Material Management

Step-1 Basis SAP R 3 Basis Business Framework Architecture

Step-2 Co-operative Business Scenarios Customer Relationship Management Advanced Planner and Optimizer Strategic Enterprise Management Business to Business Procurement Business Information Warehouse

Step-3 Basics of Procurement Process Organizational Levels Purchase Order Processing Goods Receipt Invoice Verification

Step-4 Master Data Vendor Master Record Material Master Record

Step-5 Procurement of Stock Material Request for Quotation / Quotation Processing Purchasing info Records Purchase Order Processing Goods Receipts into Quality Inspection Invoices with Unplanned Delivery Costs

Step-6 Procurement of Consumable Material Purchase Requisitions Purchase Order Processing Goods Receipt Invoice Verification Blanket Purchase Order

Step-7 Procurement of External Services Master Data Purchase Order Maintaining and Releasing Service Invoice Verification

Step-8 Procurement of External Services Master Data Purchase Order Maintaining and Releasing Services Entry Sheets Invoice Verification

Step-9 Reporting in SAP MM Reporting at Document Level Reporting with the Logistics Information System (LIS)

Step-10 The Basics of Material Planning Planning Requirements Overall Procedure MRP Types

Step 11 Planning Run Planning Types Control Parameters in Planning

Step-12 Purchasing Details Optimized Purchasing (Overview) Sources of Supply (Overview) Purchasing Info Record

Step-13 Outline Agreements Contracts Scheduling Agreements

Step-14 Basics of Procurement Process Organizational Levels Purchase Order Processing Goods Receipt Invoice Verification

Step-15 Source Determination Source Lists Quota Arrangements Source Determination

Step-16 Procurement of Stock Material Request for Quotation / Quotation Processing Purchasing info Records Purchase Order Processing Goods Receipts into Quality Inspection Invoices with Unplanned Delivery Costs

Step-17 Optimized Purchasing Optimized Purchasing User Parameters Automated Procurement

Step-18 Goods Receipt Special Features of Goods Receipt

Step-19 Reservations and Goods Issues Reservations Goods Issues

Step-20 Stock Transfer/Transfer Postings Stock Transfer Transfer Posting

Step-21 Consignment Price Data for Consignment Material Procurement of Consignment Material Settlement of Consignment Liabilities

Step 22 Subcontracting Purchase Order Provision of Components Goods Receipt and Consumption of Components Postings Scheduling Agreements with Subcontrating

Step-23 Valuation and Account Assignment Configure Automatic Account Determination

Step-24 Material Price Changes Changes to the current valuation price Price Changes in the previous posting period or previous year Debits and Credits to Materials Postings to the previous period

Step-25 Special Inventory Management Features Split Valuation Non-Valuated Material Returnable Transport Packaging

Step-26 Introduction to Invoice Verification Invoice Verification as Part of Material Management Invoice verification Tasks Posting an Invoice Account Movements Price Control

Step-27 Basic Invoice Verification Procedure Invoice Verification Procedure Purchase-Order-Based Invoice Verification Goods-Receipt-Based Invoice Verification Basic Invoice Verification Functions

Step-28 Taxes, Cash Discounts, and Foreign Currency Enter and Post Taxes Enter and Post Cash Discounts Invoices in a Foreign Currency

Step-29 Variances and Blocking Reasons Types of Variances Quantity Variances Price Variance Blocking due to Quality Inspection Blocking due to Amount Tolerances Blocking invoices Manually Stochastic Blocking

Step-30 Invoice Reduction Automatic Invoice Reduction at item Level Posting Logic with Invoice Reduction

Step-31 Variances Without References to an Item Total-Based Invoice Reduction Total-Based Acceptance Vendor-Specific Tolerances

Step-32 Invoices for POs with Account Assignment Enter invoices for POs with Account Assignment Posting Logic for Invoices for POs with Account Assignment Invoices Relating to a Blanket Purchase Order

Step 33 Delivery Costs Planned Delivery Costs Unplanned Delivery Costs Posting Planned and Unplanned Delivery Costs

Step 34 Subsequent Debits/Credits Enter and Post Subsequent Debits/Credits Account Movements with Subsequent Debits/Credits

Step 35 Credit Memos and Reversals Enter and Post Credit Memos Reverse Invoices

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What is SAP MM?

SAP MM (Materials Management) is a module of the SAP Enterprise Resource Planning (ERP) package that is used for Procurement Handling and Inventory Management.

The module has two important master data - material and vendor. Broadly, the various levels that can be defined for a SAP MM implementation are: Client, Company Code, Plant, Storage Location and Purchase Organization.

This is the largest and most complex in all of SAP modules. It can be divided into five major components. There are: materials management, plant maintenance, quality management, production planning and control, and a project management system. Each is divided into number of subcomponents.

SAP Materials management covers all tasks within the supply chain, including consumption-based planning, planning, vendor evaluation and invoice verification. It also includes inventory and warehouse management to manage stock until usage dictates the cycle should begin again. Electronic Kanban/Just-in-Time delivery is supported.

SAP Plant Maintenance supports the activities associated with planning and performance repairs and preventative maintenance. Completion and cost reports are available. Maintenance activities can be managed and measured.

The SAP Quality Management capability plans and implements procedures for inspection and quality assurance. It is built on the ISO 9001 standard for quality management. It is integrated with the procurement and the productions processes so that user can identify inspection points both for incoming materials and for products during the manufacturing process.

SAP Production Planning and Control supports both discrete and process manufacturing processes. Repetitive and configure-to-order approaches are provided. This set of modules supports all phases of manufacturing, providing capacity leveling and requirements planning, material requirements planning, product costing, bills of material explosions and implosions, CAD dialog interface, and engineering change management. The system allows users to link re-work orders to production schedules.

The SAP Project Management System provides the users the capability to setup, manage, and evaluate large complex projects. While the financial costing projects system focuses on costs, the manufacturing project system is used for planning and monitoring dates and resources.

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Recommended Reading

Administering SAP R 3: MM - Materials Management Module

Author:Bernard Dodd
Released: December 1997
ISBN: 13: 978-0789715029

Que's Administering SAP R/3: MM-Materials Management Module is a valuable reference tool for companies implementing SAP R/3's MM methodology and software. It focuses on the business and technical decisions that need to be made before, during, and after administration of the MM module, explains how the Enterprise Data Model carries your company's data, and how the SAP R/3 Business Engineer maximizes your system's performance. Learn to integrate the MM module with your existing SAP R/3 system and how to get users up and running with the Education and Training Course Planner.



SAP MM-Functionality and Technical Configuration

Author:Martin Murray
Released: June 1, 2006
ISBN:-13: 978-1592290727

This detailed reference book explains the basic aspects of each area within MM before exploring their specific functionality. Readers stand to benefit quickly by developing a comprehensive understanding of MM and by learning how it works and interacts with other SAP modules.

All aspects are covered in detail, as are the key "touchpoints" with other modules, such as PP, SD, QM and FI. The author explores important cross-application issues like document management, batch management, and classification.

This one-stop resource for MM can also be used by SAP practitioners wanting to discover how MM can benefit their specific areas of expertise. In addition, anyone making a software/application decision can benefit greatly, as this book provides all important functionality and technical configuration details.

By reading this book you will be able to fully appreciate the entire breadth of SAP MM, thus significantly boosting your skills and abilities to directly leverage MM functionalities in your daily work.

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