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SAP MM Functional Overview PDF
SAP MM Functional Overview PDF
SAP MM Functional Overview PDF
Topics
Procurement
Inventory Management/
Valuation
Overview and Organizational Structure
Definition: Logistics
Capital resources
Logistics chain
Procurement Production Sales
Purchase orders Ware- Distributions Ware- Sales orders
materials house house products
services services
Vendor
Material resources Customer
Capacity resources
Overview of MM
Material requirements
planning
Sales and
Internal and external accounting distribution
Procurement Process
Order Invoice
MRP
?
7 Invoice verification 1 Requirement determination
MM
Materials
Goods receipt and management
6 Source
inventory management 2
determination
Order
Controlling areas
Company codes
Valuation areas
Plants
Client
Company codes RC
Mumbai Delhi
Plants
plant depot
Business area
0002
Purchasing Organization
Purchasing
0001 0002 0003
organizations
Purchasing group 2
Purchasing organization 1
Purchasing organization 2
Purchasing
organization
Material number
Description
Units of measure
Technical data
Storage location-
specific data Forecast data
4 16 72
Valuation class
ROH 3000
3010
HALB 7920
HIBE 3000
Maintenance of material
data
Price control
S V
Standard-
Moving average
price control:
price control:
Valuation of
Final delivered price
standard price
(such as purchase
from the material
order price) influences
master record
the valuation price
Purchasing Master Data
Purchasing Master Data
The Vendor
The vendor
Purchasing
Bank
purch
ase
order DEUTSCHE
MARK
DEUTSCHE
MARK
Payment DEUTSCHE
MARK
Vendor
Material Invoice
order account
?
=
Company code
Vendor master record
General data
Valid
Address for the whole group
Communication
Purchasing data
Valid
Order currency for one purchasing
Incoterms organization
Minimum order value
Accounting data
Valid
Bank data for the whole group or
Payment transactions for one company code
Account management
Account group
One-time
account
Account group
You
Vendor
Invoice
Enter invoice
Info record
Consumable
material M2
Info record
Vendor data
Origin data
Order unit
Price history
Purchasing statistics
Changes
Pricing
11 Purchase order
Pricing procedure RM000 Vendor 123
Purchasing organization 2000
Net price:
Fixed freight FRA1
charge + Calculation type
Scale basis
Effective price: Price/quantity
scale
Purchasing Master Data
Source List
Source list
Source list
Vendor 1 allowed Vendor 1 fixed
Vendor 2 allowed
Material M1 Vendor 3 allowed
Plant 0001
Procurement
Procurement
Procurement Environment
External procurement
Source list environment
Requirements
determination
RFQs
Purchase
Quotations
Quota requisition
arrangement
Source Piece
Piece
Outline determination %%
agreement Conditions
Vendor Conditions
selection USD
USD
Info record
Purchase
order
history
Purchase
Invoice
order
receipt
Goods receipt
Purchasing documents
Purchase
requisition
RFQ
Quotation Quotation
Purch.order
31. 1.
Contract
Scheduling
Release order agreement
Structure of a purchasing
Purchasing
document
document
ocument
Document header
ocument
General
General data
data
statistics
statistics
Messages
Messages
Conditions
Conditions
Additional
Item 1 data for item 1
General data Purchase
Conditions order history
Texts
...
Schedule line
Item 2 Additional
data for item 2
...
...
Item category
Purchasing
document A B C
Item Acct.assign.
type type
Procurement for stock
Purchasing
document(s)
Item:
no account Warehouse
assignment
Goods
category
receipt
Goods
issue
Material
Production
Vendor
Procurement for consumption
Purchasing
document(s)
Item:
with account
assignment
category
Goods
receipt Production
Vendor
Material
Procurement
Consumption-driven MRP
Consumption-driven MRP
Requirements
planning
A
Forecasting Lot sizing Material
Inventory
Purchasing management
Materials planning and
control procedures
Requirements
planning
VM, VB VV
Reorder point
Stochastic
procedure
Stock level Consumption
Time Time
Reorder Point Procedure
Stock Lot size
Reorder level
Safety stock
Replenishment
lead time
Net Requirements Calculation in
the Reorder Point Procedure
Shortage
Purchase order proposal
to the amount of
the lot size
Reorder level
Purchase order
Fixed planned
Comparison
Comparison
orders
Fixed purchase
requisition
Warehouse stock
Safety Stock and Reorder Level
Stock
Reorder
Daily level
x Replenishment
lead time
Safety stock
Replenishment
lead time
Time
Service level Replenishment
lead time
MAD
Net Requirements Calculation in
Forecast Based Plng.
Shortage
Lot size
Forecast requirements
Fixed inward movements
e.g. purchase orders
Replenish to
maximum stock
level
Periodic
Lot sizing procedures
procedure
Optimum
procedure
Time
Planned warehouse stock =
Fixed lot size
Replenish to
maximum stock level
Periodic Lot-sizing Procedures
Quantity
Time
Period length Period length
Inward
movements
Outward
movements
Dynamic Planning
Calculation
Req. x Price x Storage costs % x Time in storage
Storage costs =
100 x 365
Price : $ 20
Lot fixed costs: $ 100
Storage costs percentage : 10 %
Optimum
Part Period Balancing
Req. x Price x Storage costs % x Time in storage
Storage costs =
100 x 365
Price : $ 20
Lot fixed costs: $ 100
Storage costs percentage : 10 %
Optimum
Least Unit Cost Procedure
Req. x Price x Storage costs x Time in storage
Storage costs =
100 x 365
Price : $ 20
Lot fixed costs : $ 100
Storage costs percentage : 10 %
Optimum
Scheduling in the case of
external procurement
Forward scheduling
11 22
Replenishment lead time GR processing time
t
Today + 1 Purch. order MRP
delivery date delivery date
Backward scheduling
22 11
Replenishment lead time GR processing time
t
Start / Purch.order MRP
release date delivery date delivery date
The requirements planning
process
Planning mark-out
Process
relevant to 31. 1.
MRP
Order
Material requirements
planning
MRP
Planned order
Opening period of
materials planning/
control
Purchasing Purchase
requisition
Purpose of the forecast
A
Material
MRP type
VM VV
Forecast Forecast
Reorder level
Forecast requirements
Safety stock
Procurement
Processing Purchase Requisitions
Purchase requisition
Department
MRP
Requisition Requisition
Purchasing
Purchase requisition
processing
MRP Direct entry
Purchase requisition
Vendor
o.k.
RFQ Purchase
order Release
Release
order
order
?
Procurement
Processing Vendor Inquiry / Quotations
Request for quotation/
quotation RFQ 1 RFQ 2
Requirements known.
Procure from which ?
source?
Vendor 1 Vendor 2
Quotation 1 Quotation 2
Purchase Rejection
order
Entering an RFQ
11 22
Item list
Vendor 1 Inquiry 1
Vendor 2 Inquiry 2
?
Issuing output Purchasing
document
Output
Printer EDI Fax
Reminder Rejection
Reprint Order
acknowledge-
ment check
Processing Quotations:
11 Example
Enter price and pricing conditions
Vendor A Vendor B Vendor C
Quotation for Quotation for Quotation for
RFQ 1 RFQ 2 RFQ 3
Item 10 Item 10 Item 10
Gross price: 400/t Gross price: 400/t Gross price: 400/t
Discount: $50 Surcharge: 50% Fixed costs: $40
22
Compare quotations using price comparison list
Steel 2 t 350/t 480/t 520/t 450/t
Price
One-time vendor $$
Info record
Contract
11 22
Vendor
Scheduling Agreements
Purchase RFQ Reference Purchase
scheduling
requisition agreement requisition
Scheduling Einstellungen
agreement Einstellungen
Schedule lines
11 22
Vendor
PROCUREMENT OF EXTERNAL SERVICES
Inventory Management/Valuation
Inventory Management
Goods Movements
Inventory management
Old system Vendor In-house
production
Goods receipt
Transfer posting
Warehouse 1 Warehouse 2
Goods issue
Consumption
Scrapping
Documents for goods
movements
Warehouse
A
Material
Goods movement
Material
document Accounting
document
Material Valuation Levels
Material valuation levels
0001
Valuation area
Split Valuation: Structure
Valuation
Valuation area 0001
Plant 0001 Material 1
Material 1 Valuation category H
Plant
Quantity 100
Mvg. av. price 5.20
Batch
Italy France Italy France
Quantity 10 Quantity 20 Quantity 30 Quantity 40
Updating the stock situation
Stock situation
Account determination
Consumption update
Field selection
Analyses in inventory
management
Analyses
ABC-Analyses
Stock per material
Slow-moving items/
Warehouse stock list inventory turnover
Standard analyses
Inventory Management
Processing Goods Receipts with Purchase
Order Reference
Purchase Order Views in
Inventory Management
Purchase order
Header $ Conditions
Statistics Vendor Conditions
Texts Output
General
Items 01/01/95
Schedule
10/01/95
Purchase order lines
30/03/95
history
Texts
Determining the purchase
order during GR
Manual
Purchase Matchcode
Manuell
order
List of open purchase orders by
- vendor
- material
- delivery plant
Stock types for goods
receipt Goods receipt blocked stock
Unrestricted-use stock
Warehouse
Stock in quality inspection
Co
Vendor n su Blocked stock
mp
ti o
n
Price differences
( ) ( )
Preplanning
Goods receipt
Miscellaneous
Stock transfer
transfer postings
Expense
Expense // revenue
revenue
Stock
Stock plant
plant 01
01 from
from stock
stock transfer
transfer Stock
Stock plant
plant 02
02
(( aa )) 200.00
200.00 100.00
100.00 300.00
300.00
(( bb )) 200.00
200.00 200.00
200.00
Inventory Management
Processing Goods Issues
Goods issues
From warehouse
Goods issue
From consignment
stores
Consumption Issue
Asset Scrap
Sales
Order
Effects of goods issue
Material document Stock quantity
Consumption statistics
Accounting document ...
Point of consumption:
G/L account.
Cost center
Stock account
Order
Consumption account
...
...
Goods issue
Warehouse mgmt:
Reservation Transfer order
Stock account
Stock value Consumption account
3
Print physical
inventory
document
Physical 4
inventory document
Arrange 5a
5 recount
List of
differences Change 5b
count
6
Post differences
Invoice Verification / Valuation
Types of invoice
verification
Purchase
or or
order
Purchase Vendor
order invoice
Goods receipt
Invoice verification
?
Invoice verification
Purchase
environment
order
G/L accounts
Assets
Invoice Invoice
---- verification document
Cost centers
Goods receipt
Vendor master
Material master
Conditions
Posting an invoice
Invoice
relating to
purchase
order GR/R account
Post
Vendor account
A B
XX XX
Purchase Invoice
order Price
$5 at $6
Invoice
10 pieces = 250 g
Goods receipt Order
10
10 pcs
pcs == 200g
200g price quantity
Purchase Invoice
order
= 2 kg 10 pieces = 2.5 kg
10 pieces at
$20/kg
Purchase Invoice
order
Planned Date
delivery date 04/12/95 26/11/95
Tax
Company Material value
Material value
KMT
+Tax on sales/
+ input tax Purchases A
A
Vendor Customer
Tax payable
Tax office
Invoice receipt postings
Vendor
GR/R clearing Input VAT (control acct.)
Stock account
Stock value Price differences
( ) ( ) ( ) ( )
Postings at Standard Price
Stock account GR / IR clearing account
(2) 200.00
(3) 240.00 240.00 (2)
MM SD
Non-Movement Type
based Transactions
Grouping Organizational Levels
forCase:
Account Determination
valuation area = plant
Valuation
grouping Plant Company code Chart of accounts
code
0004
FERT
0001 7900
HALB
HAWA 0002 3000
. 3010
. 3020
. 3030
ROH1 0003 3040
ROH2 3100
0004
ROH3 3200
...
Grouping of Materials for
Account
Option 1:
Determination
Option 2 Option 3
HIBE HIBE
Acct.
Acct. 22
Mat 3 Mat 3
Mat 4 Mat 4
FERT FERT
Acct.
Acct. 33 Acct.
Acct. 33
Mat 5 Mat 5
Mat 6 Mat 6
Procedure Part 1: Value String
- Processing Keys
Inventory Management Invoice verification Invoice
verification
?
=
Material
Value String
Transaction
(Generalized
posting record)
BSX
BSX WRX
WRX KBS
KBS
Processing keys
300100
300100 191100
191100 425000
425000
G/L account number
Procedure Part 2: Processing
Key - Rules
1
Processing keys
Transaction
for debit/credit posting
Rules specify
account determination
key
Account Determination
Procedure: Overview
Type of Material
Transaction Plant
Master
Movement Non-move-
"Type of
type based ment type based
Transaction Transaction
Material"
Material
Step 1 or 2
Type
Value Qty.
Posting String Posting String
Account
Company Code
Categ. Reference
Step 3
Rules
Processing
Key (GBB) Account Valuation Val. Grouping
modification Class Code
Processing
Key (AUF)
Chart of
Step 4
Account
Legend
Information derived from Transaction type G/L Account
Information derived from Material Master
Information derived from the organiz. Structure
Main Customizing area
Automatic Posting:
Maintenance of the Settings
1
Selection of the
valuation grouping code
2
Selection of the posting transaction
3
Allocation of the G/L account number(s)
per valuation class
(and account grouping code)