unit 7-materials management-master data and rules

7/30/2019 Unit 7-Materials Management-Master Data and Rules

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Unit 7

Materials Management(MM)- Master Data and

Rules -

MELJUNCORTES


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January 2008 SAP AG - University 3

Master Data

Master data is relatively fixed Material master data

Vendor master data

Purchasing information record

General Ledger master data

Before making the master dataconfigurations, you must havecompletely defined theorganizational structures


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R/3

FIFinancial

Accounting

COControlling

PSProject

SystemWFWorkflow

ISIndustry

Solutions

MMMaterials Mgmt.

HRHuman

Resources

SDSales and

Distribution

PPProduction

Planning

QMQuality

Mgmt.PMPlant Maintenance

SMServiceMgmt.

Client / Server

Integrated Business

Solution

ECEnterpriseControlling

AMFixed Assets

Mgmt.

R/3

FIFinancialAccounting

COControlling

PSProjectSystemWF

WorkflowISIndustry

Solutions

MMMaterialsMgmt.

HRHuman

Resources

SDSales andDistribution

PPProductionPlanning

QMQualityMgmt.

PMPlant Maintenance

SMServiceMgmt.

Client / ServerIntegrated BusinessSolution

ECEnterpriseControlling

AMFixed AssetsMgmt.

Materials Management (MM)


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Unit 7, Part 1 Overview(Master Data)

Unit Concept

Procure-to-Pay Process

Vendor Master Data Purchasing Information Record


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Unit Concept

The purchasing process involves theacquisition of goods and services tosupport the creation of goods and

services in the organization

Master data and rules required forthe purchasing process is presented


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Procurement Process(Procure-to-Pay)

PurchaseRequisition

Paymentto Vendor

NotifyVendor

VendorShipment

InvoiceReceipt

GoodsReceipt

PurchaseOrder

3-WayMatch


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Master Data General

Business rules and supportiveinformation are stored in master datarecords

Each master data record is unique inname or number

Internal or external number rangesare possible

Usually created or converted (legacy

system) in the beginning


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Master Data General

(continued) Vendor master records aremaintained by both accounts payable(A/P) and purchasing

Material master records aremaintained by purchasing, sales,production, accounting, etc.

Purchasing information records aremaintained primarily by purchasing


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Vendor MasterOrganization of the Data

General

Data:

Address Purchasing

Data

Vendor 10001

General Data

Company Code DataFinancial Accounting (FI)

Purchasing OrganizationData (MM)


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Vendor Master Data

A master record must be created forevery vendor

General data, Company Code data(Financial Accounting - FI), andPurchasing Org data (MaterialManagement - MM) Purch. org data

Purchasing dataPartner functions

Company code data

Account managementPayment

transactions

General data

AddressControl data

Payment

transactions


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Vendor Master

Includes all data necessary forprocessing business transactions andcorresponding with vendors

Information is shared between theaccounting and purchasingdepartments


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Vendor Master Typical

Screens Address Control

Payment Transactions Accounting Information

Correspondence

Purchasing Data

Partner Functions


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General Data Address

AddressVendor NameSearch TermStreet addressCity, Region Postal codeCountry

Communication

LanguageTelephone, Fax, E-Mail

Vendor MasterGeneral Data Address


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Vendor Master

General Data Control Data Account Control Customer

Authorization

Trading partner Group key

Tax Information Tax codes

Fiscal address

Country code

City code

Reference Data / Area International locator number


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Vendor MasterGeneral Data Payment

Transactions Bank Details Bank Key

Bank Account

Account Holder

Partner Bank Type

Payment Transactions Alternative Payee

Instruction Key


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Vendor Master Company

Code AccountingInformation Accounting Information

Reconciliation Account

Sort Key

Interest Calculation Interest Calculation Indication

Interest Calculation Frequency Withholding Tax

Withholding Tax Code

Exemption Number


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Vendor Master CompanyCode

Payment Transactions Payment Data Payment Terms

Tolerance Group

Check Double Invoice

Check Cashing Time

Automatic Payment Transactions Payment Methods

Alternate Payee

Payment Block

Invoice Verification


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Vendor Master Purch.Org. Data

Purchasing Data Conditions Order Currency

Terms of Payment Incoterms

Minimum Order

Value Sales Data

Salesperson

Control Data

AcknowledgementRequired

Returns to Vendor Automatic Purchase

Order Default Data Material

Purchasing Group

Planned DeliveryTime


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Vendor Master Purch.Org. Data

Partner Functions Partner Functions Partner Function

Partner Name


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Vendor Master Purch. Org.

Data Account Group Vendor masters are assigned to avendor account group

Through field status maintenance,vendor account groups can be setupfor one-time vendors, regionalvendors, and internal vendors

The vendor account group controlsboth type and number rangeassignment for vendors


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Purchasing Info Record

The purchasing info record providescontinuously updated informationabout the relationship of a specific

material with a specific vendor

Order unit, price, price changes,tolerances, reminder infos, historic

data, statistics, texts

Choice of automatic or manualupdating


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Source List

The source list stores informationabout where to acquire a givenmaterial for a given period of time

It specifies whether this sourceshould be used by MaterialsRequirement Planning (MRP)

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Unit 7, Group 1 Exercises

59. Vendor Account Groups

60. Create Vendor Master Accounting Record

61. Create Vendor Master Purchasing Record

62. Create Vendor Master Record Centrally




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Rules

Defines the parameters for MasterData and Transactions

Determines functionality for MasterData and Transactions

Relatively fixed

Changes as policy changes


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Fiscal Period

In order to execute any materialpostings, the current fiscal period hasto be activated

By initializing the company code formaterial management, the firstmajor integration between Financial

Accounting (FI) and Logistics iscompleted


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Plant Parameters

Material Requirements Planning(MRP) controllers

Individuals responsible for running andmaintaining Material RequirementsPlanning data and reports

Negative stock allowance

If a material is allowed to go negativefor inventory stock


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Plant Parameters

(continued) Purchasing Special purchasing rules

External purchasing only settings Planned orders

Rescheduling

Conversion to purchase requisitions


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Plant Parameters

(continued) Document number ranges Planned orders

Purchase requisitions Material Requirements Planning (MRP)

lists

Reservations


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Material Requirements

Planning Detailed planning level Primary Functions

Monitor inventory stocks Determine material needs

Quantity

Timing

Generate purchase or production orders


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Materials RequirementsPlanning

(continued) Integrates Production Planning (PP)

module with the MaterialsManagement (MM) module

Prerequisites for MaterialsRequirement Planning (MRP) Activate Material Requirements Planning

(MRP) for a plant Material Master created

Material Requirements Planning view

Material Requirements Planning type


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Material RequirementsPlanning

Basic Process Exploding the Bill of Material (if usingproduction)

Netting Out Inventory Lot Sizing

Time-phasing requirements


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Net Requirements Material Requirements Planning(MRP) calculates the quantity ofmaterial needed, if any, based on

Sales Orders

Material Reservations

Repair Parts Inventory

Purchase Orders

Etc


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If adequate inventory is not availableto meet Material RequirementsPlanning (MRP) needs then the

system generates Planned Production Orders

Planned Purchase Orders


Net Requirements (continued)


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Lot Sizing Static Based on fixed values in the Material

Master

Periodic

Groups net requirements together frommultiple periods

Optimum

Calculates the optimum lot size for a

several periods of net requirements

Unit 7 Gro p 2 E ercises


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65. Initialize Fiscal Period for Company Code

66. Maintain Plant Parameters for MaterialManagement

67. Activate Materials Requirements Planning

Unit 7 Part 3


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Unit 7, Part 3Overview (Material

Master) Industry Sector Material Type

Maintenance Features Organizational Levels

Primary Views


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Material Master IndustrySector

Records are grouped according toindustry sector and material type

Determines the industry specific datathat will appear on the master record


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Material Master MaterialType

Material types group materials withthe same attributes

Material type informationdetermines:

What views are maintained

Whether internal or externalprocurement is allowed

If changes in material quantity areupdated


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Material Master MaterialTypes

Standard material types are used inall industries.

ROH: Raw Materials

Purchased externally only

No sales view

HAWA: Trading Goods Always purchased externally

Sold without any change to the material

No manufacturing views exist


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Material Master MaterialTypes (continued)

FERT: Finished Products

Are produced internally

Normally no purchasing views exist


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Material MasterAdditional Material Types

HIBE: Operating Supplies

VERP: Customer returnablepackaging

LEER: Empty containers

KMAT: Configurable material

ERSA: Spare parts

DIEN: Services


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Material MasterAdditional Material Types

(continued) NLAG: Non-stock, non-valuatedmaterial

UNBW: Non-valuated, stockedmaterial

FHMI: Production resources/tools

WETT: Competitive products PROD: Product group

IBAU: Maintenance assemblyPlant Maintenance


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Material MasterMaintenance

Defaults - speeds entry of data byusing the most frequently used fieldvalues (plant, purchasing

organization, etc.) Reference Material - speeds entry of

data by copying data from existingmaterial master

Profiles - speeds entry of data bycopying standard data created in aprofile into a selected view Materials

Requirements Planning (MRP)


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Material Master Data

Material master data can be relatedto all organizational levels

General information of a material(description, number, base unit ofmeasure)

Has to be related to the highest level oforganization - the client


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Material Master Levels

Client

Description

Units of measure Material number

Engineering data

Plant Planning data

Manufacturing data

Material Master Levels


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Material Master Levels(continued)

Storage Location Stock quantities


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Material Master Views

Basic data 1, 2

Classification

Sales: sales organization data 1, 2 Sales: general/plant data

Sales text

Purchasing

Purchase order text

Forecasting


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Material Master Views(continued)

MRP 1, 2, 3, 4

Work scheduling

Storage Warehouse management

Quality management

Accounting 1, 2

Costing 1, 2

Material Master Material


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Material Master MaterialManagement

Basic Data

Purchasing

MRP 1,2,3 General Plant

Data/Storage

Accounting 1

Purchas

ing

View MRP1View

BarrelPen


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Material Master Basic Data

General data Basic Unit of Measure

Unit of measure in which stocks of the

material are managed Material Group

Key that you use to group together severalmaterials or services with the sameattributes (e.g. productions, sales, touring-bike, off-road)

Division

Used to determine the sales area and thebusiness area for a material, product, orservice


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Material Master Basic Data(continued)

Dimensions/EANs Gross weight

Used to check storage capacity in

warehouse Net weight

Weight excluding packaging and extras this is needed for sales and distribution

Weight Unit Unit of Measure for weight

Volume

The space that the material occupies perunit of volume


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Material Master Purchasing View

General Data Order Unit

The unit of measure in which a company

purchases the product Purchasing Group

Key for a buyer or a group of buyers, whois/are responsible for certain purchasingactivities.

Purchasing Values Purchasing Value Key

Define the reminder days and tolerancelimits for purchasing


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Material Master PlantData/Storage 1

General Data Container Requirements

Define the regulations that govern whichtype of container the material must be

stored and shipped in Storage Conditions

Defines the conditions on how a materialmust be stored or warehoused

Shelf Life Data Minimum remaining shelf life

Minimum time the material must keepupon goods receipt for the goods receipt tobe accepted by the system

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Material Master MRP 1

General Data Purchasing Group

The buyer(s) who are responsible for certain

purchasing activities MRP Procedures

MRP Type

Determines whether and how the material isplanned

Reorder Point

If stock falls below this point, the system isflagged to create a planned order

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Material Master MRP 1(continued)

Lot Size Data Lot Size

The lot sizing procedure to calculate the

quantity to be produced or procured Minimum Lot Size

The smallest order quantity

Fixed Lot Size

The quantity to be ordered

M i l M MRP 2


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Scheduling Planned Delivery Time

Number of calendar days needed to obtainthe material

Scheduling Margin Key

Used to determine the floats required forscheduling

Net Requirement Calculation Safety Stock

Specifies the quantity whose purpose is tosatisfy unexpectedly high demand in thecoverage period

M t i l M t MRP 3


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Availability Check Specifies whether and how the system

checks availability and generatesrequirements for materials planning

M t i l M t


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Material Master Accounting 1

Current Valuation Valuation Class

Allows the stock values of materials of thesame material type to be posted to differentG/L accounts.

Allows the stock values of materials ofdifferent material types to be posted to thesame G/L account.

Determines together with other factors theG/L accounts updated for a valuation-relevant transaction (Material Movements)

Price Unit

Number of units to which the price refers

M t i l M t


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Material Master Accounting 1 (continued)

Current Valuation Price Control Indicator

The price control used to valuate the stockof a material (e.g, Standard or MovingAverage Price)

Standard Price

The valuation of material stocks at standardprices means that all goods movements arevaluated at the same price over anextended period

Moving Average Price

The system calculates the moving averageprice automatically by dividing the material

Unit 7 Group 3 Exercises


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68. Define Attribute for Material Types (SetUpdating/Deselect Classification)

69. Create Material Master for Trading Goods

70. (Optional Exercise) Create Material Master

for Operating Supplies

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