SAP MM (Materials Management)

 SAP Materials Management (SAP MM)- Organizational structure/ Company structure

What is a MM?

Materials management is the process of planning and controlling material flows. It includes planning and procuring materials, supplier evaluation and selection, purchasing, expenditure, shipping, receipt processes for materials (including quality control), warehousing and inventory, and materials distribution.

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ü  ECC 6.0 Latest version of SAP server

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Transactions Code (T- code)

Go to Additional Information -> Additional Information -> Display key -> Maintains Object

SAP MM ORGANASATIONAL STREUCTURE

CHAPTER NO	PARTICULAR	T-CODE
1	Define company	OX15
2	Define company code (Branch Company)	OX02
3	Assign company code to company	OX16
4	Define Plant	OX10
5	Define Storage Location	OX09
6	Define Purchase Organization	OX08
7	Define Purchase Group	OME4
8	Assign Plant to company Code	OX18
9	Assign Purchase Organization to company code	OX01
10	Assign Purchase Organization to Plant	OX17
11	Assign Standard Purchase Organization to Plant	OMKI

1) Define company (OX15)

/NSPRO -> SAP Reference IMG -> Enterprise Structure -> Definition

-> Financial Accounting -> Define Company 

 

2) Define company code (OX02)

/NSPRO -> SAP Reference IMG -> Enterprise Structure -> Definition -> Financial Accounting -> click to Edit, Copy, Delete, Check Company Code -> Double click on Edit company code data

3) Assign company code to company (OX16)

/NSPRO -> SAP Reference IMG -> Enterprise Structure -> Assignment -> Financial Accounting -> Assign Company code to Company

 

4) Define Plant (OX10)

/NSPRO -> SAP Reference IMG -> Enterprise Structure -> Definition -> Logistic -> General -> Define, copy, Delete check plant

 

5) Define Storage Location (OX09)

/NSPRO -> SAP Reference IMG -> Enterprise Structure -> Definition -> Material Management -> Maintain Storage Location

 

6) Define Purchase Organization (OX08)

/NSPRO -> SAP Reference IMG -> Enterprise Structure -> Definition -> Material Management -> Maintain Purchasing organization

 

7) Define Purchase Group (OME4)

/NSPRO -> SAP Reference IMG -> Material Management -> Purchasing -> Create Purchasing Group

 

8) Assign Plant to company Code (OX18)

/SPRO -> SAP Reference IMG - > Enterprise Structure - > Assignment -> Logistics – General -> Assign Plant to company code

9) Assign Purchase Organization to company code (OX01)

/SPRO -> SAP Reference IMG - > Enterprise Structure - > Assignment -> Materials management -> Assign Purchase Organization to company code

10) Assign Purchase Organization to Plant (OX17)

/SPRO -> SAP Reference IMG - > Enterprise Structure - > Assignment -> Materials management -> Assign Purchase Organization to Plant

11) Assign Standard Purchase Organization to Plant (OMKI)

/SPRO -> SAP Reference IMG - > Enterprise Structure - > Assignment -> Materials management -> Assign Standard Purchase Organization to Plant

Note: Standard purchasing organization is the default purchasing organization, so we can sometimes assign the standard purchasing organization to some specify plant, if we want to have the default purchasing organization for the plant.

 

BASIC SETTING OF MM
CHAPTER NO		PARTICULAR	T-CODE
1		Define company	OX15
2		Define company code (Branch Company)	OX02
3		Assign company code to company	OX16
4		Define business area	OX03
5		Define chart of account	OB13
6		Assign company code to chart of accounts	OB62
7		Define accounts group with Number range	OBD4
8		Define retain earning account	OB53
9		Assign company code to fiscal year	OB37
10		Posting period
	A	Define posting period varient	OBBO
	B	Assign posting period varient to company code	OBBP
	C	Open and close posting period	OB52
11	A	Document Number Range	FBN1
	B	Copy to fiscal year (Path :)	OBH2
12		Define field status Varient	OBC4
13		Assign field status varient to compny code	OBC5
14		Tolerance Group
	A	Tolerance Group for GL (General Ledger) Account (Path :)	OBA3
	B	Define tolerance group for employee (Path :)	OBA4
15		Enter Globle Parameters (Path :)	OBY6
16		Document Splitting	Path

1)      Define company (OX15)

 

/NSPRO -> SAP Reference IMG -> Enterprise Structure -> Definition

Financial Accounting -> Define Company 

 

 

2)      Define company code (Branch Company) (OX02)

/NSPRO -> SAP Reference IMG -> Enterprise Structure -> Definition -> Financial Accounting -> click to Edit, Copy, Delete, Check Company Code -> Double click on Edit company code data

 

 

3)      Assign company code to company (OX16)

/NSPRO -> SAP Reference IMG -> Enterprise Structure -> Assignment -> Financial Accounting -> Assign Company code to Company

 

 

4)      Define business area (OX03)

/NSPRO -> SAP Reference IMG -> Enterprise Structure -> Definition -> Financial Accounting -> Define Business Area

 

5)      Define chart of account (OB13)

/NSPRO -> SAP Reference IMG -> Financial Accounting -> General Ledger Accounting -> GL Accounts -> Master Data -> Preparations -> Edit Chart of Accounts List

 

6)      Assign company code to chart of accounts (OB62)

/NSPRO -> SAP Reference IMG -> Financial Accounting -> General Ledger Accounting -> GL Accounts -> Master Data -> Preparations -> Assign company code to chart of accounts

 

7)      Define accounts group with Number range (OBD4)

/NSPRO -> SAP Reference IMG -> Financial Accounting -> General Ledger Accounting -> GL Accounts -> Master Data -> Preparations -> Define accounts groups

 

8)      Define retain earning account (OB53)

/NSPRO -> SAP Reference IMG -> Financial Accounting -> General Ledger Accounting -> GL Accounts -> Master Data -> Preparations -> Define Retained Earnings Account

 

9)      Assign company code to fiscal year (OB37)

/NSPRO ->SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Setting -> Fiscal Year -> Assign Company Code to a Fiscal Year Variant

 

10)  Posting period

a)     Define posting period variant (OBBO)

b)     Assign posting period variant to company code (OBBP)

c)     Open and close posting period (OB52)

 

11)   

a)     Document Number Range (FBN1)

b)     Copy to fiscal year (OBH2)

c)     /NSPRO -> SAP Reference IMG -> Financial Accounting -> Financial Accounting Global setting -> document -> document number range -> Copy to fiscal year

 

12)  Define field status Variant (OBC4)

 

13)  Assign field status variant to company code (OBC5)

 

14)  Tolerance Group

 

1)     Tolerance Group for GL (General Ledger) Account (OBA3)

/NSPRO-> SAP Reference IMG -> Financial accounting -> General Ledger Accounting -> Business Transactions -> Open item clearing -> Clearing differences -> Define Tolerance groups for GL accounts -> click to new entry

 

2)     Define tolerance group for employee (OBA4)

/NSPRO-> SAP Reference IMG -> Financial accounting -> General Ledger Accounting -> Business Transactions -> Open item clearing -> Clearing differences -> Define tolerance group for employee

 

15)  Enter Global Parameters (OBY6)

 

16)  Documents Splitting (For the use for Transaction Post)

Notes: 16) Documents Splitting (For the use for Transaction Post)

/NSPOR -> SAP Reference IMG -> Financial Accounting New -> General Ledger Accounting New -> Business Transactions -> Documents Splitting -> Active Document Splitting -> Double clicks to Deactivation per company code-> Position -> company code 

 

SAP MM VENDOR MASTER

The Vendor master contains information about the vendors that supply materials or services to an enterprise. Information about a vendor is stored in individual vendor master records. Vendor master record contains data like (Vendor name, Address, The currency used for ordering from the vendor, Terms of payment, name of important contact person i.e. sales staff)

1)      Define Vendor Account Group  (OBD3)

/NSPRO -> SAP Reference IMG - > Logiest General -> Business Partner - > Vendor -> Control -> Define Accounts group and field selection (Vendor)

 

2)      Define Number Range for vendor account (XKN1)

/NSPRO -> SAP Reference IMG - > Logiest General -> Business Partner - > Vendor -> Control -> Define Number range for vendor master record

 

3)      Assign Number Range to vendor Account (OBAS)

(a)   /NSPRO-> SAP Reference IMG -> Financial Accounting -> Accounts Receivable and payable -> Vendor Accounts -> Master Data -> Preparations for crating vendor master data -> Assign Number range to vendor accounts groups. -> Click to position

 

(b)   Define tolerance group for vendor (OBA3)

/NSPRO-> SAP Reference IMG -> Financial Accounting -> Accounts Receivable and payable -> Business Transactions -> Outgoing payments -> manual outgoing payments -> Define tolerance vendor -> click to new entry

 

4)      Creations of GL Masters

a.      Purchase A/c. (Current Assets Loans & advance)

b.      Sundry Creditors (Current Liabilities)

c.       Advance paid to sundry creditors (Current Assets)

d.      Discount received (Other income)

 

5)       Link between Sundry Creditors and advance paid to sundry creditors (OBYR)

SGL IND. (Special GL Indicators) -> double click on [A] -> Chart of Account no

6)      Vendor Creations Masters (XK01)

SAP MENU -> Logistics -> Material management -> Purchasing -> Master data -> vendor -> Central -> Create

 

7)      Display & Edit in Vendor(XK02)

SAP MENU -> Logistics -> Material management -> Purchasing -> Master data -> Vendor -> Central -> Display/Edit (Alternations) 

SAP MATERIAL MASTER

Ø The material master contains information on all the materials that a company procures or produces, stores, and sells.

Ø For a company the material master record represents the central source for data on materials.

Ø The material master is used by all components in the SAP logistics system.

Ø Every area of responsibility can have a material master view because different user dept. in a company work with same material and each of these dept.’s to store different information on the material.

Ø Each department has its own material master record view.

 

1)      Define Attributes of Material Masters

 

a.      Maintain company code for materials management (OMSY)

/NSPRO->IMG-> Logistic general -> Material master -> basic setting -> maintain company code for materials management

b.      Maintain attributes of material types (OMS2)

/NSPRO->IMG-> Logistic general -> Material master -> basic setting ->

Material types -> Define attributes of material types

NOTE:

External number assignment: - while creating a material, you have to enter your own number (containing alphabets or digits), and that should be unique.

Internal number assignment: - While creating a material, you need not enter any number, the system automatically generates a unique number to that material.

 

2)      Define Material Group ( OMSF)

/NSPRO->IMG-> Logistic general -> Material Master -> setting for key fields ->Define material group

(If you want to create a new material group then you will create otherwise not create, only you want to select by default Material group.)

3)      Define number range for each material type (MMNR)

/NSPRO->IMG-> Logistic general -> Material master -> basic setting -> Material type -> Define number range for each material type

 

4)      Create Material (MM01) / Change Material (MM02)

/NSPRO-> IMG -> Logistic general -> Material master -> field selection -> Define industries sector and industries sector specified field selection

SAP FI-MM INTEGRATION CONFIGURATION

1)      Creations Of Plant Parameters (OMI8)

/NSPRO-> IMG-> Material Management -> Consumptions Based Planning -> Plant Parameters -> Carry out Overall Maintenance of Plant Parameters

2)      Group Together Valuations Areas (OMWD)

/NSPRO-> IMG-> Materials Management -> Valuation and Account Assignment-> Account Determination -> Account Determination without Wizard -> Group Together Valuation Areas

3)      Set Tolerance Limits for Price Variance(PO)

/NSPRO->IMG -> Materials Management-> Purchasing-> Purchase Order-> Set Tolerance Limits for Price Variance

4)      GR Tolerance Limit (OMC0)

/NSPRO->IMG -> Materials Management-> Inventory Management and Physical Inventory->Goods Receipt->Set Tolerance Limit

5)      Parameters for Invoice Verification (OMRV)

/NSPRO -> IMG-> Materials Management->logistic invoice verification->Invoice Verification Background->Define Automatic Status Change

6)      Maintain Plant Parameters for Inventory Management & Physical Inventory

/NSPRO-> IMG -> Materials Management->Inventory Management & Physical Inventory->Plant Parameters

7)      Default Value of Tax Codes for Invoice Verification

/NSPRO-> IMG ->Materials Management->logistic invoice verification->Incoming Invoice->Maintain Default Value for tax codes

8)      Maintain AN and ST Tolerance Limit (OMR6)

 

GL Creations

1)      Inventory of Raw material

2)      GR / IR Clearing a/c. (Goods receipt / Invoice receipt)

Assignment of Accounts for Automatic Posting (Integration) (OBYC)

Material List view (MM60)

Notes:

A)    Goods Receipt (MIGO) Movement in goods out : Received Material from vendor, Then stock will be increase

Document / Journal Entry:

                Inventory A/c.                   Dr.          (BSX)

                                To GR/ IR A/c.                    (WRX)

B)    Invoice Receipt (MIRO) Movement in receipt out: Hear Invoice will compare with purchase order and Goods Receipts documents (MIGO), If invoice verifications is done, then document entry.

Document / Journal Entry:

                GR/IR A/c.                           Dr.

                                To Vendor A/c.

C)    Payment: This is the final step in SAP FI-MM Cycle, The Finance Document will pay the amount.

Document / Journal Entry:

                Vendor A/c.                       Dr.

                                To Bank A/c.

SAP MM PURCHASE INFO RECORD INTRODUCTIONS

Ø  Material and vendor master are separate data records for keeping information of materials and vendors from where material is procured. The combined information of material and vendor altogether is kept in a record that we call as purchase info record.

Ø  Purchasing info record stores information on material and vendor, supplying that material. For example, a vendor’s current price of a particular material is stored in info record.

Ø  Purchase info record can be maintained at the plant level or at the purchasing organization level.

1)      Create info Record (ME11)

SAP Menu-> Logistics -> Material Management -> Purchasing -> Master Data-> Info record -> create

2)      Change info Record (ME12)

SAP Menu-> Logistics -> Material Management -> Purchasing -> Master Data-> Info record -> change

3)      Info Record Report (ME1M)

Information system -> Logistics -> Purchasing -> Material/Service -> Material -> Info Records.

 

QUOTATION OF MATERIALS

1)      Crate Request for Quotation (ME41)

SAP Menu-> Logistics -> Material Management -> Purchasing -> RFQ/Quotation -> Request for Quotation -> Create

2)      Display & Print Request for Quotation (ME9A)

SAP Menu-> Logistics -> Material Management -> Purchasing -> RFQ/Quotation -> Request for Quotation -> Message -> Print/Transmit

3)      Maintain Quotation (ME47)

SAP Menu-> Logistics -> Material Management -> Purchasing -> RFQ/Quotation -> Quotation -> Maintain Quotation

4)      Price Comparison (ME49)

SAP Menu-> Logistics -> Material Management -> Purchasing -> RFQ/Quotation -> Quotation -> Price Comparison

GST CONFIGURATIONS IN SAP MM/FICO

1)      Create Condition Type (OBQ1)

a.      For Input

                                                              i.      AICG (Input Central Goods & Service Tax)

                                                            ii.      AISG (Input State Goods & Service Tax)

                                                          iii.      AIIG (Input Integrated/Interstate Goods & Service Tax)

b.      For Output

                                                              i.      AOCG (Output Central Goods & Service Tax)

                                                            ii.      AOSG (Output State Goods & Service Tax)

                                                          iii.      AOIG (Output Integrated/Interstate Goods & Service Tax)

1)      Create Accounting Key (OBCN)

a.      For Input

                                                              i.      AIC (Input CGST)

                                                            ii.      AIS (Input SGST)

                                                          iii.      AII (Input IGST)

b.      For Output

                                                              i.      AOC (Output CGST)

                                                            ii.      AOS (Output SGST)

                                                          iii.      AOI (Output IGST)

 

2)      Define Tax Procedure (OBQ3)

/NSPRO -> IMG-> Financial Accounting (New) -> Financial Accounting Global setting (New)-> Tax on Sales/ Purchase -> Basic Setting -> check calculations Procedure -> Define New Procedure -> Click to New entries

 

3)      Assign country to calculation Procedure (OBBG)

4)      Create Tax Code (FTXP)

5)      Create GL for Accounting key (FS00)

a.      For Input

                                                              i.      Input CGST

                                                            ii.      Input SGST

                                                          iii.      Input IGST

b.      For Output

                                                              i.      Output CGST

                                                            ii.      Output SGST

                                                          iii.      Output IGST

7)      Account Determine (OB40)

a.      /NSPRO-> IMG-> Financial Accounting (New) -> Financial A/c. Global setting (New) -> Tax on Sales/ Purchase -> Posting -> Define Tax Account

 

Procurement Process (Without GST)

1)      Create Purchase Order (ME21N) / Display (ME23N)

SAP Menu -> Logistic -> Material Management -> Purchasing -> Purchase Order -> Create -> Vendor / Supplying Plant known

2)      Goods Receipt (MIGO)

SAP Menu -> Logistics -> Materials Management -> Inventory management -> Goods movement -> Goods Movement

3)      Invoice Receipt (MIRO)

SAP Menu -> Logistics -> Materials Management -> Logistics Invoice verification -> Document Entry -> Enter Invoice

4)      Vendor Payment (F-53)

SAP Menu -> Accounting -> Financial Accounting -> Accounts Payable -> Document Entry -> Outgoing Payment -> Post

5)      Vendor Line item Display (FBL1N)

Procurement Process (With GST)

1)      Create Purchase Order (ME21N) / Display (ME23N)

SAP Menu -> Logistic -> Material Management -> Purchasing -> Purchase Order -> Create -> Vendor / Supplying Plant known

2)      Goods Receipt (MIGO)

SAP Menu -> Logistics -> Materials Management -> Inventory management -> Goods movement -> Goods Movement

3)      Invoice Receipt (MIRO)

SAP Menu -> Logistics -> Materials Management -> Logistics Invoice verification -> Document Entry -> Enter Invoice

4)      Vendor Payment (F-53)

SAP Menu -> Accounting -> Financial Accounting -> Accounts Payable -> Document Entry -> Outgoing Payment -> Post

5)      Vendor Line item Display (FBL1N)

Procurement Process (With Freight Charges)

1)      Create Purchase Order (ME21N) / Display (ME23N)

SAP Menu -> Logistic -> Material Management -> Purchasing -> Purchase Order -> Create -> Vendor / Supplying Plant known

2)      Goods Receipt (MIGO)

SAP Menu -> Logistics -> Materials Management -> Inventory management -> Goods movement -> Goods Movement

3)      Invoice Receipt (MIRO)

SAP Menu -> Logistics -> Materials Management -> Logistics Invoice verification -> Document Entry -> Enter Invoice

4)      Vendor Payment (F-53)

SAP Menu -> Accounting -> Financial Accounting -> Accounts Payable -> Document Entry -> Outgoing Payment -> Post

5)      Vendor Line item Display (FBL1N)

 

Procurement Process (With Freight Charges) Other Vendor

1)      Create Purchase Order (ME21N) / Display (ME23N)

SAP Menu -> Logistic -> Material Management -> Purchasing -> Purchase Order -> Create -> Vendor / Supplying Plant known

2)      Goods Receipt (MIGO)

SAP Menu -> Logistics -> Materials Management -> Inventory management -> Goods movement -> Goods Movement

3)      Invoice Receipt (MIRO)

SAP Menu -> Logistics -> Materials Management -> Logistics Invoice verification -> Document Entry -> Enter Invoice

4)      Vendor Payment (F-53)

SAP Menu -> Accounting -> Financial Accounting -> Accounts Payable -> Document Entry -> Outgoing Payment -> Post

5)      Vendor Line item Display (FBL1N)

 

Unit of Measure in Inventory Management

A product can have multiple units of measures. This helps the enterprise clearly define the units in which they can be procured, manufactured, packed and ordered.

Product Name: Watch

Unit: PC

Conversion Unit: 1 box = 50 PC

Initial Entry of Stock Balances

It means when you implement the SAP system in order to record the starting physical stock balance from lagacy system, in this process no any physical movement occurs during this process.

The Initial Entry of Stock Balances can take place by posting to three stock types.

Unrestricted-Use stock - Movement Type (561)

stock in quality inspection - Movement Type (563)

Block Stock - Movement Type (565)

 

1)      MM60 (To Check Material List)

2)      MM02 (Update Unit of Measurement)

3)      ME11 (To Create Info Record)

4)      ME21N (Create Purchase Order)

5)      MIGO (Goods Receipt)

6)      MMBE (Stock Overview)