedures:

• The first procedure involves the system carrying out a significance test and then selecting the appropriate model.

• The second procedure involves the system determining the mean absolute deviation (MAD) using various parameter combinations for the models to be tested and then selecting the model which displays the lowest MAD. This procedure takes considerably longer than the first procedure.

In the Company Company system you should make a selection between:

• Model selection by significance test

• Analytical model selection procedure Procedure 2 is more precise but also much more time-consuming than procedure 1.

22. Weighting group You only have to maintain this field if you selected the forecast model, "weighted

moving average". This key specifies how many historical values are taken into account for the forecast and how these values are weighted in the forecast calculation.

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23. Beta factor The system uses the beta factor for smoothing the trend value. (Refer to paragraph

0) If you do not specify a beta factor, the system will automatically use the beta factor 0.1. This field is only applicable if the forecast model "weighted moving average" was selected.

24. Delta factor The system uses the delta factor for smoothing the mean absolute deviation and the

error total. If you do not specify a delta factor, the system will automatically use the delta factor 0.3. This field is only applicable if the forecast model "weighted moving average" was selected.

25. Reset automatically The selection of this indicator causes the system to reset the forecast model

automatically if the tracking limit (see paragraph 20) is exceeded. Furthermore, the system carries out a new model selection during the next forecast.

26. Param. Optimization Via this indicator, you can specify that the system is to optimize the necessary

smoothing factors for the appropriate model. The system calculates several parameter combinations and selects the one that displays the lowest MAD. Parameter optimization is carried for the initial forecast as well as for the subsequent forecasts.

27. Correction factors You set this indicator if you want the correction factors as defined in customizing to

be used in the calculation of the forecast values. The forecast basically depends on the extent and quality of the data that is

available. You only enter historical values when you create a new material master record or when the system creates a new material master record via batch input. The system then generates these values using withdrawal postings. The system recalculates the basic value and the trend value for each forecast by using the smoothing factors and the most recent consumption values. The smoothing factors are the weighting factors used for historical data, with the values from the most recent period playing a more important role in the forecast than the values from previous periods. The greater the smoothing factors you select in the material master, the faster the forecast values are adapted to the actual past consumption values.

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4.3.13 STORAGE VIEW

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Unit of measure in which stocks of the material are managed. The system converts all the quantities you enter in other units of measure to base unit of measure. In inventory management, the base unit of measure is the same as stock-keeping unit. The base unit of measure should be the unit which satisfies the need for the highest level of detail.




H Hour

KG Kilogram

TO TONNE

2. Unit of issue Unit in which the material is issued from the warehouse. In Inventory Management,

the system proposes the unit of issue for goods issues, transfer postings, other goods receipts, and reservations. Maintain this field only if you want to use a unit of measure that differs from the base unit. If the field is not filled, the system will assume that the unit of measure is the base unit.

3. Haz. Material number Number that identifies the material as a hazardous material or as dangerous goods

and assigns hazardous material data or dangerous goods data to it. The hazardous material number indicates that the material is dangerous, making special precautions necessary for its storage and shipment.

4. Temp. conditions Indicates the temperature conditions in which the material should be stored. For

example: 01 Conditioned Room 02 Max 30deg 03 Max RH 54

5. Storage condition Indicates what storage conditions are required for the material. For example:

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01 Vacuum Packed 02 Bubble Wrap 03 Grease Wrap 04 Vapour proof Wrap'g 05 Anti Static Wrap'g 06 Anti-Rust Spray 07 Wax Dip 08 Plastic Packed 09 Head Board/Full Jac.

6. Container reqmt(s) Key for the regulation that governs which type of container the material must be

stored and shipped in.

7. Number of GR slips Specifies which quantity of the material, in the unit of entry, usually constitutes a

pallet load. In the case of a goods receipt with reference to a purchase order or production order, the system automatically calculates the number of GR/GI slips to be printed for the material document item as a quotient from the goods receipt quantity and the quantity defined here. The value determined is always rounded up to the next higher whole number. If you enter nothing in this field, the material document item is only printed on one goods receipt/issue slip.

8. CC phys. Inv. Ind. Indicator specifying that the given material is subject to the cycle counting method

of inventory. The indicator also defines at which time intervals a physical inventory is to be carried out for the material.

9. CC fixed Specifies that the cycle counting indicator cannot be changed for cycle counting by

an ABC analysis. The only way to change this indicator is through manual maintenance of the material master record. Select this indicator if the material is to remain for always in the specified cycle counting category.

10. Label type

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Determines the way labels are created. The label type specifies, for example, whether labels are preprinted by the vendor or created on a central printer. If you enter a label type, you must also enter a label form in the corresponding field.

11. Label form Determines the size and layout of the label. The label form specifies, for example,

whether the label is an adhesive or a pin-on label.


13. Maximum storage Maximum amount of time for which the material may be stored.

14. Time unit Unit in which the material's maximum storage time is measured.

15. Min. re. shelf life Minimum remaining shelf life. Minimum number of days for which the material has

to keep upon receipt of the goods in order for the goods to be accepted by the system.

16. Total shelf life Total shelf life in days. Number of days for which the material will keep in total (that

is, the period from the date of production to the shelf life expiration date).

• If a value is entered in the material master record, the system assumes that the date entered upon receipt of the goods is the material's date of production. It then uses the date of production plus shelf life in days to calculate a shelf life expiration date that it updates in the batch master record and in the material document if the goods are accepted.

• If no value is entered in the material master record, the system assumes that the date entered upon receipt of the goods is the shelf life expiration date of the material; it updates this expiration date in the batch master record and in the material document if the goods are accepted.

17. Storage percentage Percentage specifying how much of the total remaining shelf life of the material

must be left if the material is sent to another plant (for example, store) by a central plant (for example, distribution center).

18. Gross weight

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Gross weight per unit of weight. The weight relates to the unit that you specify in the "Unit of weight" field. The gross weight and its unit always relate to the base unit of measure. The system can use the gross weight at a later stage, depending on what kind of capacity check you run, to check storage bin capacity for warehouse management purposes.

19. Unit of weight Unit referring to a weight of the material. The weight can, for example, be the gross

weight, net weight, or allowed packaging weight. If you specify a weight, you must enter the corresponding unit of weight here.

20. Net weight Net weight of the material expressed in the unit of weight.

21. Volume Space that the material occupies per unit of volume. The volume refers to the unit

specified in the "Volume unit" field. The volume and its unit always refer to the base unit of measure.

22. Volume unit The unit that refers to the volume of a material. The volume can be the gross

volume, the net volume or the allowed packing volume. If you specify a volume, you have to enter the corresponding volume unit.

23. Size/dimensions Text field that you can use as you like, for example, to record the size or dimensions

of the material. The data you enter is merely for information and is not used by the system.

24. Neg. stocks at plant Indicator: Allow negative stocks at plant. Specifies that negative stocks of the

material are allowed at the plant.

25. Profit center Unique key that identifies the profit center.

26. Serial no. profile Four-digit identifier that provides unique identification for a serial number profile.

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4.3.14 WAREHOUSE MANAGEMENT: THIS IS NOT IN USE AT COMPANY

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1. Base unit of measure Unit of measure in which stocks of the material are managed. The system converts

all the quantities you enter in other units of measure to base unit of measure. In inventory management, the base unit of measure is the same as stock-keeping unit. The base unit of measure should be the unit which satisfies the need for the highest level of detail.




H Hour

KG Kilogram

TO TONNE

2. Haz. Material number Number that identifies the material as a hazardous material or as dangerous goods

and assigns hazardous material data or dangerous goods data to it.

3. WM unit Unit of measure in which warehouse management manages the material. Only

maintain this field if you want to use a unit of measure that differs from the base unit of measure or the alternative units of measure. If the field remains empty, the system assumes that the unit of measure is the same as the base unit of measure.

4. Gross weight Gross weight per unit of weight. The weight relates to the unit that you specify in the

"Unit of weight" field. The gross weight and its unit always relate to the base unit of measure.

5. Unit of issue Unit in which the material is issued from the warehouse. Maintain this field only if

you want to use a unit of measure that differs from the base unit. If the field is not filled, the system will assume that the unit of measure is the base unit.

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6. Volume Space that the material occupies per unit of volume. The volume refers to the unit

specified in the "Volume unit" field.


8. Capacity usage Using this neutral capacity usage indicator for a material, you can execute a

capacity check in the Warehouse Management system (set for storage type level). You must make an entry for each procurement unit of measure.

9. LE quantity Loading equipment quantity. The system uses the loading equipment quantity in

connection with the storage unit type (SUT). Thus it can make a proposal as to how a material that needs placing into stock should be re-packed onto loading equipment.

10. Un Unit of measure for loading equipment quantity.

11. SUT Storage unit type. Key with which you can classify storage units.

12. Stock removal Storage type indicator for stock removal. Indicator determining the storage types

selected by the system when removing stock and the priority with which they are accessed. You can predefine up to ten storage types in hierarchical order. For example:

001 Raw materials (HRS) 002 Shelf goods 004 Block storage mat. 007 Pallet goods 010 HRS with SU mgmt 012 Bl.stor.with SU mgmt

13. Stock placement

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Storage type indicator for stock placement. Key that determines the storage types to be selected by the system and the priority in which they are accessed for stock placements. You can predefine up to ten storage types when defining strategies for storage type searches. For example:

001 Raw materials (HRS) 002 Shelf goods 004 Block storage mat. 007 Pallet goods 010 HRS with SU mgmt 012 Bl.stor.with SU mgmt

14. Storage section Storage section. Key used by the system to determine that a material is to be

placed into one particular storage section in preference to another. It is possible to define up to ten storage sections in priority order when defining strategies for storage section searches.

15. Block storage Block storage indicator. The block storage indicator classifies materials according

to the way they are stored in a block storage area. It describes how the materials are to be stacked. This indicator is a decisive factor in the definition of the structure of a block within a block storage area.

16. Special movement This indicator is used to separate special posting procedures for Materials

Management documents from the standard processing method. You can enter it manually for each goods movement in the Materials Management system. The system uses it to determine the movement type in the Warehouse Management system. In this way, different movement types in the Warehouse Management system as well as different interim storage types can be assigned to one movement type in the Inventory Management system.

17. Message to inv. Mgmt Indicator: Message to inventory management. Where warehouse management is

decentralized, causes WM data to be sent to the Inventory Management immediately.

18. Addn to stk allowed Indicator: Addition to existing stock allowed. Indicator that determines whether a material with particular characteristics may be added to existing stock of the same

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material with the same characteristics in one storage bin. However, the indicator set in the material master record is ineffective if the storage type control table does not allow addition to existing stock for this storage type.

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4.3.15 QUALITY MANAGEMENT

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H Hour

KG Kilogram

TO TONNE

2. Quality inspection Quality inspection indicator. Indicator that specifies whether the material is subject

to quality inspection, and whether a goods receipt is posted to stock in quality inspection.

3. Unit of issue Unit in which the material is issued from the warehouse. Maintain this field only if

you want to use a unit of measure that differs from the base unit. If the field is not filled, the system will assume that the unit of measure is the base unit.

4. Documentation req. Documentation required indicator. Indicator which shows simply that the material

has a documentation requirement. You can choose the form and content of the documents yourself.

5. MM/PP status Material status from MM/PP view. Indicates the usability of the material in business

functions in materials management and also in production planning and control. The material status determines the functions for which a warning or an error message appears. For example:

01 Blocked for procmnt/whse 02 Blocked for BOM/Task list

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03 Blocked for procmnt 04 Blocked for Warehouse

6. QM inspection data Indicator: QM inspection data exists for material/plant. Indicates that quality

management inspection data exists for that material and plant.

7. GR processing time Goods receipt processing time in days. Number of workdays required after receipt

of the material for its inspection and placement into storage.

8. Inspection interval Interval until next recurring inspection. Specifies the interval between different

quality inspections. If the interval for the recurring inspection has been defined in the material master record, the date of the next recurring inspection is entered automatically when creating a batch.

9. Catalog profile Key of the catalog profile that is to form the basis of the maintenance notification or

quality notification. A catalog profile is a combination of code groups, which determine from a functional viewpoint which code groups can be used for a particular object. For example:

SDINSPEC Shut-Down inspection SERVICE T&L Service catalog SLABSAW Slabsaw T7MAINT T7 Maintenance Catalog TLDUSTCAT T&L Dust collector catalog TLMAINT T&L Production Maint

10. QM material auth. Material authorization group for activities in QM. The material authorization group

for activities in the field of quality management (QM) restricts user access authorization to material-related data in QM. If the field is empty, no authorization check will be carried out for the authorization object "material authorization QM".

Objects and actions affected in QM:

• changing material authorization in the material master database

• If the authorization group is to be changed, the user will require authorization for this group.

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• maintaining the material specification

• processing inspection lots

• recording and processing inspection results (characs. and defects)

• recording and processing completion of the inspection and usage decision

• maintaining the quality level of a material

• maintaining the QA information records for a material

11. QM in procurement If you set this indicator, you should activate "QM in procurement" for all plants

pertaining to a client. If you activate the indicator for QM in procurement in the material master record at the client level, you must also store a control key at the plant level for quality management in procurement.

12. Control key Control key for quality management in procurement. This key controls which

conditions are valid for quality management in procurement. If you activate the indicator for QM in procurement in the material master record at the client level, you must also store a control key at the plant level for quality management in procurement.

13. Certificate type Type of certificate that must be provided with a delivery of a material. For example: 0001 Cert.of compliance w/ order 0002 Manufacturer's test certif. 0003 Test report 0004 Certificate of Compliance

14. QM system reqmts If a material is activated for QM in procurement, the system initiates the following

check whenever purchasing functions are carried out (for example, when a request for a quotation is made or if a purchase order is created:

• whether the vendor's verified QM system, according to vendor master record or quality info-record (for a combination of vendor/material) meets the requirements for QM systems as specified in the material master

In carrying out the check, the system relies on the defined assignments for target QM systems and actual QM systems in the Customizing application. If the check is unsuccessful, a warning message is issued when a request for quotation is initiated and an error message is issued for all other procurement activities.

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15. Tech. Delivery terms If selected, this indicator means that the material is assigned technical delivery terms that have been stored in the document management system.

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H Hour

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2. Valuation category Indicator that determines whether stocks of the material are valuated together or

separately. In the case of split valuation, it also determines which movement types are allowed, that is, the criteria by which the stocks can be valuated.

3. Current period The current period is a self-contained part of the current fiscal year.

4. Division This is a way of grouping materials, products, or services. The system uses

divisions to determine the sales areas and the business areas for a material, product, or service. A product or service is always assigned to just one division. From the point of view of sales and distribution, the use of divisions lets you organize your sales structure around groups of similar products or product lines. This allows the people in a division who process orders and service customers to specialize within a manageable area of expertise.

5. Closing control Indicates whether material ledger valuation is active for the material.

6. Valuation class The valuation class assigns the material to a group of G/L accounts. It allows:

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• the values of materials of the same material type to be posted to different accounts and

• values of materials of different material types to be posted to the same account.

Together with other factors, the valuation class determines which G/L accounts are updated when a transaction relevant to valuation takes place (for example, a goods movement).

7. Price control Indicator determining whether the stock of a material is valuated at standard price,

moving average price, or periodic unit price.

8. Price unit Number of units to which the price refers.

9. Moving average price Price that change in consequence of goods movement and the entry of invoices and

which is used to valuating a material. 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. It changes the price with each valuation-relevant movement.

10. Standard price Constant price with which a material is evaluated, without taking into account goods

movement and invoices. Price variances (for example, purchase price higher than standard price) upon goods receipt or invoice receipt are posted by the system to price difference accounts. This does not affect the standard price.

11. Future price Price at which the material will be valuated as from a precise date in the future. The

future standard price is valid as of the date you enter in the relevant field. Before the future price can become effective, you must activate it for material valuation.

12. Valid from Date as from which the future price of the material is valid.

13. Tax price Price at which the material is valuated for tax purposes.

14. Commercial price Price at which the material is valuated for commercial purposes.

15. Devaluation ind

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Lowest value: devaluation indicator. A devaluation indicator representing the number of years a material has already been classed as "slow or non-moving". The devaluation indicator determines the percentage by which the value of a material is reduced. It allows the results from previous years to be taken into account when the "lowest value" of a material is determined on the basis of whether it is slow/non-moving. The devaluation indicator is:

• increased by 1 if the material is slow or non-moving

• set to 0 if the material is medium or fast-moving

16. LIFO / FIFO relevant Determines whether the material or movement type is subject to LIFO Valuation

(Valuation of a company's assets (stocks) according to the LIFO procedure for balance sheet purposes) and FIFO valuation.

17. LIFO pool Alphanumeric key that uniquely identifies a pool. Materials to be valuated together are grouped under a pool number.

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