SAP ERP

Master Data
In
Material Management
 Topics

• Types of SAP users

• Master Data

• Why we need Master Data

• Vendor Master Data

• Material Master Data

• Configuration
 Types of SAP users

• End Users

• Supper user, they are 1st level support

• SAP consultant, they look after for 1st, 2nd, and 3rd level support
 Master Data
Master Data represents the business objects that contain most valuable, agreed upon
information shared across an organization. In SAP R/3 system Data stored can be categorized
in three types

1. Master Data

2. Transaction Data

3. Configuration Data

1. Master Data:

Master Data is the core data that is used as a base for any transaction to perform
any business activity like, Production, transferring stocks, physical inventory,
Whatever activity may be, it required certain master data to be maintained.
Example Vendor, and Material Master.

2. Transaction Data

Any business transaction for example Production Order, Purchase Order, Invoice etc are the
Example of transaction data.

3. Customizing Data

Customizing the system as per business need is termed as customizing data

 Why we need Master Data?
We required Master Data because if we not maintained it we need to enter the data again and
again when we are making any business transaction. It will save our time performance of
execution any business transaction faster.
Example when we create purchase
order T-Code: ME21 N as you
enter vendor number,
organizational data in the PO
header. The system automatically
pick the vendor name and other
relevant of vendor because of we
have maintain vendor master data
, if we not maintain we need to
enter all data manually when
create a purchase order for a
vendor. It will consume lot of time
and performance will be slow
down. Same way when we enter
Material number in Item overview
enter PO quantity plant and
storage location as we press enter
the system pick data automatically
because of material master
record, other wise here also need
to enter all data manually every
time if not maintain any material
master record. This the reason of
having master data record is
essential to make any business
transaction smooth and faster with
less efforts.
 Vendor Master Data

Vendor Master Data is a record of

information about a particular vendor.
Vendor master record having three views:

1. General Data:
Name, address and contact details of a
vendor, bank details.
2. Company Code Data:
Here we enter the finance related data,
like account person, reconciliation
account no,
Account management and payment
transactions correspondence with
holding taxes.
3. Purchasing Organization Data:
Purchasing data, currency partner roles
 Create Vendor Master Data
T-Code: XK01-Create,XK02-
Change,XK03-Display
Menu Path
SAP Easy access screen➔ SAP
Menu➔ Logistics➔ Material
Management➔ Purchasing➔
Vendor➔ Master Data➔ Central➔
Create
Example
Enter Company code-2019
Purchasing Organization-2011
Account Group press enter –KRED
Enter Reconciliation A/c 160000
T-Code: XK01-Create,XK02-
Change,XK03-Display
Menu Path
SAP Easy access screen➔ SAP
Menu➔ Logistics➔ Material
Management➔ Purchasing➔
Vendor➔ Master Data➔ Central➔
Create
Example
Enter Company code-2019
Purchasing Organization-2011
Account Group press enter –KRED
Enter Reconciliation A/c 160000
Enter Order currency
Click on GR Based Invoice
verification
Acknowledgement required

Click on save Vendor number

100658 Created message display by
the system.
T-Code: XK02- Change if you wish to
make any changes,
XK03- If you wish to display vendor
data

If you not know the vendor number

click on right side square on vendor
field you can search vendor
Vendor Master Data we have three
types of data
Organization Level in Vendor
1. General Data
2. Company Code Data
Master Data
3. Purchasing Data

In small company that can be

maintain by one person it is
possible. But in a big company
MM Procurement Purchasing
Department can only generate
General Data and Purchasing
Data.
Account Group: Account Group
Account group is a grouping of the
similar accounts in to a single group.
Each account group is assigned to a
chart of accounts, we can use only
the account group if the controlling
areas use the same chart of
accounts. In SAP Account group
specifies following:
• The account number range interval
from which the account number is
selected when creating General
Ledger master record.
• Its determine the status of vendor
it is regular vendor or one-time
vendor.
• Determine the field selection.
• Partner schema
• Vendor sub-ranges or plant
specific data
•Type of number range assignment
For example We are using account
group is KRED According to NR
when I create Vendor Number will
be in between Number interval
100000 – 199999
One-Time Vendor
One-time Vendor
One-time vendor from whom we are
purchasing single time or very rarely
we purchase from him termed as
One-time vendor. One Standard
vendor number can be used for any
new purchase order. For example
1. Electrician
2. Plumber
3. Order a stationary

To create One -time Vendor T-

codeXK01
Enter Company Code 2019
Purchase Org 2011
Account Group- CPD NR is 02
Vendor Number will be in NR
Interval 1000000 – 199999
Enter the relevant data then click on
save system display message one
time vendor no 100659 is created
for company code 2019,
purchase org 2011
One-Time Vendor How create PO
no 100660 by using One-
T-code: ME21N
Enter
time Vendor
Vendor No 100660
ORG DATA
Purchase Org 2011
Purchase Group R20
Company Code 2019
Item No
Quantity, order unit of
measure, price and currency,
plant storage location
condition in condition after
enter all data when click on
check system display the
message to enter vendor
address, this is because of
we are using One-time
vendor that’s the reason
when we will create
purchase order at that time
we will enter the vendor
address. Because system
know address will be the
different
One-Time Vendor
no 100660
As we enter address of
vendor in address tab then
go to check button system
display the message
Click on save

Message display the created

PO Number
One-Time Vendor

So if we are using regular vendor to create a purchase order the system will copy
the address and other relevant data from vendor master record. But when we are
using One-time vendor the system knows the vendor will be different for each
transaction so its address tab is blank so it is clear whenever using one time vendor
master record you need to enter the vendor address and contact details manually,
We are only making one time purchasing only from this vendor.
 Reconciliation Account for Vendor Master
Reconciliation Account

Reconciliation Account is a General ledger

account assigned to the business partner
master record to record all transactions in
the sub ledger, Posting to the sub ledgers
are get posted to the assigned
reconciliation account in SAP by which the
General Ledger will always be updated.

Reconciliation account creation is a

prerequisite for creation of vendor master.
Every transaction in an account of a sub-
ledger is automatically posted to the
General Ledger. This integration
guaranteed by the reconciliation account
in SAP.

Reconciliation account ensures that the

total all General account balances is
always zero. This is a prerequisite for
creating balance sheet at any time.
Common reconciliation account can
be assigned to several customers. It
is display on the balance sheet
under item Sundry Debtors.

Several reconciliation account is

required if you want to have
different account balance s
separately in balance sheet for
example domestic receivable, or
foreign receivable.

When crate a vendor master in

accounting information tab to assign
Reconciliation account to vendor is
mandatory if we left blank the
system will give the error we can not
create vendor master record
without it.

The Reconciliation account number

is provided by the Finance
Department.
 Partner Role

Partner Functions/ Roles

The following partner roles are used

in Material Management
• Vendor (VN)
• Ordering Address (OA)
• Goods Supplier (WL)
• Invoicing Party (IP)
Vendor (VN): Name and address of
vendor address of vendor (role LF) .

Ordering Address: If you define

another partner for the partner role
Ordering address BA, a standard
Purchase Order or release order will
not be sent to the address of
vendor(role LF) but to the ordering
address of the partner.

Goods Supplier: In the case of

Intrastate:
If you define a partner from another
member state of EU for partner of
goods supplier (WL).
standard PO or release order will be taken into account when Intrastate declaration are
created. In the case of return delivery: if you define another partner role goods supplier (WL)
the addresses of the Goods supplier will be determined for return deliveries in inventory
management.

Invoicing Party (IP : If you define another partner for Invoicing Partner (role IP), the invoicing
account will be charged instead of the vendor account.

These all Partner functions/roles can be by same vendor having their business activity at
different geographical locations, and a business can have different business partner for each
partner roles.

There are more Partners Functions/Roles are as follows

Order Recipient (OR)Different Payee (AZ), Contact person (CP), Employee responsible (ER),
Intrastate declaration GS)

Partner determination :

Partner determination can be used for price determination, message determination, address
determination, statistics. If you define a lot of partner roles, you can select one of them like a
default. When some one creates a purchasing document, default value is seen in the lists.

To use partner determination will need to define partner schema for purchasing document .
When define schemas, the previously created partner roles are assigned to the schema. If
account group is assigned a partner schema, SAP checks whether a role you enter in schema
or not. You will get an error message, if SAP does not find related role.
Define Partner Schema

T-Code: SPRO➔ Material Management➔ Purchasing➔ Partner Determination➔

Partner settings in purchasing documents/Define Partner schemas

To save our time for same account group we can create new vendor by copying
from existing vendor system copy most of the data from the existing one accept the
name address that we need to enter the address of desire vendor which master
record we need to create this will take less time create new vendor master record
for new vendor.
Blocked a Vendor

If we are not happy from the

service of a particular vendor
for that we need to delete the
vendor master record there is
an other option SAP has given
we can use blocked function
to prevent no one can create
any purchasing transaction
with that blocked vendor if
some to create purchasing
order for that vendor system
will give the error message
and transaction can not be
completed.

To Blocked a vendor T-Code is

XK05 (Block) and delete
Vendor Master record
completely from the system T-
Code is XK06 (Delete)
Block A Vendor T-
Code: XK05
Enter Vendor No
Company code,
Purchase Org click
on which posting
and purchasing
block you want to
make if then select
reason of block then
click on same
vendor will be
blocked by the
system.
If you create the PO
for same vendor it
will give error
Delete a vendor
T=Code XK06
System not delete
the vendor record
completely from the
system flag mark for
deletion is highlight
when you will be
create PO for that
vendor system will
display an error
message
Exercise Create Vendor
Master Centrally
Click for next
Create a vendor master T-Code:
XK01 screen sequences will be as
follows
1. Enter Company code
2. Purchasing Organization
3. Account group
You can create Vendor
1. Direct press enter
2. In second option create vendor
master record with reference to
existing one you need to enter
Reference Vendor number
Company code
Purchasing Organization
1, We will create Vendor Master
without reference
Vendor no will be blank it will assign
by the system NR interval will
assign to the Account group in
configuration it will create the
number between that NR 02
Interval 100000 – 199999 It is
Internal no
Here Vendor No Internal system will
generate the vendor number with
in the NR which assign to
account group KRED Address
screen enter all details contact
number
Exercise Create Vendor
Master Centrally
Next screen
Exercise Create Vendor
Master Centrally
Next screen
Exercise Create Vendor
Master Centrally
2nd Option in Create New
Vendor with reference
T-Code XK01 – Most of the
control data system will
copy from reference
vendor master record
address screen will be
blank system knows
address and name of
vendor will be different
enter name and address
Next screen enter,
reconciliation account and
purchasing data system
has pick from reference
record click on save system
display the message
Create Vendor Master
By using T-Code MK01
In this you will find not all
screen will be display like
when we create a Vendor
Master by using T-Code:
MK01Main difference is
Company code field
disappear
Create Vendor Master
By using T-Code MK01
Next screen
Create Vendor Master
By using T-Code FK01
Difference in screen
Create Vendor Master
By using T-Code FK01
Next screen
Create Vendor Master
By using T-Code FK01
Next screen
Display The List of
vendor T-Code MKVZ
Display The List of
vendor T-Code MKVZ
 Material Master Record

A material is used by different

departments in a business. For
example if we are producing a
product name XYZ. That same
product data is used by following
departments
1. Sales and distribution
2. Material Management
3. Production
4. Accounting
5. Warehouse Management
6. Forecasting and others
department………

The name of product is same for all

department there for we
maintain different views in
Material Master record.
Material in SAP is a logical representation of certain Goods, Semi-Finished Goods, Raw
Materials or services that is an object of production, sales and purchasing, inventory
management etc.

All the information for all materials on there on their potential use an characteristics in SAP are
called Material Master. Material Master Data is most important master data in SAP. There are
also customer master data, vendor master data, conditions/pricing master data etc. All the
processing of the material is influenced by material master. This the reason need well maintain
and updated material master record.

For that we need to understand about material master views and implications on processes in
other modules., business transactions and few more helpful information like tables that store
material master data., transactions for mass material maintenance

To create Material
T-Code: MM01-Create, MM02-Change,
MM03-Display
Menu Path:
SAP Easy Access➔ SAP Menu➔ Logistic➔
Material Management➔ Material Master➔
Create General➔ Immediately
 Material Number Range
Material

In SAP material is identified by a unique number. It can be defined a

• Internal Number range which system generate a number for material automatically when
we create a any material master record.
• External Number Range which we need to enter external number before creating material.

We can choose above single option and we can choose both option for material number.

To define a Number Range

T-Code: MMNR
Internal Number Range: We have Material Group RJMM following Material Type is assign NR
06 Internal NR Interval is 10000000-200000000 material Number will be between this range.
Material Number External

If we create a material by choose material type

FERT we can give external number and system can
generate the internal number because for this
material type we have assign NR 01 which is
Internal and assign NR 02 which is alpha batic is
external we can give external our own
alphanumeric no when create material by using
material type FERT
Material Type:
Material Type
In SAP ERP, every material has a characteristics called
“material type” which is used throughout the system for Material Type Material Type
various purposes. Description
1. Material type represents a type of origin and usage. It FERT Finished Product
can be Finished Product (ready to use), Semi-Finished
(can be as a part to produce finished product), Trading HALB Semi-Finished
goods (for resale), raw material (to produce semi- Product
finished or finished product). It can be packaging
material to pack the finished , semi-finished or a raw HAWA Trading Goods
material. Packaging material can be returnable or
non-returnable. ROH Raw Material
2. SAP has given standard material types we can customize
VERP Packaging Material
and can create our own material type. We can use standard
material type also.
What can configured on Material Type level?

1. Material master view: It defines the view associated

with a material type. Example material type FERT
assigned to our product 0000 we don’t need to have
purchasing based views for that material we don’t
need to purchase our product, it can be configure on
material type level.
2. Default Price Control: we can set this control to
standard or moving average price. This can be change
in material master level to override default setting,
3. Default Item Category Group: It is used to determine
item category in sales document. It can be change in
material master to override the default settings.
4. Internal/External Purchase Orders: Special material
types indictors, and few more can see in MM01-Create
Material Master Transaction.
Material Types Control the followings
Industry Sector: Industry Sector
It is control the screen
selection and field selection.

The industry sector

determines : which screens
appear and in which order.
Which industry specific fields
appear on each screen. The
industry sector you assign a
material can not
subsequently be changed.
 Material Management View

Implication of MM Views on standard SAP System

Material Management Views

1. Basic Views
2. Classification View
3. Sales Organization Data 1
4. Sales Organization Data 2
5. Sales General/ Plant View
6. Purchasing
7. Purchase Order Text
8. Foreign Trade /Export View
9. MRP 1
10. MRP2
11. MRP3
12. MRP4
13. Plant Storage Data 1
14. Plant Storage Data2
15. Warehouse Management 1
16. Warehouse Management 2
17. Quality Management
18. Accounting1
19. Accounting2
20. Additional Data
 Material Master Organizational level
Organizational level
Material – Note book

Plant – 2019
Storage Location – 0001
Sales Organization – 2019
Distribution Channel – RJ

• This data is valid for whole company:

Example, material number, material short text,

material description, material group, base and
alternative unit of measure…

• Data is valid with in one plant:

For example, purchasing data, MRP data, Forecasting

data, work scheduling data, ….

• Data that is valid for one storage location:

For example storage bin description, picking area,…

 Create a Material
T-Code: MM01
Enter Material Number External
Note Book
View selection depends upon
Material Type it is FERT- Semi
finished Goods View selection will
be as under:
Select View (S)
• Basic Data 1
• Basic data2
• Sales Org 1
• Sales Org2
• Sales: General/ Plant Data
• MRP1
• MRP2
• MRP3
• MRP4
• Accounting1
• Accounting2
• Costing1
• Costing2
Organizational Data
Plant-2019
Storage Location-0001
Sales Org-2019
Distribution Channel RJ
• Basic Data 1
Basic Unit measure PC,
Material Group
Gross Weight--- , Net Weight
Weight unit – Kg

Basic Data -2
Tex Data – 1 (Full tax for Germany)
• Sales Org 1
Basic Unit measure PC,
Material Group
Tex Data – 1 (Full tax for Germany)
• Sales Org/ General Plant Data
Transport Group -0001
Loading group - 0002

• Purchasing

Purchasing Value Key -1

• MRP 1
MRP Controller 003
MRP Type – PD
Lot size-ZX
• MRP2:
•Procurement type- X
Scheduling In-house Production 2 d
GR Processing 3 Scheduling key 001
• MRP 3
Period Indicator M Availability
Check -01

• MRP4
• Accounting 1
Currency - EUR
Price Control (S)
Standard Price-900

• Accounting 2
Costing 1
Costing 2
Additional Data Tab:

Click on save Material NOTE BOOK created

 Extending a Material Master
To extend the material to another plant
T-Code- MM01

1. Same Material Number from Plant

2019 to 2020
2. Same Material Number different
storage location in same plant
3. Different Plant and location with
different number
Click on save

Material Master be extended

Copy a Material Master
Entry aids For Material Master
 Settings
T-code: MM01

Go to Default Settings on Menu

Bar➔ Industrial Sector
Which Industrial Sector you
choose that will be open by
default when you go on t-code
MM01
➔Material Type→ which material
type will you choose that will be
come by default on mm screen
➔ Views which View you will
select that will be high lighted
when go on MM 01 screen
➔ Organizational Data which you
maintain that will be appear by
default when you go transaction
MM01
➔ Copy from data also you can
maintain as default
 Create Material with
T-code: MM01 Reference Material
We can create a material by the
reference from which is existing
in the system.
T-Code: MM01
 Profile
Profile is created if we are using
same MRP every time for our
plant we can create a MRP Profile
T-code: MMD1-Create, MMD2-
Change,MMD3-Display

Menu Path
SAP Easy Access➔ SAP Menu➔
Logistics➔ Material
Management➔ Material Master
➔ Profile➔ MRP Profile➔ Create
Create Material MM01

MRP Profile
RS which we have
created
 Collective entry for Storage Location

T-Code: MMSC –Extend storage

Location of material
Enter Material
Plant Press Enter
Enter Desired Location s then
click on save

We can extends a material

collectively for different locations
it consume less time.

MM02
Material Note Book
Select View
Org Level
Plant
Click on Storage Location you will
find Material has extended to two
storage location 0001, 0002
 Mass Maintenance

T-Code: MASS we can change of

same value in a field one time in
multiple numbers of materials
ledger by using this transaction
if you have 1000 of data you can
copy it

Copy here all data

Click on execute
Click Here
Search the Required field
Right hand side
Enter the Number of days
you want to put select the
column and click on
All entry now change to 20

Click on Continue
Click on save
 Exercise Create Material

Create Material MM01

 Change Material
Change Material
MM02
View All Screen to
make changes if
required
Next Screen
Next Screen
Next Screen
Next Screen
Next Screen
Next Screen
Next Screen
Next Screen
Additional Data 1 Phone 1 Box→ 1 Carton – 6 Box→ 1 Pallet – 20 Carton
Create Material with reference to Smart Phone
Check Material List T-Code MM60
 Extend Material to others
Check Material List T-Code MMSC
storage location
 Mass Maintenance
Check Material List T-Code MASS
Thank You………………