SAP MM

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.

1 Materials Management Overview ... 31 ... 1.1 ... Materials Management as a Part of SAP ... 31 ... 1.2 ... Materials Management as Part of Logistics ... 34 ... 1.3 ... MM Integration with Other Modules ... 36 ... 1.4 ... Chapter Summary ... 38 2 Materials Management Organizational Structure ... 41 ... 2.1 ... Client Structure ... 41 ... 2.2 ... Company Code ... 45 ... 2.3 ... Plants ... 47 ... 2.4 ... Storage Locations ... 50 ... 2.5 ... Warehouse and Storage Types ... 54 ... 2.6 ... Purchasing Organization ... 56 ... 2.7 ... Summary ... 59 3 Master Data in Materials Management ... 61 ... 3.1 ... Material Master ... 61 ... 3.2 ... Vendor Master ... 66 ... 3.3 ... Purchasing Information Data ... 72 ... 3.4 ... Batch Management Data ... 75 ... 3.5 ... Serial Number Data ... 79 ... 3.6 ... Summary ... 82 4 Material Master Data - Part 1 ... 83 ... 4.1 ... Industry Sector ... 84 ... 4.2 ... Material Type ... 84 ... 4.3 ... Basic Data ... 91 ... 4.4 ... Classification Data ... 102 ... 4.5 ... Purchasing Data ... 104 ... 4.6 ... Forecasting Data ... 114 ... 4.7 ... Work Scheduling Data ... 118 ... 4.8 ... Sales Organizational Data ... 122 ... 4.9 ... Sales General Data ... 128 ... 4.10 ... Summary ... 131 5 Material Master Data - Part 2 ... 133 ... 5.1 ... Production Resources/Tools (PRT) Data ... 133 ... 5.2 ... Plant Data/Storage Location ... 136 ... 5.3 ... Warehouse Management Data ... 141 ... 5.4 ... Quality Management Data ... 147 ... 5.5 ... Material Requirements Planning Data ... 149 ... 5.6 ... Accounting Data ... 166 ... 5.7 ... Costing Data ... 170 ... 5.8 ... Summary ... 174 6 Vendor Master Data ... 175 ... 6.1 ... General Data ... 175 ... 6.2 ... Accounting Information ... 185 ... 6.3 ... Purchasing Data ... 195 ... 6.4 ... Summary ... 204 7 Purchasing Information Data ... 205 ... 7.1 ... Purchasing General Data ... 205 ... 7.2 ... Purchasing Organization Data ... 210 ... 7.3 ... Summary ... 218 8 Batch Management Data ... 219 ... 8.1 ... Batch Management Overview ... 219 ... 8.2 ... Batch Master Record ... 221 ... 8.3 ... Batch Determination ... 230 ... 8.4 ... Batch Information Cockpit ... 234 ... 8.5 ... Summary ... 239 9 Material Master Record ... 241 ... 9.1 ... Creating a Material Master Record ... 241 ... 9.2 ... Changing a Material Master Record ... 242 ... 9.3 ... Material Master Deletion ... 247 ... 9.4 ... Loading Material Master Records ... 251 ... 9.5 ... Production Versions ... 253 ... 9.6 ... Revision Levels ... 257 ... 9.7 ... Summary ... 258 10 Vendor Master Record ... 259 ... 10.1 ... Creating the Vendor Master Record ... 259 ... 10.2 ... Changing the Vendor Master Record ... 263 ... 10.3 ... Deleting Vendor Master Record ... 266 ... 10.4 ... Display Vendor Master Record ... 268 ... 10.5 ... Blocking Vendors ... 270 ... 10.6 ... One-Time Vendor ... 272 ... 10.7 ... Vendor Sub-Range Functionality ... 273 ... 10.8 ... Summary ... 274 11 Purchasing Overview ... 275 ... 11.1 ... Purchase Requisition ... 275 ... 11.2 ... Request for Quotation ... 276 ... 11.3 ... Quotation ... 278 ... 11.4 ... Purchase Order ... 279 ... 11.5 ... Source List and Source Determination ... 280 ... 11.6 ... Conditions in Purchasing ... 286 ... 11.7 ... Vendor Evaluation ... 288 ... 11.8 ... Summary ... 296 12 Purchase Requisition ... 297 ... 12.1 ... Indirectly Created Requisition ... 297 ... 12.2 ... Directly Created Requisition ... 299 ... 12.3 ... Processing a Purchase Requisition ... 306 ... 12.4 ... Summary ... 312 13 Request for Quotation ... 313 ... 13.1 ... Creating a Request for Quotation ... 313 ... 13.2 ... Changing a Request for Quotation ... 321 ... 13.3 ... Releasing an RFQ ... 323 ... 13.4 ... Issuing a Request for Quotation to a Vendor ... 325 ... 13.5 ... Summary ... 327 14 Quotation ... 329 ... 14.1 ... Entering a Quotation ... 329 ... 14.2 ... Comparing Quotations ... 331 ... 14.3 ... Rejecting Quotations ... 335 ... 14.4 ... Summary ... 337 15 Purchase Order ... 339 ... 15.1 ... Create a Purchase Order ... 339 ... 15.2 ... Maintaining a Purchase Order ... 343 ... 15.3 ... Blocking and Canceling a Purchase Order ... 344 ... 15.4 ... Account Assignment in a Purchase Order ... 345 ... 15.5 ... Outline Purchase Agreement ... 349 ... 15.6 ... Scheduling Agreement ... 350 ... 15.7 ... Contracts ... 353 ... 15.8 ... Vendor Confirmation ... 358 ... 15.9 ... Messages and Outputs ... 361 ... 15.10 ... Reporting ... 364 ... 15.11 ... Release Procedures ... 365 ... 15.12 ... Summary ... 366 16 External Service Management (ESM) ... 369 ... 16.1 ... Service Master Record ... 369 ... 16.2 ... Standard Service Catalog (SSC) ... 373 ... 16.3 ... Conditions in ESM ... 375 ... 16.4 ... Procurement of Services ... 377 ... 16.5 ... Entry of Services ... 379 ... 16.6 ... Blanket Purchase Order ... 381 ... 16.7 ... Summary ... 383 17 Consumption-Based Planning ... 385 ... 17.1 ... Master Data in CBP ... 385 ... 17.2 ... Planning Process ... 388 ... 17.3 ... Planning Evaluation ... 390 ... 17.4 ... Procurement Proposal ... 392 ... 17.5 ... Summary ... 393 18 Material Requirements Planning ... 395 ... 18.1 ... Reorder-Point Planning ... 395 ... 18.2 ... Forecast-Based Planning ... 397 ... 18.3 ... Time-Phased Planning ... 398 ... 18.4 ... Summary ... 400 19 Forecasting ... 401 ... 19.1 ... Forecast Models ... 401 ... 19.2 ... Forecast Parameters ... 403 ... 19.3 ... Forecast Options ... 407 ... 19.4 ... Summary ... 409 20 Inventory Management Overview ... 411 ... 20.1 ... Goods Movements ... 411 ... 20.2 ... Goods Issue ... 415 ... 20.3 ... Goods Receipt ... 416 ... 20.4 ... Physical Inventory ... 416 ... 20.5 ... Returns ... 416 ... 20.6 ... Reservations ... 421 ... 20.7 ... Stock Transfers ... 427 ... 20.8 ... Summary ... 433 21 Goods Issue ... 435 ... 21.1 ... Goods Issue to a Production Order ... 435 ... 21.2 ... Goods Issue to Scrap ... 440 ... 21.3 ... Goods Issue for Sampling ... 443 ... 21.4 ... Goods Issue Posting ... 444 ... 21.5 ... Goods Issue Reversal ... 446 ... 21.6 ... Summary ... 447 22 Goods Receipt ... 449 ... 22.1 ... Goods Receipt for a Purchase Order ... 449 ... 22.2 ... Goods Receipt for a Production Order ... 454 ... 22.3 ... Initial Entry of Inventory ... 456 ... 22.4 ... Other Goods Receipts ... 457 ... 22.5 ... Summary ... 461 23 Physical Inventory ... 463 ... 23.1 ... Physical Inventory Preparation ... 463 ... 23.2 ... Counting and Recounts ... 468 ... 23.3 ... Physical Inventory Posting ... 471 ... 23.4 ... Summary ... 475 24 Invoice Verification ... 477 ... 24.1 ... Standard Three-Way Match ... 477 ... 24.2 ... Evaluated Receipt Settlement ... 482 ... 24.3 ... Document Parking ... 484 ... 24.4 ... Variances ... 485 ... 24.5 ... Blocking Invoices ... 488 ... 24.6 ... Releasing Invoices ... 494 ... 24.7 ... Summary ... 495 25 Balance Sheet Valuation ... 497 ... 25.1 ... LIFO Valuation ... 497 ... 25.2 ... FIFO Valuation ... 503 ... 25.3 ... Lowest Value Determination ... 506 ... 25.4 ... Summary ... 511 26 Material Ledger ... 513 ... 26.1 ... Material Ledger Overview ... 513 ... 26.2 ... Material Ledger Data ... 515 ... 26.3 ... Material Price Determination ... 517 ... 26.4 ... Summary ... 521 27 Classification System ... 523 ... 27.1 ... Classification Overview ... 523 ... 27.2 ... Characteristics ... 524 ... 27.3 ... Classes ... 529 ... 27.4 ... Class Type ... 531 ... 27.5 ... Class Hierarchies ... 534 ... 27.6 ... Object Dependencies ... 535 ... 27.7 ... Finding Objects Using Classification ... 536 ... 27.8 ... Summary ... 540 28 Document Management ... 541 ... 28.1 ... Document Management Overview ... 541 ... 28.2 ... Document Information Record ... 541 ... 28.3 ... Creating a Document ... 544 ... 28.4 ... Linking an Object to a Document ... 546 ... 28.5 ... Documents and Classification ... 548 ... 28.6 ... Summary ... 549 29 Conclusion ... 551 ... 29.1 ... Lessons Learned ... 551 ... 29.2 ... Future Direction ... 553