The SAP Materials Management Handbook

436 Pages·2014·23.03 MB·English

by  Ashfaque Ahmed

Business Management / Enterprise Resource Planning A
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Although tens of thousands of global users have implemented Systems, Applications, The SAP
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and Products (SAP) for enterprise data processing for decades, there has been a need for a d
dependable reference on the subject, particularly for SAP materials management (SAP MM).
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Filling this need, The SAP Materials Management Handbook provides a complete
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understanding of how to best configure and implement the SAP MM module across various h
types of projects. It uses system screenshots of real-time SAP environments to illustrate the e

complete flow of business transactions involved with SAP MM. Supplying detailed explanations S
of the steps involved, it presents case studies from actual projects that demonstrate how to A
convert theory into powerful SAP MM solutions. Management
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• Includes tips on the customization required for procurement of materials
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and inventory management
• Covers the range of business scenarios related to SAP MM, including the a
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subcontracting cycle and consignment cycle e
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• Provides step-by-step guidance to help you implement your own SAP MM module
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• Illustrates the procure to pay lifecycle
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• Depicts critical business flows with screenshots of real-time SAP environments

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This much-needed reference explains how to use the SAP MM module to take care of the
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range of business functions related to purchasing, including purchase orders, purchase requi- n
sitions, outline contracts, and request for quotation. It also examines all SAP MM inventory a
Ashfaque Ahmed
management functions such as physical inventory, stock overview, stock valuation, move- g
ment types, and reservations—explaining how SAP MM can be used to define and maintain e
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materials in your systems.
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K18886
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an informa business
ISBN: 978-1-4665-8162-3
www.crcpress.com k
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K18886 cvr mech.indd 1 2/7/14 12:40 PM
The SAP
Materials
Management
Handbook
The SAP
Materials
Management
Handbook
Ashfaque Ahmed
The SAP
Materials
Management
Handbook
Ashfaque Ahmed
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742
© 2014 by Taylor & Francis Group, LLC
CRC Press is an imprint of Taylor & Francis Group, an Informa business
No claim to original U.S. Government works
Version Date: 20140203
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Contents
Preface ...............................................................................................................................xxv
Author .............................................................................................................................xxvii
1 Introduction to SAP Materials Management and Navigation .....................................1
Introduction ......................................................................................................................1
What Is SAP? .....................................................................................................................1
Importance of Enterprise Resource Planning .....................................................................2
What Is SAP MM? ............................................................................................................2
SAP Is Not Easy ................................................................................................................3
Complexity Issues for End Users...............................................................................3
Complexity Issues for SAP Consultants ....................................................................3
Typical Nature of SAP Transactions .........................................................................3
Typical SAP User Screens .........................................................................................4
Difficult Language ....................................................................................................5
Navigation .........................................................................................................................5
Log On .....................................................................................................................5
User Screen Elements ................................................................................................6
Menu ...............................................................................................................6
Standard Tool Bar ...........................................................................................7
Title Bar ..........................................................................................................8
Application Tool Bar .......................................................................................8
Screen Body .....................................................................................................8
Status Bar ........................................................................................................8
Standard Tool Buttons ..............................................................................................8
Personalization ...................................................................................................................9
Transaction Codes .............................................................................................................9
Help Functions .................................................................................................................10
2 Business Mapping in SAP Materials Management and Job Advice............................11
Introduction .....................................................................................................................11
Business Function Mapping in SAP MM ........................................................................12
Purchase Requisition ...............................................................................................13
Purchase Order ........................................................................................................13
Request for Quotation .............................................................................................13
v
vi  ◾  Contents
Contract ..................................................................................................................13
Scheduling Agreement .............................................................................................13
Invoice .....................................................................................................................14
Material Requirement Planning ...............................................................................14
Reservation ..............................................................................................................14
Material Document .................................................................................................14
Financial Document ................................................................................................14
Core and Central Functions .............................................................................................15
Minimal Customization Required in SAP MM ................................................................15
Real World and SAP .........................................................................................................15
Job Advice .........................................................................................................................15
How to Learn SAP............................................................................................................16
Project Management and SAP Responsibilities .................................................................17
3 SAP MM Masters and Organizational Structure .......................................................19
Introduction .....................................................................................................................19
Material Master ...............................................................................................................20
Material Master Setup Information ........................................................................22
Material Master Views ............................................................................................22
Basic Data View 1 .........................................................................................22
Basic Data View 2 .........................................................................................24
Sales Organization Data View 1 ....................................................................26
Sales Organization Data View 2 ....................................................................27
Sales: General Plant Data View .....................................................................27
Purchasing View ............................................................................................28
MRP Views ...................................................................................................29
General Plant Data Views ...............................................................................31
Accounting Views ..........................................................................................32
Costing Views ................................................................................................33
Material Types .................................................................................................................37
Important Material Types .......................................................................................37
Additional Material Types ......................................................................................38
Material Group ................................................................................................................39
Plant ................................................................................................................................40
Storage Location ..............................................................................................................42
Purchasing Organization .................................................................................................43
Purchase Group ...............................................................................................................48
Purchasing Value Key ......................................................................................................48
Vendor Master .................................................................................................................49
Source List ........................................................................................................................52
Info Records ....................................................................................................................54
Info Record at Plant or Purchasing Organization Level ..........................................56
Info Record Structure ..............................................................................................57
Procurement Types in Info Record ..........................................................................57
Info Record Net Price and PO Net Price .................................................................57
Creating Info Records ............................................................................................58
Net Price Simulation ..............................................................................................58
Contents  ◾  vii
Conditions .......................................................................................................................58
Condition Groups....................................................................................................59
Variant Conditions ..................................................................................................59
Pricing (Condition Technique) .........................................................................................59
Quota Arrangement .........................................................................................................60
Quota Arrangement Calculation ............................................................................60
4 SAP MM Purchasing Management ............................................................................61
Introduction .....................................................................................................................61
Integration Points ............................................................................................................62
Make to Stock versus Make to Order ...............................................................................63
Complete Purchasing Cycle .............................................................................................64
Purchase for Stock versus Purchase for Consumption .......................................................65
Automatic Account Determination ..................................................................................66
Configuration Steps .................................................................................................67
Account Assignment for Purchase Documents .......................................................68
Account Assignment Category ................................................................................69
Similar Names but Different Entities ...............................................................................69
Item Category ..................................................................................................................70
Item Category Characteristics .................................................................................70
Release Procedure ............................................................................................................70
Release Procedure for PR ........................................................................................71
Release Procedure without Classification for PR .....................................................71
Release Codes ................................................................................................71
Release Indicator ...........................................................................................72
Assign Release Indicator ................................................................................72
Release Points (prerequisites) .........................................................................72
Determine Release Strategy ...........................................................................72
Release Procedure with Classification for PRs.........................................................72
Create Characteristics ....................................................................................72
Create Class and Assign Characteristics to Class ...........................................73
Create Release Groups ...................................................................................73
Create Release Codes .....................................................................................73
Create Release Indicators ...............................................................................73
Create Release Strategies .................................................................................74
Assign Release Codes to a Release Point (Create Workflow) ...........................74
Source Determination .......................................................................................................74
Source Determination Sequence ..............................................................................74
Purchase Documents .......................................................................................................75
Type of Purchase Documents .................................................................................75
Purchase Document Structure ................................................................................75
Document Types .....................................................................................................76
Purchase Document Numbering .............................................................................76
Purchase Document Screens ....................................................................................76
Enjoy Interface .................................................................................................................77
Features of Enjoy Interface .....................................................................................77
Document Overview ..............................................................................................78
viii  ◾  Contents
Purchase Requisition .......................................................................................................79
Fund Availability ....................................................................................................79
Parts of a PR ...........................................................................................................80
Request for Quotation ......................................................................................................81
RFQ Document Structure .......................................................................................81
Prerequisites for RFQ .............................................................................................82
RFQ Creation Manually ........................................................................................82
RFQ Creation Using Reference Document ............................................................83
Creating a Delivery Schedule for an RFQ ..............................................................83
Comparing Quotations ...........................................................................................83
Rejecting Quotations ..............................................................................................84
Selecting Quotation ................................................................................................84
Outline Agreement ..........................................................................................................84
Structure of Outline Agreement Document ............................................................85
Creating Outline Agreement Documents ................................................................85
Changing, Cancelling, and Blocking Outline Agreement Document .....................86
Contract ..........................................................................................................................86
Structure of Contract Document ............................................................................87
Central Contracts ...................................................................................................87
Partner Roles ..........................................................................................................88
Item and Account Assignment Categories in Contracts ..........................................88
Distributed Contract ..............................................................................................89
How Distributed Contracts Work ..........................................................................89
Contract Distribution with Classification ...............................................................90
How to Create Contract Distribution with Classification .......................................90
Contract Release Order ..........................................................................................90
Scheduling Agreement ......................................................................................................91
Advantages of Scheduling Agreements .....................................................................91
Item and Account Assignment Categories in Scheduling Agreements ......................91
Procurement Types in Scheduling Agreements ........................................................91
A Scheduling Agreement Document Structure .......................................................92
Creating Scheduling Agreements ............................................................................92
Time Zones in Schedule Lines in Line Items in Scheduling Agreements ................92
Scheduling Agreement Release ...............................................................................93
Messages for SA Release ..........................................................................................94
Scheduling Agreement with Centrally Agreed Contract .........................................94
Purchase Order ................................................................................................................94
Procurement Types in PO.......................................................................................95
PO Creation Scenarios............................................................................................96
Prerequisites for Creating PO .................................................................................96
PO with Zero Value ................................................................................................96
Important Considerations in PO Life Cycle ...........................................................96
Cancelling a PO .....................................................................................................97
Blocking a PO ........................................................................................................97
Monitoring a PO ....................................................................................................97
Archiving of PO .....................................................................................................98
PO with Enjoy Interface .........................................................................................98
Contents  ◾  ix
GR-Based Invoice Verification .........................................................................................98
Returns ............................................................................................................................98
Invoicing Plan ..................................................................................................................99
Periodic Invoicing Plan ...........................................................................................99
Partial Invoicing Plan .............................................................................................99
Important Considerations for Invoicing Plans ......................................................100
Automatic Settlement of Invoicing Procedure .......................................................100
5 SAP MM Inventory Management ............................................................................101
Introduction to Inventory Management ..........................................................................101
Inventory Management in a Nutshell ..............................................................................102
Integration Points ...........................................................................................................102
Stock Item versus Consumable Item ...............................................................................103
Movement Types.............................................................................................................104
Material Document ........................................................................................................105
Accounting Document ...................................................................................................106
Quality Management in Inventory Management ............................................................106
Material Status ................................................................................................................106
Goods Movements in SAP MM–IM ..............................................................................106
Goods Receipt ................................................................................................................107
Planning for GR ....................................................................................................107
Planning GR with POs ..........................................................................................107
Planning GR with Production Orders ...................................................................107
Planning GR with Reservations .............................................................................108
Tracking GRs against POs ....................................................................................108
PO Creation for GR .......................................................................................................108
Steps to Create GR from PO .................................................................................108
Steps to Create GR from Shipping Notification .....................................................109
Results of GR ........................................................................................................109
Under/Over Delivery and Final Delivery ...............................................................109
Many GRs per PO Line Item ................................................................................110
GR for Nonvaluated Materials ...............................................................................110
Order Unit of Measure and Unit Price ..................................................................110
Entering a Freight Supplier ....................................................................................111
Shelf Life and Batch Management in GR ..............................................................111
Releasing Material from Blocked Stock .................................................................111
GR for Production Orders .....................................................................................112
GR for By-Products ...............................................................................................112
Other GRs .............................................................................................................112
Goods Issue ....................................................................................................................113
GI General .............................................................................................................113
Account Assignment ..............................................................................................113
GI without Reference Document ...........................................................................114
GI for Scrapping ....................................................................................................114
Taking Sample .......................................................................................................115
GI with Reference to Reservation ..........................................................................115
GI for Production Order ........................................................................................115