Materials Management with SAP S/4HANA®

Jawad Akhtar is an SAP logistics and supply chain management expert with a focus on business sales and delivery. He earned his chemical engineering degree from Missouri University of Science and Technology in the United States. He has 20 years of professional experience, 14 of which have been spent working with SAP systems. He has experience working on several large-scale, end-to-end SAP project implementation lifecycles, including rollouts. He works with SAP clients to help them identify root causes of business issues and address those with the appropriate SAP products and change management strategies. He now focuses on next-generation SAP products such as SAP S/4HANA, SAP IBP, SAP Ariba, and SAP Hybris. Akhtar is also a technical advisor to SAPexperts, an ASUG speaker, and a contributor to SearchSAP, where his "Ask the Expert" column shares real-life lessons and best practices gleaned from SAP implementations, ways to avoid common project pitfalls, and features of various SAP products that solve key business issues. A native of London, England, Martin Murray joined the computer industry upon his graduation from Middlesex University in 1986. In 1991, he began working with SAP R/2 in the Materials Management area for a London-based multi-national beverage company. In 1994, he moved to the United States to work as an SAP R/3 consultant. Since then, he's been implementing the Materials Management (MM) and Warehouse Management (WM) functionality in projects throughout the world. He works for IBM Global Business Services. Martin is the author of six best-selling books from SAP PRESS: Materials Management with SAP ERP, Warehouse Management with SAP ERP, Discover Logistics with SAP ERP, Maximize Your Warehouse Operations with SAP ERP, Understanding the SAP Logistics Information System, and SAP Transaction Codes: Your Quick Reference to T-Codes in SAP ERP.

... Acknowledgments ... 31

... Preface ... 33

... Who Is This Book For? ... 33

... How This Book Is Organized ... 33

... Conclusion ... 38

Part I ... Materials Management Foundations ... 39

1 ... Materials Management Overview ... 41

1.1 ... What Is Materials Management? ... 41

1.2 ... Materials Management Integration ... 45

1.3 ... Summary ... 47

2 ... Organizational Structure ... 49

2.1 ... Mapping Business Functions of a Company in the SAP System ... 49

2.2 ... Client Structure in the SAP System ... 53

2.3 ... Company Codes ... 56

2.4 ... Plants ... 59

2.5 ... Storage Locations ... 64

2.6 ... Purchasing Organizations ... 66

2.7 ... Purchasing Groups ... 72

2.8 ... SAP Calendar ... 72

2.9 ... Summary ... 75

3 ... Configuring the Material Master ... 77

3.1 ... Material Master ... 77

3.2 ... Configuring a New Material Type ... 79

3.3 ... Defining a Number Range for a Material Type ... 85

3.4 ... Defining Field Selections ... 88

3.5 ... Configuring an Industry Sector ... 90

3.6 ... Defining Material Groups ... 90

3.7 ... Configuring a New Unit of Measure ... 91

3.8 ... Validating the Correctness of Configurable Objects ... 93

3.9 ... Summary ... 99

4 ... Material Master Data ... 101

4.1 ... Industry Sector ... 103

4.2 ... Material Type ... 103

4.3 ... Basic Data ... 108

4.4 ... Classification Data ... 122

4.5 ... Purchasing Data ... 124

4.6 ... Sales Organizational Data ... 133

4.7 ... Sales General Data ... 138

4.8 ... Material Requirements Planning Data ... 142

4.9 ... Advanced Planning Data ... 159

4.10 ... Extended Service Parts Planning ... 165

4.11 ... Forecasting Data ... 169

4.12 ... Work Scheduling Data ... 174

4.13 ... Production Resources/Tools Data ... 179

4.14 ... Plant Data/Storage Location ... 182

4.15 ... Warehouse Management Data ... 187

4.16 ... Quality Management Data ... 193

4.17 ... Accounting Data ... 197

4.18 ... Costing Data ... 202

4.19 ... Summary ... 206

5 ... Business Partners ... 207

5.1 ... Configuring Vendor Account Groups ... 209

5.2 ... Configuring a Business Partner ... 214

5.3 ... Customer-Vendor Integration ... 220

5.4 ... Additional Business Partner Configurations ... 223

5.5 ... Maintaining a Business Partner ... 227

5.6 ... Summary ... 257

Part II ... Procurement ... 259

6 ... Purchasing Overview ... 261

6.1 ... Purchase Requisitions ... 261

6.2 ... Requests for Quotation ... 262

6.3 ... Quotations ... 263

6.4 ... Outline Agreements ... 264

6.5 ... Purchase Orders ... 265

6.6 ... Source Lists and Source Determination ... 266

6.7 ... Conditions in Purchasing ... 271

6.8 ... Purchasing Information Records ... 273

6.9 ... Serial Numbers ... 275

6.10 ... Quota Arrangements ... 278

6.11 ... Summary ... 280

7 ... Purchasing Information Record ... 281

7.1 ... Purchasing General Data ... 282

7.2 ... Purchasing Organization Data ... 287

7.3 ... Summary ... 293

8 ... Purchase Requisitions ... 295

8.1 ... Configuring a New Purchase Requisition Document Type ... 295

8.2 ... Processing a Purchase Requisition ... 306

8.3 ... Indirectly Created Requisitions ... 309

8.4 ... Release Procedures ... 311

8.5 ... Flexible Workflow ... 330

8.6 ... Summary ... 338

9 ... Requests for Quotation ... 339

9.1 ... Creating a Request for Quotation ... 339

9.2 ... Changing a Request for Quotation ... 347

9.3 ... Releasing a Request for Quotation ... 348

9.4 ... Issuing a Request for Quotation to a Vendor ... 350

9.5 ... Maintaining Quotations ... 351

9.6 ... Comparing Quotations ... 353

9.7 ... Rejecting Quotations ... 356

9.8 ... Summary ... 358

10 ... Purchase Orders ... 359

10.1 ... Creating and Maintaining a Purchase Order ... 360

10.2 ... Blocking and Canceling a Purchase Order ... 366

10.3 ... Creating a Purchase Order with Reference to Purc