Procurement with SAP MM—Practical Guide

Matt Chudy is an independent SAP Logistics consulting lead. He has more than 12 years of experience in SD, MM, and Logistics, spanning project administration, design, gap-analysis, testing, implementation, and supporting and training. He has been a strong team leader and covered several SAP project lifecycles. His specialties include Logistics Execution System, Transportation Management, Sales and Distribution, Inventory and Warehouse Management, Materials Management, and Production Planning. He currently lives in the greater Chicago area. Luis Castedo is an independent systems and business consultant with more than 20 years of experience. For the past 15 years, he has been focused on SAP implementations. He has experience working with Fortune 500 companies and on multisite projects. He is a certified SAP MM consultant, and his specialties include Sales and Distribution, Materials Management, Inventory and Warehouse Management, Shipping, and Transportation. He currently lives in the Mexico City area.

Introduction ... 15

1. Introduction to SAP ERP and the SAP Business Suite ... 19

1.1 ... SAP ERP Components ... 20
1.2 ... Materials Management Organizational Structures ... 23
1.3 ... Materials Management Overview ... 29
1.4 ... SAP Business Suite: Other Procurement Tools ... 32
1.5 ... Summary ... 39

2. Master Data ... 41

2.1 ... Importance of Master Data in Procurement ... 41
2.2 ... Material Master ... 42
2.3 ... Service Master ... 51
2.4 ... Business Partners ... 57
2.5 ... Vendor Hierarchies ... 71
2.6 ... Source Lists ... 73
2.7 ... Quota Arrangement ... 76
2.8 ... Purchasing Info Records ... 81
2.9 ... Pricing ... 87
2.10 ... Taxes ... 93
2.11 ... Other Master Data ... 101
2.12 ... Summary ... 103

3. Planning and Forecasting ... 105

3.1 ... Material Requirements Planning Procedures ... 106
3.2 ... Master Data in Planning ... 113
3.3 ... Forecasting ... 124
3.4 ... Sales and Operations Planning and Flexible Planning ... 137
3.5 ... Planning Execution ... 145
3.6 ... Evaluation and Analysis ... 149
3.7 ... Summary ... 152

4. Purchasing ... 153

4.1 ... Requests for Quotation (RFQ) ... 154
4.2 ... Outline Agreements ... 161
4.3 ... Purchase Requisition ... 180
4.4 ... Purchase Orders ... 184
4.5 ... Release Strategies ... 195
4.6 ... Return Materials to Vendor ... 204
4.7 ... Vendor Evaluation ... 208
4.8 ... Reporting ... 218
4.9 ... Summary ... 231

5. Special Procurement Functions ... 233

5.1 ... Subcontracting ... 233
5.2 ... Third-Party Order ... 256
5.3 ... Stock Transport Orders ... 269
5.4 ... Cross-Company Code Stock Transport Order ... 295
5.5 ... Kanban ... 308
5.6 ... Order Optimizing ... 317
5.7 ... Summary ... 335

6. Procurement of Services ... 337

6.1 ... Processing Requirements ... 338
6.2 ... Service Entry and Acceptance ... 349
6.3 ... Using Outline Agreements for Services ... 355
6.4 ... Summary ... 358

7. Inbound Logistics ... 359

7.1 ... Confirmation Controls ... 360
7.2 ... Order Acknowledgement ... 364
7.3 ... Rough Goods Receipt ... 367
7.4 ... Inbound Delivery: Shipping Notification ... 370
7.5 ... Inbound Shipment ... 384
7.6 ... Shipment Cost Document ... 397
7.7 ... Summary ... 403

8. Inventory Management ... 405

8.1 ... Overview ... 405
8.2 ... Receiving ... 408
8.3 ... Managing Special Stocks ... 417
8.4 ... Transfer Postings ... 422
8.5 ... Summary ... 425

9. Logistics Invoice Verification ... 427

9.1 ... Invoice Processing ... 428
9.2 ... Automatic Settlement ... 442
9.3 ... Processing Subsequent Debits and Credits ... 448
9.4 ... Cancelling Invoice Document ... 451
9.5 ... Summary ... 452

Appendices ... 453

A ... Procurement Tables ... 455
B ... Working with Procurement Documents: Quick Reference Guide ... 465
C ... Additional Resources ... 475
D ... The Authors ... 477

Index ... 479