SAP MM (Material Management) is a functional module in SAP that deals with procurement handling and material management. The MM module contains master data, system configuration and transactions to complete the procure to pay

The critical fields in purchasing view are

• Base unit of measure
• Order unit
• Purchasing group
• Material group
• Valid from
• Tax indicator for material
• Manufacturer part number
• Manufacturer, etc.

A batch talks about a quantity of a particular product, which is processed or produced at the same time with the same parameters. The materials produced in such batch have the same values and characteristics. While the batch record gives the information about a particular batch product and helpful in knowing whether the product has gone through GMP (Good Manufacturing Process).

To link the document with the vendor master record by using the XK01 transaction code or by using the following menu path

• SAP Menu > Logistics > Material Management > Purchasing > Master Data > Vendor > Central > XK01- Create.

• Purchase requisition > EKBN
• Purchase requisition account assignment > EBKN
• Release documentation > EKAB
• History of purchase documents > EKBE

The information record contains data related to the units of measurement, such as the products, vendor price, materials used by specific vendors, etc. It also contains information on the tolerance limit of the under delivery of data, vendor evaluation data, planned delivery time, availability status for goods.

The transaction code MSC2N is used to delete a batch. By flagging the batch master record, you can delete a batch record alternatively.

To extend the material view transaction, code MM50 is used.

The standard price for the material data cannot be updated or changed directly. However, to change the standard price you can perform the following steps

• Fill in the future fields price ( MBEW-ZKPRS ) and the effective data ( MBEW-ZKDAT) for the materials
• Select Logistics > Material Management > Valuation > Valuation Price Determination > Future Price

To identify sources of supply for materials a source list is used. To create a source list the transaction code used is ME01.

The pre-requisites for creating a purchase info record are

• Material Number
• MPN (Manufacturer Part Number)
• Vendor Number
• Organizational level code

Planned delivery means number of calendar days required to obtain the material, and GR processing means number of workdays required after receiving the material for inspection and placement into storage.

Purchase requisition in SAP determines both stock and non-stock items to the purchasing department. It can be done either manually or automatically, the document types used in purchase requisition are

• RFO ( Request For Quotation )
• Outline Agreement
• PO ( Purchasing Order )

In the normal purchase order or requisition, consignment stocks are created. While creating consignment stocks things to be considered is that you must enter K category for the consignment item. As a result, the goods issued are posted to consignment stores and invoice receipt is not generated.

First you have to observe the return column and then select — Item Detail > MIGO_GR > Goods Receipt for Purchase Order. Use movement type 161 if the intention is to deduct the stock otherwise, 162 is used to undo the changes. In the end, you have to ensure that the document is a return purchase order, and then the document is saved.

You can also use transaction code M21N for this purpose

To create vendor account group in SAP

• Select display IMG > Financial Accounting > Accounts Payable/Receivable >Vendor Accounts > Master Records > Preparation of creating vendor master records > Define Accounts groups with Screen Layout

Assignment of account is necessary for the purchase order item, it is important in SAP MM as it determines following things

• Account assignment type
• Account that will be charged when you post the invoice or goods receipt
• Account assignment data that you should provide

MRP list is the initial working document from which the MRP controller starts working, and it consists of planning results information for the material. For an individual item, you can access the MRP list by using the transaction code MD05. You can also access the MRP list by navigation path

SAP Menu > Logistics > Materials Management > MRP > Evaluations > MRP List- Material

CBP is the past consumption values of stock; it is used to forecast future requirements. On the basis of past consumption values, the net requirement of goods is calculated.

The difference between CBP and MRP is that when you plan materials using MRP, you have to predict the materials requirement based on sales and operations planning (SOP). While in CBP you have to predict the material, requirement based on historical demand for materials

A stock transfer from plant to plant generally takes place within a company code. It can, however, also take place between two company codes, if the plants are assigned to different valuation areas, which belong to different company codes. Unlike a stock transfer from storage location to storage location, a stock transfer from plant to plant affects both accounting and Materials Planning, as follows: Accounting: Accounting is affected if both plants are assigned to different valuation areas. This means that a stock transfer leads not only to a quantity update but also to a value update (stock value, G/L accounts). Thus, parallel to the material document for stock transfer, an accounting document is created. Materials Planning: Materials planning are affected because a change of plant stock is taken into account by Materials Planning Q.

RFQ/Quotation Purchase requisition Purchase order Master data (Info record, Source list, Conditions, Vendors etc.) Outline agreements

Material type is assigned to A/c Cat Ref.; A/c Cat. Ref is assigned to Val. Class; Val. class assigned to G/L A/c. Configuration: OMWM: Activate Val. grouping Code OMSK: Create A/c cat. ref and Val. Class; then A/c cat ref assigned to material type. OMWD: Val. area (plant) assigned to Val. grp. code (0001) OBYC: Assign Val. modifier (0001), New Val. Class and G/L A/c Now create new material and assign new val. class in accounting 1 data screen. Then create PO, GR.

Transaction code is OMJJ You can copy new movement type which is near-by old one. When we go to new movement type, if there is no possibility to done transaction with old movement type. Steps: 1) entry control data 2) short text 3) allowed transactions 4) help text 5) update control data 6) account grouping 7) reasons for movement

Condition type has an access sequence assigned to it which determines which tables to access for data and in what sequence. This has a sequence of table based on the most specific to most generic. It can be used for any new condition type creation.

The pricing procedure assigned to a vendor has a calculation schema attached to it. This schema defines the various conditions pre-requisite, calculation & sequence in the PO. Generally, only one type of pricing procedure is followed for all the vendors.

To create a pricing procedure, the steps will be Create Condition tables Create access sequence by placing the different condition tables from most specific to the most general. Create the condition types Assign the Access sequence to the condition type Create the pricing procedure Place all condition types in a sequential order as per the business requirement and pricing needs.

Consignment stock – vendor Components provided to vendor Project stock Consignment stock customer Pipeline material Orders on hand

Standard, Pipeline, Consignment, Subcontracting

Consignment stock is the material which is lying in the premises but is not owned by the Vendor. It has no value assigned to it until it is taken into own stock. Once it is used in production or to be sold, it is taken into own stock.

Consignment cycle is similar to a standard purchase cycle. The difference it that no accounting document is created at the time of goods receipts only qty is updated. It is settled once the same is utilized.

When the material is sent for subcontracting i.e. some value addition, it is converted into a different material. It needs a BOM to define the components of the finished item being received.

When the material is sent for subcontracting i.e. some value addition, it is converted into a different material. It needs a BOM to define the components of the finished item being received. The scrap or the process loss can be adjusted while doing a quality inspection of the material received after subcontracting.

products can be taken care of by defining them in the BOM.

101 GR in unrest. Use 103 GR in Blocked stock 105 Release from Block to Unrest. Use stock. 122 Return to vendor from unrest. Use stock. 124 Return to vendor from blocked stock 301 Plant to Plant transfer. 309 Material to Material transfer 311 Transfer from stg loc to stg loc 261 Issue for consumption 411 Taking consignment stock into own stock 551 Withdrawal for scrapping

A PR is an internal document that sends notification to purchase department when some material is service is required. PR can be generated by department that needs any material or service. A PO is a document sent to vendor by purchaser which is an official request of mentioned material or services. POs are generally binding on purchaser, though it depends on terms and conditions mentioned in PO.

The stock supplied by the vendor is in the purchasing company’s premises but the company has no liability for the same.  The liability for the company will only arise one the goods are issued from the consignment stock for use. However, in this case, even before the use, purchasing company can check in system how much stock is lying in inventory.

In Sub-contracting, we send raw material or input material to sub-contractor and then receive the finished goods. A sub-contracting PO is created with item category ‘L’. Input material is sent to vendor for processing with movement type 541. When GR is done using movement type 101, movement type 543 takes place automatically and takes care of consumed material.

When we maintain price in Info Records, we can make use of scales. It is used when price of a material is dependent on quantity purchased. For eg. For 500 pieces of material ABC, price is Rs. 10, however, if the order quantity is more than 500, price is Rs. 9. Scales are maintained in various master data like info record, quota arrangement etc. from where scales can be pulled in a Purchase Order.

A material must be flagged for deletion before deleting it using Archive and Delete program. A deletion flag can be set at client level, plant level or storage location level. Whatever level you flag a material for deletion, it is flagged for deletion at all corresponding lower levels. Transaction MM06 is used to flag a material for deletion.

Yes, even after flagging a material for deletion, it can be used till it is deleted. It will just trigger a warning message whenever the material is used. If you want a material to be blocked for any use with immediate effect, you should use a material status which is there in Basic View 1 for general level or in MRP 1 view for plant level blocking.

OBYC is t-code used for configuring Automatic Account Posting. Postings are made to G/L accounts automatically in the case of Inventory Management and Invoice Verification relevant to Financial and Cost Accounting.

Valuation grouping code is used to group the valuation area, In SAP, we can have valuation level at Company code level or at plant level. General practice is to use the valuation area at plant level, because valuation may differ from one plant to another. The valuation grouping code makes it easier to set automatic account determination. If we need to define common account determination for several valuation areas, we can assign same valuation grouping code to all those valuation areas. We can maintain the valuation group code in OMWD for various valuation areas.

Various special stock types available in SAP are Consignment, Subcontracting, pipeline, project, sales order stock, Returnable transport packaging, stock transfer, and the third party.

A contract is a pre-determined long-term agreement to supply material or service for a certain period of time. Specific delivery dates are not mentioned in the contracts. Contracts can be of two types: Value Contract or Quantity contract In Scheduling agreements, we can enter scheduling lines which gives details of quantity that should be delivered on specific date. Plant must be entered in SA so that materials can be delivered at plant. These are generally used for materials whose requirements are predictable.

New transaction codes can be created using t-code SE93.

Release Strategy with Classification: PR can be released at header level as well as item level. It can be used for both internal/external documents. Can be set on any field available in structure CEBAN Release Strategy without Classification: PR can be released only at item level. It can be used only for internal documents such as PR. This strategy can be used only on 4 parameters which are Account assignment category, Plant, Material Group and value of PR.

A batch is a subset of the total stock of a material. It represents a homogeneous unit which has unique specification. Normally, a batch is assigned to the quantity of material produced during a given production run. A batch number uniqueness can be assigned at any of the following 3 levels: At client level: The same batch number can be assigned only once   within the entire client. At material and plant combination level: Same batch number can be assigned to material with different specification in each plant. At material number level: A batch assigned to a material has the same specification for all plants where material is extended. Batch number can be reassigned with a different specification for each material.

While creating PO, we can tick the item as free item in item overview section of PO. The price will be zero for free marked item.

Accounting view is a plant specific view. Besides other information, it contains important information such as valuation class and price control. Valuation class helps in determining the relevant GL account used for account posting. It is also used while configuring OBYC settings. Price control indicator determines if material is maintained at Standard price(S) or moving average price (V).

‘Material Types’ is used to group various materials based on some common properties. It helps in maintain material master data for a particular material. Using material types, we can control which all views are required for a material type, which fields are required or optional, the material number range etc.

Partner Function is used to define responsibilities and duties of other business partners. Some partner functions are AZ(Alternate payee), CR(Carrier), OA(Ordering address), GS(Goods supplier), PI(Invoice presented by) etc.

Material Status helps in determining the usability of a material. It is a 2-digit code which can be maintained as plant specific material status, cross-plant material status, and distribution material status.

‘Price Control Indicator’ is maintained in accounting view and is used to determine how a material will be evaluated. It can be Standard Price(S) or Moving Average Price(V). If the indicator is set to S, all inventory postings are posted at standard price maintained in material master. If there are variances in any transaction due to different price, the variance is posted in price difference account. If price control indicator is set at V, goods received will be done at GR price. The moving average price will be adjusted in material master using weighted average formula. If goods movements or invoice receipts are posted using a price that differs from the moving average price, the differences are posted to the stock account.

The physical movement of stock between different physical locations is called as ‘Stock transfer’. Stock transfer can be either a single step process or a two-step process. Various Stock transfers are: Inter Company (Company to Company) Inter Plant/Intra Company (Plant to Plant) Intra Plant (Storage location to Storage location)

In SAP, commonly used stock types are: Unrestricted Stock (Stock that is available for use) Restricted Stock Quality Inspection Stock (Not the unrestricted stock but can be considered for MRP) Blocked Stock (Stock rejected by quality or production) GR Blocked Stock (Conditionally accepted stock. Not the unrestricted stock)

Physical Inventory procedures in SAP MM are as follows: Periodic Inventory (All stocks are counted on a pre-determined date) Continuous Inventory (stocks are counted continuously during the entire fiscal year) Cycle Counting (Counting is done at fixed intervals) Inventory Sampling (Randomly selected material stocks are physically counted on the balance sheet key date. If variances are small enough, it is presumed that the book inventory balances for the other stocks are correct.)

The purchasing view consists of RFQ / Quotation, Purchase Requisition (PR), Purchase Order (PO), Master Data that has several fields like info record, source list, conditions, vendors etc. and finally Outline Agreements.

Special stocks available are consignment stocks (from vendor), subcontracting stocks (to sun-contractor), project stocks, pipeline materials, sales order stocks, stock transfer and third party.

The steps involved in creating a pricing procedure are: 1. Create condition tables 2. Create access sequence according to the various condition tables 3. Create condition types 4. Assign access sequence to condition type 5. Create the pricing procedure 6. List down all the condition types in order so as to suit the business and pricing requirements

The various steps in consignment cycle are: 1. Create consignment info record with proper tax code 2. Create Purchase order with item category K 3. Create output condition record for KONS (output type) 4. Authorize Goods Receipt (GR) 5. Payment is settled through MRKO transaction even if invoice verification is not done

While a scheduling agreement is for consignment, subcontracting and stock transfer, a contract is for Standard items and can be limited to a certain quantity or value. A contract can be created centrally with different pricing conditions for every plant whereas a scheduling agreement needs to be created at that particular plant location. In a contract, only time-dependent conditions can be created whereas in a scheduling agreement, you can have time-dependent or time-independent conditions subject to the customizations in the document type.

MRP is short for Materials Requirements Planning and it is a production planning technique that’s used to manage the manufacturing process. It is basically used to determine your Material Planning procedure by specifying the various conditions like Reorder Point, Seasonal Requirement, Replenishment, Vendor Managed, Forecast Based and Master Production Scheduling (MPS). Lot size specifies the nature of material requirement in terms of Weekly, Monthly, Quantity and Maximum Replenishment.

A batch is a collection of similar items from your stock that have the same characteristics. For example, all food items produced on a particular day belong to one batch. Batches are searched using the standard facility (match code, key F4) based on the batch names or other properties that distinguish them from others.

In SAP, there are basically two types of shelf-life: 1. Total Shelf Life – In case the total shelf life is maintained, then it’s mandatory to enter the minimum shelf life also. During the process of Goods Receipt (GR), the user will have to enter the manufactured date of the item so that the expiry date is automatically calculated by the system. 2. Minimum Shelf Life – The date of minimum durability of the item are specified by using date markings like ‘use-by’ or ‘best-before’. During the process of Goods Receipt (GR), the user will have to enter the date of GR so that the system can check if the material is usable according to the requirements in material master. If the minimum remaining shelf life condition is not satisfied, then the system will not accept the goods receipt.

The GR blocked stock is an option used in the goods receipt process when you are not sure about the quality of the goods received. In such a case, the stock is maintained as GR blocked either from a material viewpoint or exclusively for a purchase order item.

Materials with some common attributes square measure sorted along and that they square measure assigned to a cloth kind. this can completely different materials and permit the organization to manage different materials in a very systematic manner following the company’s demand. (online training institute)

A serial variety is assigned to AN item to spot it and to store data concerning it. A serial variety is usually wont to seek advice from instrumentation like motors, drills, or vacuums. In MM, AN item of fabric contains a serial variety yet as a cloth variety. this mixture helps to unambiguously determine AN item of fabric.

Special stocks are stocks that are managed individually notwithstanding whether they belong to your company. the corporate manages a cloth by employing an information record, that contains all the desired data.

The different kinds of special stocks are as follows:

Sales order stock

Returnable packaging with client

Consignment stock at client

Vendor consignment stock

Returnable transport packaging

Subcontracting

Pipeline

Organizations would like negative stock once a cloth is shipped to a client and production isn’t confirmed or there’s not enough stock to satisfy the necessity. The system still permits the issuance of the fabric, and inventory shows a negative amount of stock till the assembly of the fabric is confirmed.

the highest level of the structure is that the shopper, followed by company code, that represents a unit with its own accounting unit. consecutive level down plants wherever procurable activities turn up. A plant can turn out merchandise and makes merchandise offered for the corporate. The buying organization is wrongfully liable for procurable transactions. This cluster is additionally divided into buying teams.

during a traditional buying system, the client purchases the products from the wholesaler/retailer, and therefore the possession of the products transfers from the wholesaler/retailer to the client. This may not be the case with special Procurement sorts, wherever the transfer of products might not essentially be from the wholesaler/retailer to the client directly. as an example, you would possibly order a decent for a devotee of yours, who, in turn, purchases the products from the wholesaler/retailer so transfers the great to you. The friend is that the third party concerned during this method. Therefore, the possession of the fine indirectly transfers to the client. sort|this sort|this kind} of procurement is termed the special procurement type. The special procurement kind defines the external procurement or in-house production of the fabric. the subsequent list shows the special procurement sorts offered within the SAP system:

 Consignment

Subcontracting

Stock transfer victimization the stock transport order (STO)

Production in another plant

Third-party process

Returnable transport packaging

Pipeline handling

The DMS in SAP helps you store external documents, like footage of the products or material. By mistreatment of the DMS, you’ll set the most size of the image that may be uploaded in an exceeding document. The DMS helps to link these external documents with the acceptable SAP objects.

Externally Owned Special Stocks

Stocks that belong to the corporate however square measure hold on with the distributor or the client square measure known as company-owned special stocks.

Stocks that belong to the distributor or the client however square measure hold on at the corporate square measure known as externally owned special stocks.

Company-owned special stocks square measure managed at the assembly level.

Externally owned special stocks square measure managed at the place wherever they’re holding on. ( data science online training )

affirmative, you’ll do the physical inventory check of consignment stocks. to try to do the physical inventory check, perform the subsequent operations:

Create a physical inventory document

Enter the physical inventory count

Post the inventory variations