Config - MM

MATERIALS MANAGEMENT (MM)
Table of Contents
SAP Hierarchy -- Materials Management .................................................................................................2
SAP Hierarchy -- Materials Management
SAP version used for this post: SAP ECC (ERP Central Component) 5.0
Key Org structure objects used by Materials Management are:
• Company (FI)
• Plant
• Storage Location
• Purchase Organisation
(the red crosses indicate links that are not allowed -- see notes below)
Q: Why do we set up SAP Organisational Structures (or SAP Hierarchy)?

• It roughly mimic the actual structure of the organisation
• Use for reporting purposes, examples:
"What are the current stock levels at storage location 0001?"
"I want to have a Balance Sheet for company 1000?"
• Use for authorisation purposes, examples:
"We don't want people in plant 1000 to receipt goods related to plant 2000"
• Master data is stored per organisational object, example:
- Valuation is on plant level, so if same material is in two plants the material will have two
accounting views (one per plant)
- If the same vendor is used by multiple purchase organisations it will have multiple purchasing
views
To keep it simple you want minimum amount of SAP Hierarchy objects (companies, plants, storage
locations, ...). Example: Don't just create a lot of plants -- always ask why, why, why?
Company Code
Set up on the FI side of SAP.

Required if we need to do external financial reporting.
All companys must have different codes (company code is 4 characters)
Questions to ask business:
• What are the legal entities of the business?
Plant
Used by all Logistics modules (MM, PM, PP, QM, PS,...)

Must be link to a company code. (only one)
All plants must have different numbers (plant number is 4 characters)
Questions to ask business:
• Where are the physical places (storage locations, distibution centres, ..) where materials are
handled?
• If using SAP PP, where are all the factories?
• How does the valuation (prices) of material differ between all these places?
• Reporting and authorisation requirements?
Storage Locations
Used by Inventory Management (and Warehouse Management)

Part of one Plant.
Storage locations within the same plant must have unique number (4 characters)
Questions to ask:
• Where are all the physical storage places (warehouses, tanks, ...)
Purchase Organisation
A plant must have a purchase organisation (one or more)

The link to company code is optional. If a Purchase Organisation is link to a company code, it can only
be used by plants within that one company code.
Contracts / Pricing are done in the purchase organisation.
It consists of people (purchasing groups) that manage the purchasing function.
Purchasing views in vendor master is per Purchasing Organisation
Questions to ask:
• What is company structre of contract negotiators and buyers?
• Is the same vendor used by only some buyers?
Plants can also be linked to a default Purchase Organisation. This is used for example in "Auto PO
create (when doing GR)" functionality, so that the system knows what P.Org to use. This link is only
required if these functionalies are used.
CONFIGURATION IN SAP
Creating and Assigning (linking) Plants
First create a plant by copying an existing plant:

IMG: Enterprise Structure > Definition > Logistics > Define, copy, check Plant
Select Activity: Copy, delete, check plant
No assign the plant to a company code:

IMG: Enterprise Structure > Assign > Logistics > Assign Plant
Creating Storage Locations (within plants)
IMG: Enterprise Structure > Definition > MM > Maintain Sloc

It is also possible to give a storage location "address" information (optional)
Create and Assigning (linking) Purchase Organisations
Create the purchase organisation

Then link it to the plants where it will be used.
It can also be link to a company code (this only takes place if the P.Org will be used plants linked to
this company code).
Link to default Purchase organisation (if required)

Split Valuation
Without split valuation, materials are valued at plant level.
With split valuation, the same material number at a plant can have different stock quantity and value
for different groupings (called valuation types).
The valuation types are set up in configuration could be for example:
• new, old or
• GB, US, AU, ... (indicating countries for example)
• red, blue, black, etc.... (indicating colors for example)
The valuation typs are grouped together in a valuation category
So for example, the above valuation types could be grouped by age, country, color.
A material is activated by entering the valuation type in the accounting view of the material master.
IMPORTANT: It is only possible to change a material (valuation category) if no stock and PO were
created. So it is not something that get changed at will. It needs to be decided on creation of material.
Steps to set it up
CONFIGURATION
1. Activate Valuation
2. Create Valuation Category
3. Create Valuation Types
4. Link Categories > Types
5. Link valid Valuation Categories to Plant
MASTER DATA
1. Activate Split valuation for a material
(Add Valuation Category in material master)
2. Create Accounting views for every valuation type
Using Split Valuation in transactions
1. Create Purchase Order
2. Goods Receipt / Goods Issue
3. Physical Inventory
4. Stock Overview
-------------DETAIL------------------
In this example we want to group material in the same plant based on AGE (valuation category). We
will have two "groups" (valuation types): OLD and NEW.
Configuration
IMG: Material Management > Valuation > Split Valuation
1. Activate Valuation - tcode OMW0
Configure Split Valuation - tcode OMWC
2. Create Valuation Category

Select: Global Categories
The Ext Mandatory option will force users to enter a valuation type in purchase orders.
Select: Create (to save)
3. Create Valuation Types
Select: Global Types > Create
Select: Create (to save)
The Purchase Orders attributes option indicate if PO's are allowed or not.
1 - Not allowed
2 - Allowed but with warning
3 - Allowed
The account category reference determines what GL valuation classes will be allowed.
4. Link Categories > Types

Select: Global categories (from main config menu)
Select: Valuation Category
Select: Types > cat.
Activate valid valuation categories
5. Link valid Valuation Categories to Plant

Select: Local Definitions (from main config menu)
Select: Plant to use
Select: Cats -> OU
Select: Valuation Categegory and press Activate
ACTIVATE MATERIAL MASTER
1. Activate Split valuation for a material

(Add Valuation Category in material master)
Material Master create - MM01
NOTE: It is only possble to change a material (valuation category) if no stock and PO were created. So
it is not something that get changed at will. It needs to be decided on creation of material.
2. Create Accounting views for every valuation type - mm01

USING SPLIT VALUATION IN TRANSACTIONS
1. Create Purchase Order - ME21N

2. Goods Receipt / Goods Issue - MIGO
4. Physical Inventory - example MI10
Note that the batch field is used!
5. Stock Overview - MMBE

Maintaining Market Price
Where does it get used in Standard SAP?
In SAP Vendor Evaluation, the Automatic calculation of points for price based sub criteria
compare the Market Price with Actual price in Purchase Order. In standard SAP, Market price
is per Purchase Org + Info Rec Category + Material.
How to maintain the market price?
Tcode mekh or mek2

Condition type MP01 (Market Price)
Can one keep track of changes to information?
Audit log of all changes are kept, see sample below:
Two-step movement Plant to Plant
Within SAP Inventory Management, there are two methods how stock are moved between plants using
a 2-step process:
• Stock Transport Orders (UB)
• Transfer Posting
What does 2-step mean?
Example: Let’s assume stock is moving from Plant A (Storage Location 0001) to Plant B (storage
location 0002).
Two step means that two transactions will be used to move the stock. After the first transaction, stock
has left plant A but it is not yet available at Plant B. Only after the second transaction is it available for
use in Plant B.
Some reasons for using 2-step movements (and not 1 step):

• Long time span between leaving Plant A and arriving at Plant B
• Need to control when goods leave plant A but not received at plant B
Using Stock Transport Orders (STO)
Steps:
• Create a Stock Transport Order (ME21N, Purchase Order doc type UB)
• Process Goods Issue against STO (MIGO > Goods Issue > PO) – movement type 351
• Process Goods Receipt against STO (MIGO > Goods Receipt > PO) – movement type 101
The use of Planned Orders and Purchase Requisitions are optional.
Using Transfer Postings (TP)
Steps:
• Process a Transfer Posting (MIGO > Transfer Posting) – movement type 303
• Process a Transfer Posting (MIGO > Transfer Posting) – movement type 305
The Transfer Posting can be done with reference to a Reservation. Although this is not used a lot.
Similarities between Stock Transport Orders (STO) and Transfer Postings (TP)
• Both use transaction MIGO for both steps
• After first step, goods are already reflected in receiving plant and not available
Differences between Stock Transport Orders (STO) and Transfer Postings (TP)
• Movement types are different
351 & 101 for STO
303 & 305 for TP
• Stock types at receiving plants are different
- In Transfer (MARC-UMLMC) for TP
- Stock in Transit (MARC-TRAME)for STO
• For STO, 351 and 101 is group together where for TP there is no link between 303 and 305
• STO requires more transactions than TP
• STO must be configured for the sending plant / receiving plant where no plant specific
configuration exists for TP
• STO is based on Stock Transport Order (type of Purchase Order). Where no purchasing
document is used for TP
• STO can be initiated with a Planned Order or Purchase Requisition
• Planning (MRP) can be used to initiate movements, but only STO’s
Configuration required to use STO
Config: MM > Purchasing > Purchase Order > Set up Stock Transport Order > Assign Document
Type, One-Step Procedure, Underdelivery Tolerance
Here the source plant, destination plant and allowed STO document type is specified.
Adding fields to Material Document List (MB51)

Within Inventory Management, the material document list transaction is used to list material
documents. It is a very popular transaction.
The selection fields can be changed in configuration.

For example: We want to add the "Order" field to the selection screen.
Selection screen before change
Transaction MB51 - Material Document List

Observe -- there is no "Order" field.
Screen after change
Transaction MB51 - Material Document List

This time with the "Order" field in the selection.
Configuration required
Config Menu > Materials Management > Inventory Management > Reporting > Define Field
Selection for Material Document List
Material Master: Material Type configuration
When creating a material, you need to specify the material type.
The Material type is the highest level of categorization of material masters.

Material Types defined in configuration and below is a summary of main areas that material type
influence:
• Number range of material master and if it is internal (system allocated) or external (user allocate
number)
• Which fields in material are mandatory / read only / optional
• User departments (Views in material)
• Purchase Orders allowed
• Valid valuation classes
• Quantity and Value update (does it update stock qty and value)
• Is it a pipeline material or not
• .... and many more
Standard SAP Material Types include:
ABF - Waste
CH00 - CH Contract Handling
CONT - Kanban Container
COUP - Coupons
DIEN - Service
ERSA - Spare Parts
FERT - Finished Product
FGTR - Beverages
FHMI - Production Resource/Tool
FOOD - Foods (excl. perishables)
FRIP - Perishables
HALB - Semifinished Product
HAWA - Trading Goods
HERS - Manufacturer Part
HIBE - Operating supplies
IBAU - Maintenance assemblies
INTR - Intra materials
KMAT - Configurable materials
LEER - Empties
LEIH - Returnable packaging
LGUT - Empties (retail)
MODE - Apparel (seasonal)
NLAG - Non-stock materials
NOF1 - Nonfoods
PIPE - Pipeline materials
PLAN - Trading goods (planned)
PROC - Process materials
PROD - Product groups
ROH - Raw materials
UNBW - Nonvaluated materials
VERP - Packaging
VKHM - Additionals
VOLL - Full products
WERB - Product catalogs
WERT - Value-only materials
WETT - Competitor products
The main configuration of material type is in transaction OMS2

IMG: Logistics > Material Master > Basic Settings > Material Type > Define Attributes (OMS2)
Some settings can be done per plant
This information resides in:
T134 - Material Type
T134T - Material Type: Text
T134M - Material Type: Valuation area data
For number range configuration, the transaction is:

IMG: Logistics > Material Master > Basic Settings > Material Type > Define Number range (MMNR)
First create a Group

Then link the material type to it
This is the main settings of material type. In later articles, we will address other configuration that can
be be done per material type.
HOWTO change the Materials Type of a material master

In some cases it is possible to change the Material Type of a Material Master.
Prerequisites:
• Configuration of both material types must be similar (see transaction OMS2 - Material Type
configuration)
• There should be no open PO’s against this material
• There should be no valuated stock against this material
• There should be no open line items against vendors for this material (see transaction FBL1N -
Vendor Line Item display)
Material Type can be changed using transaction MMAM
Menu: Logistics > Material Management > Material Master > Material > Change Material Type
(tcode MMAM)
• Type in material master number
• Indicate new Material Type
• Execute
A message will indicate if it was successfull or not. And if not why. For example here it failed due to
valuated stock and open purchase orders that exists.
Default GL account in account assigned Purchase Requisition
When creating a Purchase Requisition, it is possible to default a GL account based on Material group.
This is set in configuration:
IMG: MM > Purchasing > Material master > Entry Aids for Items without an material master
The GL account itself is link to the Valuation class in T030 (tcode omwb)
If the Entry Aids (default valuation class per material group) are not found, one can also set a default
GL account in T030 by leaving the Valuation class blank. (First row in above example).
Blanket Purchase Orders

In SAP, Blanket Purchase Orders refer to the business process where you have a Purchase Order with a
validity period (start / end date) and a limit on the item. No Goods Receipt takes place. Payment is
triggered by Invoice.
Multiple invoices can be processed. Main point is that invoices must be processed within the validity
period spesified in PO. The total value of invoices must also not exceed the limit spesified in PO item.
The validity period is spesified on PO Header Level, while the Limit is on Item level. The creation of
Purchase requisition is Optional.
Purchase Requisitions doesn't have validity period fields, although the limit can be spesified on item
level. So if users create PR's then they could type the validity period simply as text in one of the long
text fields.
During invoicing, if the date is outside validity period or the amount is bigger, either a Warning or
Error will occur. This setting is done in customising.
Examples on where this business process can be used include: Services: example buying flowers,
travel. Perticular if the receipt process is not very formalised. It is also sometimes used for utilities
(water, electricity...).
Look at processes where Financial invoices (no PO) are used. To improve control, a lot of vendor
invoices could be moved to Blanket Order process.
Lets look at key fields in the Purchase Order

The Overall Limit is the value that will be used to in the check during invoicing. If Commitment is
switched on in Costing, the Expected value is the value of the commitment against in this case the Cost
Centre. The actual will be posted during invoicing.
Account assignment is mandatory, so this process is non stock purposes only. Stock can not be
procured using this method (For stock a GR is required).
Because no Goods Receipt (GR) will take place, the GR indicator is switched off when the item
category is selected.
Very basics of SAP External Service Management
Firstly -- SAP External Service Management (ESM) must not be confused with SAP Service
Management (SM). ESM is the procurement of services. SM is to provide services to a client.
With External Services, you have a PO for services with Goods Receipt taking place. The Goods
Receipt is called Service Entries. In contrast with goods (stock or non stock) where receiving is
typically done by the inventory management group, the Service Entries are done by business
themselves. The logic is that the business generated the request for the service, that is where it was
done, it will be best if they do confirmation that service took place.
Lets look at the traditional SAP purchasing cycle vs SAP purchasing cycle for External Services.
The big difference is that the item category is D (services) is used. For the item, detail Service to be
performed can be specified. The receiving is a 2 step process. Create and then Accept Service Entry
Sheet
Lets step through the process and look at the documents. The steps are
Step 1 - Create Purchase Requisition
Step 2 - Convert to Purchase Order
Step 3a - Service Entry Sheet
Step 3b - Acceptance of Service Entry Sheet
Step 4 - Invoice and payment (not shown here)
----------------- DETAIL -------------------
Step 1 - Create Purchase Requisition
What makes the PR a ESM PR is the Item category. For goods it is blank. For ESM it is D (Service). if
the item category D is selected, it is mandatory to provide the account assignment.
Step 2 - Convert to Purchase Order
The PR is converted to a PO. If me59 (automatic creation of PO) is used, the Material Group must also
be entered in the selection criteria, otherwise it doesn't work.
Step 3a - Service Entry Sheet

When creating a SES, the planned services can be copied from the original Purchase Order.
Where:
- P Plan - Items copied from Purchase Order
- C Unplanned from Contract - Items copied from Contract (was not in PO)
- U Unplanned - Items was not in PO
Step 3b - Acceptance of Service Entry Sheet
This is the equivalent of a Goods Receipt. The result of accepting a SES will be a material document
with movement type 101 (GR against PO). Depending of process the SES can be created and Accepted
by different people. Typically the acceptance is done by a more senior person.
A traffic light indicate the status of the SES

- Red = Not yet accepted -- only SES
- Yellow = Accepted but still to be saved
- Green = accepted and saved
Additional notes on External Service Management
Release procedure and SES

Release procedures can be build in PR, PO and Service Entry Sheets. (Also possible on Outline
Agreements and RFQ's)
Service Outlines
The services in the PR / PO can be specified in a hierarchy. See this post for more information on this.
Outline Agreement (Contracts)

Services specified in PR / PO as well as Unplanned Services entered in SES can be pulled from a
contract (Outline Agreement).
Service masters & Service Conditions

The services can either be free text or Services Masters (similar to material masters for goods). The
prices for these services are stored in Service Conditions. Lots of SAP customers start using ESM
without Service Masters. And even if Service Masters are used, one do not need to use Service
Conditions.
Lets look at a simple Service Master
Account Assignment U
Under special cases (if allowed), an account assignment U (Unknown) can be selected when creating
the PR / PO. In this case the correct account assignment category must be provided when the service
entry sheet is created.
Configuration
The focus on this post is to introduce the concept, so no configuration options are discussed. See below
for config options related to this functionality. Config Menu: IMG > Materials Management >
External Services Management
Transactions
The following transactions were used for above screens:
ME51N - Create PR
ME21N - Display PO
ML81N - Create Service Entry Sheet
ML82N - Change Service Entry Sheet (Acceptance)
AC03 - Maintain Service Master
Setting up simple Release Procedure for Purchase Requisitions

Release Procedures (approval) can be used for Purchase Requisitions (PR), Purchase Orders (PO),
RFQ's, Outline Agreements and Service Entry Sheets. The principle is exactly the same for all. If you
can master one, you will know them all.
Lets set up release procedures for PR for the following example:
Our company have got 2 plants: Plant 3600 (London) and plant 3100 (New York).
• For New York (plant 3100), if PR item value is between 0 - 1000 dollars, then PR needs to be
released by one person (person B)
• For New York (plant 3100), if PR item value is bigger than 1000 dollars, then PR needs to be
released by two people (first by person B, then person C)
• For London (plant 3600), if PR item value is bigger than 1000 dollars, then PR needs to be
released by two people (first by person A, then person C).
Key terminology:
• Release Codes - The different levels that the approval will go through.
• Release Groups - Grouping of strategies.
• Release Strategy - Unique, set of condition, sequence and levels of releases. Every line in
diagram is a Strategy (so we have 3).
• Release Indicator / Status - The status of PR as it moves through the strategy. Example 'Block'
(can't create PO yet) or 'Final Release' (can create PO from PR)
Here is a summary of the steps to follow to set up our example:
• Create Characteristics & link to comm. structre (CEBAN for PR)
• Create Class & link to characteristic
• Create Release Groups & link to class
• Create Release Codes
• Release Indicator
• Set up strategies
- Strategies & Codes
- Prerequeirements
- Status
- Assign values for strategies
• Set overall / item for doc type (PR only)
• Create and allocate autorisation profiles
--------------- DETAILS OF SETTING IT UP ---------------
Create Characteristics & link to communication structure (CEBAN for PR)
Here we define which fields are used to determine the strategy that will kick in. In our case we used
'Plant' and 'Item value'. Not all fields in the PR can be used. For a full list of fields that can be used to
determine the release startegy, see tcode se12 table CEBAN.
So the two fields that will be used is:
Field CEBAN-WERKS for Plant

Field CEBAN-GSWRT for Item Value
We need to create a characteristic for every field. tcode ct04

Any characteristic name can be used. Keep something descriptive to avoid confusion.
For Item Value -- lets create characteristic Z_GSWRT

First go to Additional Data tab and enter the table/field (and Enter)
Enter currency to be used in the Basic data tab.

Also select multiple values and Intervals allowed
The Intervals allowed will allow us to assign a range of values, example: If PR value is 0 - 1000
USD .....
Save the characteristic
For Plant -- characteristic Z_WERKS

Again, the table/field name in Additional Data to enter table/field
Again set multiple values and save the characteristic
The multiple values is to assign more than one plant to strategy, example: If PR for plant 3100 and
plant 3600 is ...
Create Class & link to characteristic
Create a class (simply to group the characteristics). Again any name can be used. Tcode CL01 -- Create
Class. The Class Type must be 032.
Configure Release Procedures
Above actions was all master data. We now need to do some configuration. Menu: IMG > Materials
Management > Purchasing > Purchase Requisition > Release Procedure > Procedure with
classification > Set up procedure -- (tcode OMGQ in older SAP versions)
Create Release Groups & link to class
We have two groups to create AA and AB. We need to indicate the class we are working with, in out
case Z_PR.
Create Release Codes
Create all the release code / group combinations. This is all the dots in diagram above. So we have 4.
Later on, authorisation profiles will be linked to these code / group combinations.
Release Indicator
First we create the different statusses that the PR can be in throughout it lifecycle. Later on (below), we
will be linking using these statusses. Here is the standard SAP indicators, wou probably wouldn't need
to add any.
We will be using two of these -- X (Block) and 2 (Released)

Under the Details section, you can indicate which documents can be created from this PR. For Indicator
2, one can create PO's and RFQ's.
With Field Selection you can define which fields can be changed. This is the same indicator that gets
used with document type configuration to make some fields read only, mandatory, hidden.
Set up strategies - Strategy & Codes

Every line in our diagram above is a strategy. So We have three
Lets call them:
Group AA / Startegy S1 -- Code L1 (for plant 0001)
Group AA / Startegy S2 -- Code L1 & L2 (for plant 0001)
Group AA / Startegy S2 -- Code L1 & L2 (for plant 0002)
Here are the settings for AA / S2
Set up strategies - Prerequisites
Fir every strategy, we need to define a release prerequisites. This indicate if one code need to take place
before the other. In this case, level 2 (L2) can only take place if level 1 (L1) has been released.
Set up strategies - Status
This is also done for every strategy. The screen is dependant on what groups were linked to the strategy
as well as prerequisites that was set up. In this example:
- if nobody release it then PR is block.

- if L1 release the PR, the PR is still blocked
- if L1 and L2 release the PR, the PR can be converted to RFQ/PO
Out of interest, the reason why there is not a L2 only option is because of the setting in the
prerequisites.
Set up strategies - Values for strategies
The values linked to strategies are master data (not configuration) and can be set in two places. Either
within the configuration itself -- selecting the classification button
Or, in classification, example CL24N
Both methods work, the advantage of CL24N is that all the strategies can be viewed easier.
Set overall / item for doc type (PR only)
For Puchase Requisitions, there is an option to release either on item level or on document level. For
PO / RFQ / Contracts, one can only release on header level. Back to the PR, it is highly recommended
to use item release. This can be done in two places.
Firstly where the groups were created

On the document type configuration for PR
Config menu: Materials Management > Purchasing > PR > Define document types
Create and allocate authorisation profiles
In our example we will have three people releasing, so three profiles will need to be created.
Authorisation profiles can be created using tcode PFCG.
Usage of PFCG are not being discussed here, but see below for relevant screen where the profile was
created.
--------------- USING RELEASE PROCEDURES ---------------
Create a Purchase Requisition
Lets create a PR, and see if the release procedure kicks in. In our case we will create it for plant 3600
and any value. So we will expect Strategy AB / S2 to kick in.
Create PR -- me51n
If no 'Release strategy' tab, then it didn't work. In this case all is fine. The user can see the Release
Group (AB), Strategy (S2) and release indicator (X).
(SAVE)
Release a Purchase Requisition
Releasing can be done per PR or collective. Lets' use the collective release. SAP Menu: Logistics >
Material Management > Purchasing > Purchasing Requisition > Release > Collective Release --
ME55
Select all the items to be released and then hit Save. You will see the status of the item change to the
next Release Indicator.
This is the absolute basics of setting up Release Procedures for Purchase Requisitions.
MRP run using Re-order Point planning
T his post is for some of you who have never done a MRP run on SAP and want to get a very
simple example going.
Simple steps
1. create material (or change existing)

2. View current stock on hand
3. Run MRP for the material
4. Evaluate MRP run (View results of MRP run)
Step 1 -- Create / change material
Transaction mm01 (create material) or mm02 (change material) if material exist
Ensure that material is created with at least the following views: Basic data, purchasing, MRP 1,
Storage, Accounting. Enter Plant / Sloc as required.
The key information for this demo is the MRP screen. Here is the one that I created.
The key MRP parameters are the MRP Type and Lot Size.
MRP Type - Defines when the rule used to determine WHEN the PR or Planned Order will be be
created.
Lot size - Determine calculation to be used to determine the QUANTITY in the PR or Planned Order
For my simple demo I will use standard SAP MRP type = V1 and Lot size = HB
For V1 (Manual reord.point w. ext.reqs

) a re-order point must be spesified, make ROP = 100.
For HB (Replenish to maximum stock level) a maximum level must be spesified, make Max value =
1000.
Step 2 -- View current stock on hand.
For this you can use Stock Requirement List (MD04)

Make sure that your ROP is higher than your current stock on hand, otherwise MRP willl not create
any documents. In this case Stock on hand (20) < ROP (100), so MRP will suggest you purchase stock.
Step 3 -- Lets run MRP.
Do a single item run. Use transaction MD02 (Single Item, Multi Level MRP run). The Single Item
means for one material only. Multi Level refer to all levels of Bill of Material (BOM). This is not
relevant in our example.
Step 4 -- Lets evaluate results of MRP run.
Use Stock Requirement List again (transaction MD04)
You should now have a Purchase Requisition or Planned Order for a quantity to take stock up to
maximum level (as was spesified in material master).
Configuration related to MRP
As mentioned -- main MRP parameters are MRP type and Lot Size.
Configuration for MRP Type.

IMG Menu: MM > Consumption Based Planning > Master Data > Check MRP Type
Configuration of Lot Size
IMG Menu: MM > Consumption Based Planning > Planning > Lot-Size calculation > Define Lot Size
Using MRP Areas
Normally materials planning take place on PLANT level.
By using MRP areas – specific storage locations can be grouped together and planning take place on
that grouping (the MRP Area).
Example: Plant 3200 / Sloc 50 and Plant 3200 / sloc 51 in one MRP Area
This is done in Configuration.
When activated, materials can now be planned (MRP types, Lot size, etc…..) per MRP Area. And MRP
runs can also be done on MRP Area.
Consumption history will be kept on MRP Area level.
Material Master data
When creating / changing materials – you will see MRP Areas in MRP1 view
Material data fields on MRP Area level
How to use MRP Areas – Running MRP
When you run MRP, you can run it either for PLANT or MRP AREA.
Example: For a material
• For Plant 3200, set MRP Type = V1, ROP = 300

• For MRP Area 3200_1 (within plant 3200), set MRP Type = V1, ROP = 100
If we run MRP for Plant 3200, SAP creates a PR of qty 300 (because ROP = 300).
If we run MRP for MRP Area 3200_1, SAP creates a PR of qty 100 (because ROP = 100)
Consumption History
Consumption History is stored on the lowest level either Plant or MRP Area level.
If MRP Area = plant then Consumption History is available in

Menu: Display Material (MM03) > Additional data > Consumption
Example for plant 3100 (where MRP area is on PLANT)
For MRP Area 3200_1, this information is accessed via MRP1 view.
Tables where consumption data are stored:
• Table MVER --> Plant Level
• Table DVER --> MRP Area level
Configuration to take place in order to use MRP Areas
Start of by looking at SAPNet for notes on MRP Areas.
Steps to follow:
Step 1: Convert planning file entries (SE38 program RMDBVM00)

THIS IS DONE ONCE OFF
Program: RMDBVM00
Step 2 Activate requirements planning for MRP areas
Step 3 Define MRP Areas
The Receiving storage location is the default sloc that will be in PR that was created by MRP.
A MRP area consists of one or more storage locations. This is where they are defined.
Serial Numbers and materials
Serialization is a way to keep track of individual items (material masters). When processing
transactions, example Goods Receipt, Physical Inventory, etc.. you don't just type in material
and quantity but also the serial numbers of the individual items. Serial numbers is a unique
number that identify an item. Example if quantity is 2, one need to indicate serial numbers of
the two items. A report is available to show all movements for a spesific serial number.
Lets go through a simple example to do a Physical Inventory posting on a material where we

activate serial numbers.
Setting up -- Master data
A material is activated in Plant / Data Storage 2 view of material master. Field MARC-
SERNP .The options (serialization profiles) are set up in configuration and define how it will
be used (see below).
Using it in transactions
Lets look an an Inventory Management transaction for this material, transaction MI10 to do a
stock adjustment and see where the serial numbers are used.
For this material, serialization is active, so the system force you to enter the serial numbers of
the items, in this case the quantity was 2, therefore 2 serial numbers
Lets look at stock overview -- tcode mmbe and see if the serial numbers are visible.
Showing all the serial numbers
Double clicking on the serial number take you to transaction IQ03 -- serial number per
material.
History of all inventory management transactions related to this serial number are visible by
hitting the 'History' button
Setting up -- Configuration
IMG Menu: Sales and Distribution > Basic Functions > Serial Numbers > Determine Serial
Number Profile - tcode OIS2
For every profile, one needs to specify the area in SAP where it will be used and how it will be
used.
Serial number usage:
01 - None
02 - Optional
03 - Obligatory
04 - Automatic
Equipment required indicates if a equipment is required.

01 - Proposal without equipment
02 - always with equipment
SAP MM Tables
Materials
MARA - Material Master: General data

MAKT - Material Master: Description
MARM - Material Master: Unit of Measure
MAPE - Material master: Export control file
MARC - Material master: Plant data
MARD - Material master: Storage location
MAST - Material link to BOM
MBEW - Material valuation
MLGN – Material Master: WM Inventory
MLGT – Material Master: WM Inventory type
MDIP - Material: MRP profiles (field contents)
MKOP - Consignment price segment (old versions of SAP)
EBEW - Valuation of sales order stock
QBEW - Valuation of project stock
MVER – Material Master: Consumption <Plant>
DVER – Material Master: Consumption <MRP Area>
MVKE – Material Master: Sales <Sales Org, Distr Ch>
MLAN - Material Master: Tax indicator
MARC - Material Master: Plant data
MAPR – Material Master: Forecast
MARD – Material Master: Storage Location
MCH1 – Material Master: X Plant Batches
MCHA – Material Master: Batches
MCHB – Material Master: Batch Stock
MDMA - MRP Area data
DBVM - MRP Planning File Entry: MRP Area
MOFF - Outstanding Material Master Records (Maintenance status)
MARCH - Material Master C Segment: History

MARDH - Material Master Storage Location Segment: History
MBEWH - Material Valuation: History
MCHBH - Batch Stocks: History
MKOLH - Special Stocks from Vendor: History
MSCAH - Sales Order Stock at Vendor: History
MSKAH - Sales Order Stock: History
MSKUH - Special Stocks at Customer: History
MSLBH - Special Stocks at Vendor: History
MSPRH - Project Stock: History
MSSAH - Total Sales Order Stocks: History
MSSQH - Total Project Stocks: History
Vendors
LFA1 - Vendor Master: General data

LFB1 - Vendor Master: Company data
LFM1 - Vendor Master: Purchasing Data (Purchasing organization)
LFM2 - Vendor Master: Purchasing Data (Plant, Vendor sub-range)
Purchasing
EBAN - Purchase requisition: items

EBKN - Purchase Requisition: account assignment
STXH - SAPScript Text Header
STXL - SAPScript Text Lines
EKKO - Purchasing document header

EKPO - Purchasing Document: Item
EKET - Purchasing Document: Delivery Schedules
MDBS - Material View of Order Item/Schedule Line (good to find open PO's)
EKKN - Account assignment in purchasing document
EORD - Purchasing Source List
EIPA - Order price history record
EKAB - Release documentation
EKBE - Purchasing document history
EKBZ - Purchasing document history: delivery costs
EKPB - "Material to be provided" item in purchasing document
ESKL - Account assignment specification for service line
ESKN - Account assignment in service package
ESLH - Service package header data
ESLL - Lines in service package
ESSR - Service entry sheet header data
ESUC - External services management: Unplanned limits for contract item
ESUH - External services management: unplanned service limits header data
ESUP - External services management: unplanned limits for service packages
ESUS - External services management: Unplanned limits for service types
EINA - Purchase Info Record: General

EINE - Purchasing info record: purchasing organization data
KONP - Condition Item
KONH - Condition Header
Inventory Management
ISEG - Physical inventory document items
MKPF - Material document: Header

MSEG - Material document: item
RKPF - Reservation: Header

RESB - Reservation: Item
Invoice Verification
BSIM - Secondary index: documents for material

MYMFT - FIFO results table
MYML - LIFO material layer
MYMLM - LIFO material layer (monthly)
MYMP - LIFO period stocks, single material
MYMP1 - Receipt data LIFO/FIFO valuation
MYPL - LIFO pool layer
MYPLM - LIFO pool layer (monthly)
RBCO - Document item, incoming invoice account assignment
RBDIFFKO - Invoice Verification: conditions
RBDIFFME - Invoice Verification: quantity differences
RBDRSEG - Invoice Verification batch: invoice document items
RBKP - Document header: incoming invoice
RBKPB - Invoice document header (batch invoice verification)
RBTX - Taxes:incoming invoice
RBVD - Invoice document: summarization data
RBVDMAT - Invoice Verification: summarization data, material
RBWT - Withholding tax:incoming invoice
RKWA - Consignment withdrawals
RSEG - Document item, incoming invoice
Customising and other master data
MDLV - MRP Areas

MDLG - MRP Areas - Storage Locations
MDLW - MRP Areas - Plants
MDLL - MRP Areas - Subcontractor
T023 - Material Groups
T024 - Purchasing groups
T030 - Standard Accounts Table (Automatic Account Determination)
T156 - Movement Type
T156T - Movement Type: Text
AUSP - Release Procedure: Strategy values (cl20n, cl24n)

AGR_USERS - Assignment of roles to users
CDHDR & CDPOS - Change history of master data and documents
EDID4 - EDI information
TSTC - SAP Transaction Codes, lock/unlock: sm01, created: se93
TSTCT - Transaction codes TEXT
NAST - Message status

MM Sample Q&A
ORGANISATIONAL STRUCTURES
1. Which of the following are examples of Organizasional elements in SAP?
(more than one answer can be correct)
1A Company Code
1B Material
1C Vendor
1D Purchase Organisation
1E Plant
MASTER DATA
2. A material master has been created for material 1234 in Plant 1000. You want to extend the
material master to Plant 1100 for Purchasing, Storage and Accounting. Which transaction
would you use?
2A Change Material Master record.

2B Create Material Master record.
2C Extend Material Master record.
2D Display Material Master record.
2E Maintain Material Master record.
PURCHASING
3. You wish to procure a material using a Purchase Order. You wish to take delivery of the
material at different times. A graduated discount scale exists for the material. How do you
proceed if you wish to take advantage of the discount arrangement?
(Only one answer is correct)
3A Enter several order items with the same material number and different delivery dates.
3B Enter one order item with the material number and assign the material to different accounts.
3C Enter an order item with the material number and create a number of schedule lines.
3D Enter a number of purchase orders for the material and specify different delivery dates.
3E Enter an order item with the material number and in the Purchase order header text field you
specify the delivery dates and discount scales.
MATERIALS REQUIREMENTS PLANNING
4. To view the most up to date planning data (available stock, orders, reservations, etc.) on a
material, use the:
4A Stock Overview report.

4B List display of material and accounting documents.
4A Stock Overview report.
4B List display of material and accounting documents.
4C MRP list.
4D Stock Requirement list.
4E Standard Analysis for a material
5. A material forecast can be used by the following MRP types:
5A Manual Reorder point planning.

5B Automatic reorder point planning.
5C Forecast based planning.
5D Time phased planning.
5E Storage location MRP
6. Materials planning can be set to automatically generate:
6A Contracts.
6B Purchase Requisitions.
6C Purchase Orders.
6D Planned Orders.
6E Delivery Schedules.
7. The following are lot sizing rules available for SAP R/3:
7A Fixed lot size.

7B Replenish to maximum stock level.
7C Weekly lot size.
7D Daily lot size.
7E Economic order quantity.
PURCHASING
8. Purchase Information records can be created or updated from:
8A Purchase Requisitions.
8B Purchase Orders.
8C Quotations.
8D Contracts.
8E Source Lists.
9. Which of the following apply to Purchase Orders?

9A The vendor must be specified in the Purchase Order Header.

9B All materials on a purchase order must be procured through the same purchasing group.
9C All materials on a purchase order must be of the same material group.
9D Discounts and surcharges can be maintained in the document header.
9E Discounts and surcharges can be maintained at line item level.
10. Which of the following is an Account Assignment category?
10A Material Group.

10B Purchase Requisition.
10C Sales Order.
10D Release Code.
10E G/L Account
11. Which of the following are Item Categories?
11A Consignment.
11B Service.
11C Manufacturing.
11D Cost Centre.
11E Subcontracting.
12. Which of the following documents can be subject to release (approval) procedure?
12A Planned Order.

12B Purchase Requisition.
12C Scheduling Agreement.
12D Purchase Order.
12E RFQ.
13. In Source lists the following can be sources of supply:
13A Vendor.
13B Contract.
13C Scheduling Agreement.
13D Quotation.
13E Quota Arrangement.
14. With automatic source determination, in which sequence does the SAP R/3 system search for
possible sources of supply?
14A Source List, Quota Arrangement, Contract, Information Record.

14B Quota Arrangement, Contract, Information Record, Source List.
14C Quota Arrangement, Source List, Contract, Information Record.
14D Source List, Contract, Quota Arrangement, Information Record.
14E None of the above.
15. Which of the following documents can be printed in SAP?
15A RFQ.
15B Purchase Order.
15C Service Entry Sheet.
15D Purchase requisition.
15E Contract.
16. Which of the following document types can appear in the purchase order history for a
purchase order line item?
16A Another purchase order.

16B A goods receipt material document.
16C A service entry sheet.
16D An invoice.
16E A release procedure.
17. in which ways can purchase requisitions be created?
17A From contracts.

17B From source lists.
17C From material requirements planning.
17D Manually.
17E From delivery schedules.
18. A vendor has agreed to give your company a discount on all purchases during the festive
season. What would be the quickest way of specifying this discount?
18A Maintain the pricing conditions in all information records with the vendor to indicate the discount.
18B Maintain the pricing condition in all contracts with the vendor to indicate the discount.
18C Maintain the pricing conditions in the vendor master record to indicate the discount.
18D Maintain all source lists that uses the vendor to indicate the discount.
18E Maintain extended conditions against the vendor to indicate the discount.
19. A purchase order has been placed with a vendor for 100 pieces of material 1234. An over
delivery tolerance of 5% has been specified for the material. The vendor has already delivered 20
pieces of material 1234 against the purchase order. When posting the next goods receipt against
the purchase order, the SAP system will propose the following quantities of material 1234 for
goods receipt:
19A 0 pieces.
19B 85 pieces.
19C 20 pieces.
19D 100 pieces.
19E 80 pieces.
20. A purchase order has been placed with a vendor for 100 pieces of material 1234. An over
delivery tolerance of 5% has been specified for the material. The vendor has already delivered 95
pieces of material 1234 against the purchase order. The delivery complete indicator has been set
for the material in the purchase order. When posting the next goods receipt against the purchase
order, the SAP system will propose the following quantities of material 1234 for goods receipt:
20A 0 pieces.
20B 100 pieces.
20C 10 pieces.
20D 5 pieces.
20E No goods receipt will be allowed against the purchase order.
21. You want to create a purchase order for external services. At the purchase order line level:
21A The account assignment category for “Cost centres” or “Orders” must be used.
21B The item category for “services” must be specified.
21C The account assignment category for services must be specified.
21D The item category “unknown” must be specified.
21E The account assignment category for “text items” must be specified.
22. Purchasing pricing conditions can be maintained in:
22A Contracts.
22B Purchase orders.
22C Source lists.
22D Information records.
22E Quota Arrangements.
INVENTORY MANAGEMENT
23. Reservations can be created for:
23A Goods receipt for purchase order.

23B Goods receipt without a purchase order.
23C Goods issue to a cost centre.
23D Scrapping.
23E Transfer of stock from quality inspection to unrestricted stock.
24. Stocks can be withdrawn from the stores for consumption to a cost centre:
24A From quality inspection stock.

24B From blocked stock.
24C From goods receipt blocked stock.
24D From unrestricted use stock.
24E From In-Transit stock.
25. Normal stock items that are received with reference to a purchase order can be received into:
25A Quality inspection stock.

25B Block stock.
25C Goods receipt block stock.
25D Unrestricted use stock.
25E In-Transit stock.
26. Which of the following stocks belong to a vendor, but are stored on your company’s
premises?
26A Materials provided to a sub contractor.

26B Vendor consignment stock.
26C Returnable transport packaging.
26D Block stock.
26E Stock in transit.
27. Which of the following stock types can be counted through Physical Inventory procedure?
27A Unrestricted use stock.

27B Block stock.
27C Quality Inspection stock.
27D Vendor consignment stock.
27E In-transit stock.
28. A cost centre has reserved a quantity of a stock item for issue. When issuing the stock with
reference to the reservation, the following quantity is proposed:
28A Total available plant stock for the material.

28B Total available storage location stock for the material.
28C (A) or (B), whichever is the smallest.
28D Total reserved quantity on the reservation.
28E Open quantity on the reservation (Reserved, but not issued)
MATERIAL VALUATION
29. Which of the following cab possibly influence the valuation price of a moving average priced
material?
29A Goods receipt for a purchase order.

29B Goods Issue to a cost centre.
29C Invoice verification against a purchase order.
29D Stock transfer between two storage locations in the same plant.
29E Transfer posting from unrestricted use stock to quality inspection.
REPORTS
30. Variants can be used to:
30A Define default report formats such as column width and sort sequence.
30B Save reports.
30C Automatically execute reports.
30D Combine multiple reports into a summarized report.
30E Store user defined selection criteria for reports and analysis.
31. The following are examples of characteristics in the LIS
31A Plant.
31B Material.
31C Order quantity.
31D Month.
31E Total stock value.
GENERAL
32. In the SAP system a user can operate in the following hierarchies.

32A Service level.
32B Application level.
32C Main menu level.
32D Month.
32E Total stock value.
ORGANIZATIONAL STRUCTURES
33. In cross plant procurement a purchase organisation procures material and services for:
33A Several purchasing groups.

33B Multiple plants belonging
33C Multiple plants belonging to the same company code.
33D A single plant belonging to different company codes.
33E One specific plant.
34. After a material master record has been created:
34A Only the views created can be displayed.

34B Information in new views can be added by changing the record.
34C The material number cannot be changed.
34D All information is stored at plant level.
34E The material type is displayed in the Basic data view.
35. The material type will determine the following?
35A Which views can be maintained.

35B The procurement type allowed for the material.
35C The valuation class.
35D The short text description.
35E All of the above.
CLASSIFICATION
36. The following terminology applies to the classification system:
36A Object value.

36B Class.
36C Item.
36D Object.
36E Characteristic value.
MATERIALS PLANNING
37. The main aim of materials planning is to determine:
37A The total sales figures for a given period.

37B The buyers responsible for ordering materials.
37C The difference between ordered quantities and consumption.
37D The requirement of specific quantities of materials at specific times.
37E The quantity of material required in order to make a profit.
38. Once a planned order is generated by materials planning:
38A It can only be converted in to a production order.

38B It can be converted into a purchase order.
38C It can only be converted into a purchase requisition.
38D It can be converted into a purchase requisition or purchase order.
38E It can be converted into a purchase requisition or production order.
39. Which of the following are true about Consumption Base Planning?
39A Future requirements are calculated from past consumption values.

39B Unforeseen consumption activity is covered by safety stock.
39C It is useful for A type materials (in the ABC analysis of materials).
39D It is assumed that the requirements will fluctuate.
39E It is particularly applicable to internally procured materials.
40. Your planning department is using a Forecast Model for materials planning. It has been
established that while demand for the particular material is projected to increase steadily as
market share is increased, the fluctuating tourist demand will affect the overall requirements.
Which forecast model will best address this requirement?
40A The Constant model.

40B The Constant trend model.
40C The Seasonal trend model.
40D The Fluctuating trend model.
40E The Seasonal model.
41. In backward scheduling for external procurement:
41A The GR processing time is calculated in calendar days.

41B The planned delivery time is calculated in work days.
41C The planned delivery time is set at plant level.
41D The PO processing time is material specific.
PURCHASING
42. Which of the following statements are true with regard to RFQ’s and Quotations?
42A Each RFQ and quotation must have a separate number.

42B An RFQ can be created manually or with reference to purchase order.
42C By comparing vendor quotations, the system can determine a ranking list.
42D Conditions attached to quotations can be saved as info records.
42E Unsuccessful quotations can automatically be rejected.
43. In the SAP system, the reference document used in the purchasing cycle is the:
43A Purchase requisition.

43B Info record.
43C Source list.
43D Purchase Order.
44. Which of the following statements are true about SAP purchasing documents?
44A All purchasing documents have header items and line items.
44B Purchase requisitions cannot be printed.
44C An account assignment category must be entered for a consumable material.
44D The item category defines which process is used to procure a material.
44E A vendor cannot be assignment to a purchase requisition.
45. Which of the following statements apply to release procedures?
45A Only purchase requisitions, purchase orders, RFQ’s and contracts can be blocked.
45B Blocked purchase orders can be sent to vendors but the order cannot be receipted.
45C More than one user may be required to release the document.
45D Blocked documents can be released collectively or individually.
45E Release purchase requisitions can be printed.
46. Which of the following apply to conditions?
46A An info record, quotation and outline agreement conditions are master conditions.
46B Conditions are item specific.
46C Master conditions can be set for a future date.
46D Conditions determine the effective price of a material.
46E A special anniversary discount from a vendor could be an extended condition.
47. In SAP purchasing contracts, which of the following statements are true?
47A A value contract has a validity period but a quantity contract has not.
47B Contracts can only be created referencing an RFQ, another contract or requisition.
47C Item category M (material unknown) cannot be used for value contracts.
47D When creating a release order, item categories M and W must be deleted.
47E A centrally agreed contract can be used to negotiate better prices from a vendor.
48. As of SAP release 4.0, the following are true for scheduling agreements:
48A JIT scheduling must be used for time critical materials.

48B Schedule lines can be created automatically via MRP.
48C With agreement type LPA, the delivery schedule cannot be changed.
48D You are liable for all costs of a cancelled delivery in the trade off zone.
48E Account assignment categories must be determined in scheduling agreements.
49. Source lists can be maintained in the following ways:
49A Manually.
49B While creating a contract.
49C Automatically.
49D With reference to a purchase order.
49E from another source list.
50. If a source list is flagged as mandatory in the material master record:
50A All materials purchased in the same plant require source lists.
50B A material can be purchased without a source list if a contract exists.
50C The material can only be procured from vendors in the source list.
50D The material can be purchased from any vendor as long as a source list exists.
50E A requisition for the material can be created without a source list.
51. Your organisation has purchasing agreements with more than one supplier of a particular
material. When using automatic source determination on SAP system:
51A A quota arrangement will determine the cheapest source.

51B Internal procurement cannot be supported with quota arrangements.
51C The vendor selected by the quota arrangement has the highest quota rating.
51D Manually created requisitions can be split if the lot sizing key ES is set.
51E Quota arrangements take precedence over other purchasing documents.
52. Your system is configured to support your buying department in automatic source
determination. Which of the following statements are true?
52A A material master record must exist for a source to be determined.

52B A vendor cannot be used if it is blocked in the source list.
52C A quota arrangement, source list or outline agreement must exist.
52D If the regular vendor is set in customising, this vendor can only be used.
53. Purchase requisition 0100000023 has been created. You wish the system to convert this
requisition automatically into a purchase order. After running the transaction you receive an
error. What are the possible reasons for the error.
53A A vendor has not been assignment to the requisition.

53B The requisition is blocked at header level.
53C The automatic PO indicator has not been set in the source list.
53D The assigned vendor is blocked in the source list.
53E A material master record for this material does not exist.
54. A purchase order can be created on the SAP system:
54A Independently of any other purchasing documents.

54B Only if a requisition, outline agreement, or quotation exist on the system.
54C As a release order if it created with reference to a contract.
54D Without entering a purchasing group if a vendor master exists.
54E By converting a requisition by a planning run.
55. When creating a vendor master record, the account group determines, among other things:
55A Whether internal or external number assignment is required.

55B Which fields must be entered in the selected views.
55C The material you can purchase from this vendor.
55D Which partner roles are valid with this vendor.
55E The maximum order quantity you can place with the vendor.
56. When creating a purchase order for a material with a material master record:

56A The net price will be suggested from the accounting view.
56B It is not necessary to enter a purchasing group/
56C A stock transport order can be created if the material is made by your company.
56D The short text and material group do not have to be manually entered.
56E The plant or plants will be suggested automatically by the system.
INVENTORY MANAGEMENT
57. In the SAP system, which of the following activities are covered by inventory Management?
57A Goods issues.

57B Goods Receipts.
57C Reservations.
57D Consignment.
57E Subcontracting.
58. A delivery arrives at your warehouse for which no purchase order exists. In the SAP system,
which of the following options are available to you:
58A depending on the movement type, the system can generate a purchase order.
58B The item can only be received if the goods are non valuated.
58C You have to return the goods as a PO must be referenced with a goods receipt.
58D Receive the goods to block stock if the value is indicated on the delivery note.
58E The goods are received into GR blocked stock.
PURCHASING
59. A service master record contains the following:
59A A material master number.

59B Text.
59C A base unit of measure.
59D Conditions.
59E A valuation class for account determination.
60. A service entry sheet can be captured against:
60A Purchase requisition.

60B Outline agreement.
60C Purchase Order.
60D Master Service Schedule.
60E Invoice.

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MATERIALS MANAGEMENT (MM)

Key Org structure objects used by Materials Management are:

Q: Why do we set up SAP Organisational Structures (or SAP Hierarchy)?

Set up on the FI side of SAP.

Used by all Logistics modules (MM, PM, PP, QM, PS,...)

Used by Inventory Management (and Warehouse Management)

A plant must have a purchase organisation (one or more)

First create a plant by copying an existing plant:

No assign the plant to a company code:

Creating Storage Locations (within plants)

IMG: Enterprise Structure > Definition > MM > Maintain Sloc

Create and Assigning (linking) Purchase Organisations

Create the purchase organisation

Link to default Purchase organisation (if required)

The valuation types are set up in configuration could be for example:

1. Activate Valuation - tcode OMW0

Configure Split Valuation - tcode OMWC

2. Create Valuation Category

Select: Create (to save)

4. Link Categories > Types

5. Link valid Valuation Categories to Plant

ACTIVATE MATERIAL MASTER

1. Activate Split valuation for a material

2. Create Accounting views for every valuation type - mm01

1. Create Purchase Order - ME21N

4. Physical Inventory - example MI10

Note that the batch field is used!

5. Stock Overview - MMBE

Where does it get used in Standard SAP?

How to maintain the market price?

Tcode mekh or mek2

Audit log of all changes are kept, see sample below:

Two-step movement Plant to Plant

What does 2-step mean?

Some reasons for using 2-step movements (and not 1 step):

Using Transfer Postings (TP)

Adding fields to Material Document List (MB51)

The selection fields can be changed in configuration.

Selection screen before change

Transaction MB51 - Material Document List

Transaction MB51 - Material Document List

When creating a material, you need to specify the material type.

The Material type is the highest level of categorization of material masters.

The main configuration of material type is in transaction OMS2

For number range configuration, the transaction is:

First create a Group

HOWTO change the Materials Type of a material master

This is set in configuration:

Blanket Purchase Orders

Lets look at key fields in the Purchase Order

----------------- DETAIL -------------------

Step 1 - Create Purchase Requisition

Step 3a - Service Entry Sheet

Step 3b - Acceptance of Service Entry Sheet

A traffic light indicate the status of the SES

Release procedure and SES

Outline Agreement (Contracts)

Service masters & Service Conditions