User Manual

MM – Inventory Management – Mill Cut

Nagesh Bezawada

Paritas Software Solutions Pvt. Ltd.

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Template history:

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1.0 Nagesh,

Document history:

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Draft Nagesh

Related or Reference Documents:

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Review History:

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Contents
1 Introduction.................................................................................................................................................................5
1.1 Document Purpose..................................................................................................................................................5
1.2 Acronyms and Glossary.....................................................................................................................................5
2 Purchasing...................................................................................................................................................................6
2.1 Purchase Info Record........................................................................................................................................6
2.1.1 Creating a Purchase Info Record..........................................................................................................................6
2.1.2 Displaying a Purchase Info Records......................................................................................................................9
2.1.3 Changing a Purchase Info Record.........................................................................................................................9
2.1.4 Deleting a Purchase Info Record.........................................................................................................................10
2.2 Source List.........................................................................................................................................................10
2.2.1 Creating Source List............................................................................................................................................10
2.3 XXXXXX.............................................................................................................................................................11

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1 Introduction

1.1 Document Purpose

This document is a user manual that describes and helps in using the various business processes in Materials
Managements module of SAP.

This document covers aspects of Steel Metal Cutting or Mill Cut Process in SAP DIMP.
1. Mill Cut for Plant/Storage location (normal) stock

1.2 Acronyms and Glossary

A list of definitions, acronyms and abbreviations used in documentation are given below.

PR Purchasing Requisition
AP Accounts Payables
BRD Business Requirement Document
PO Purchase Order
RFQ Request for Quotation
GR Goods Receipt
GI Goods Issue
IR Invoice Receipts
TCode SAP Transaction Code
WBS Work Break Down Structure
GL General Ledger
UoM Unit of Measure
MM Materials Management
PES PES Engineers Pvt Ltd
INR Indian Rupees
PIR Purchase Info Record

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2 Inventory Management – Mill Cut Process
2.3.2 Use

When you work with materials managed in batches, it will often be the case that you do not need to use the whole
batch at once, but only part of it for a sales order. The rest remains in stock.

For example, you have a steel plate which is used for fabrication. The sheet is cut into pieces as per requirement and the
remainder of the piece is put back to storage. Later when a requirement comes for a smaller piece(s), such cut pieces
can be used.

You can also use the cutting stock transfer for materials that are not managed in batches.

2.3.3 Integration

The Mill Products stock transfer is based on the Enjoy transaction Post Goods Receipts (MIGO) from Inventory
Management.

Costs and capacities for the cutting transaction are not confirmed in the cutting stock transfer. It’s a pure goods
movement transaction

To reach the cutting stock transfer, choose Logistics  Materials Management Inventory Management  Goods
Movement Cutting Stock Transfer.

2.3.4 Features

You can use the cutting stock transfer to make the following postings:

Reposting
An issuing quantity is distributed to a number of receiver quantities. (Say one MS Plate is distributed to 10 stiffeners,
1 flange and remainder is put back to stock as cut piece).
You cannot repost unvalued sales order stocks.
Residual posting
The residual posting posts the difference between the issuing quantity and the total of all the receiver quantities. The
remainder can be posted as follows:
         Remainder is scrap
The remainder is posted to a cost center as scrapping.

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 The allowance of scrap to be posted to cost centre is controlled by the setting in Customizing for Mill Cut
(Transaction code OMILL_CUT). If it is set to blank or zero here, not even 1 gram of scrap can be posted to a cost
center.

         Remainder to scrap material

The system automatically generates the receiver item for the scrap material when you post.
The scrap material must not be handled in batches.
         Remainder is stock difference
If the remaining quantity in the system is not the same as the actual quantity, you can post the difference
between the two can be posted as a stock difference.

See the function help for more information.

2.1 Mill Cut for Plant/Storage Location stock

The process indicates the steps to be followed while doing mill cut on non-project stock.

Procedure
1. Access the transaction choosing one of the following navigation option:

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 SAP ECC menu SAP Easy Access  Logistics  Materials Management 
Goods Movement  MILL_CUT

Transaction code MILL_CUT

The Mill cut transaction screen is as shown below in the screen shot.

As you can notice there are two parts for data entry and an option 3rd part

1) Sending Item – This is the section to enter details of the source or sending item – viz the plate which we
would be cutting. This section takes the material code, quantity, plant, storage location, movement type
and Batch in case the source plate is batch managed.
2) Receiving Items – In this section, the components into which this plate is going to be cut into can be
maintained. Enter the batch number and maintain the classification values for the components and cut
piece(s). At PES, material codes have been created for cut pieces related to the main raw plates. For
example an MS 2062 E250 B grade steel plate’s code is 2000016. The related cut piece code is say
CP2000016.
3) Remaining Quantity – In this section, the remaining quantity keeps getting refreshed as the receiving
item quantities are updated. If some quantity is still remaining after cutting components and useful cut
pieces, it can be posted to scrap by choosing the options here.

Once the screen is thrown, first step is to go to the where tab and choose movement type.

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In the movement type field – press F4 and choose “309” (normal stock)

Enter the plant and Storage location in “Where” Tab.

Enter the source material – Steel Plate in “Material” Tab and quantity in “Number” tab.

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If the material is batch managed, the batch tab appears. Maintain the correct batch by choosing from F4.

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Notice the remaining quantity in screen shot above. As we keep updating the Receiving items, the remaining
quantity keeps getting updated.

Enter the receiving items in the receiving section,

Material Code, Quantity and Batch – Better to follow Batch which is closer to the source batch – Say if source
plate batch is “ABC01”, then maintain the receiving items as “ABC01A”, “ABC01B” etc.

After input of values, Pres Enter. Batch Values from source plate are transferred to receiving items.

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The conversions are taken based on the batch classification or the Alternative UoM maintained in Material
master. For components, since weight would be known from drawings, its maintained at Material Master in the
“Additional Data” section.

In the example here, we have chosen component 1003-HALB-MAT4. For this component, KG to Piece
conversion is fixed and maintained at material master level (2 EA = 175 KG) as shown below. Hence 10 EA is
converted to 875 KGs.

For the second item in receiving, which, is a cut piece, since classification values are transferred from source
batch, 1 EA is converted to same conversion of 1068.225 KGs. The classification values for the cut piece have
to updated as per the actual cut piece values.

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Click on the Batch Classification Icon (Two bottles icon next to Batch field). The classification screen is shown
and you can notice that original batch values are shown.

Update these values as per the cut piece dimensions and shape. Here, for this example, we consider an odd
shape and fix the weight as 193.225 KG.

Click on the Forward arrow. The cutting stock transfer screen is shown again. Notice the remaining quantity
field – its shown as zero as the source weight is perfectly distributed among components.

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Suppose, the second receiving item is a perfect shape or odd shape with lower weight than 193.225, there would
be some remaining quantity left.

Click on the classification icon again and change the classification values and press on the forward arrow.

Notice the remaining quantity and also the options available in the drop down in the screen shot below.

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If we choose, option 1, Cost Center has to be maintained.

Press Check Button. Look for the message “Document is O.K.” in the status bar.

Press “Post” button to post the Cutting Transaction.

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The cutting stock transfer is posted and the material document is generated. The same document can be seen via
MB51 or MB03.

Go to MB51 and maintain the selection criteria – Enter the material as source material used above and plant as
the plant used above and posting date as the date the cutting transaction was performed.

The material document(s) is listed and double click on the material document generated in the cutting transfer.

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Click on the “FI Documents” button and the accounting information can be viewed.

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