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SAP MM/WM Configuration Pack Enterprise Structure Published by Team of SAP Consultants at SAPTOPJOBS Visit us at www.sap- topjobs.com
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MM Enterprise Structure Configuration

Apr 04, 2015

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Vijay Kumar G
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Page 1: MM Enterprise Structure Configuration

SAP MM/WM Configuration Pack

Enterprise Structure

Published by Team of SAP Consultants at SAPTOPJOBS

Visit us at www.sap-topjobs.com

Copyright 2006-07@SAPTOPJOBS

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form, or by any means electronic or mechanical including photocopying, recording or any information storage and retrieval system without permission in writing from SAPTOPJOBS

Page 2: MM Enterprise Structure Configuration

INDEX1. Over-view:------------------------------------------------------------------------------------42. Getting into the Configuration area of SAP-----------------------------------113. Enterprise structure--------------------------------------------------------------------14

3.1 Define valuation level------------------------------------------------------------163.2 Define Plant--------------------------------------------------------------------------183.3 Maintain plant details and Factory calendar in Plant---------------213.4 Define Location---------------------------------------------------------------------233.5 Maintain Storage Location-----------------------------------------------------253.6 Maintain Purchase organization---------------------------------------------293.7 Assign Plant to company-------------------------------------------------------313.8 Assign purchase organization to the company code---------------323.9 Assign purchase organization to plant------------------------------------33

4. Material Master---------------------------------------------------------------------------344.1 Assign field to field selection groups--------------------------------------354.2 Define plant specific field and screen selection----------------------394.3 Define material type-------------------------------------------------------------404.4 Define Number range for each material type--------------------------444.5 Define industry sector-----------------------------------------------------------464.6 Maintain user specific settings-----------------------------------------------474.7 Set material block for goods movement---------------------------------504.8 Define storage location MRP per plant-----------------------------------52

Page 3: MM Enterprise Structure Configuration

It gives me a great thrill to present before you the SAP

MM/WM configuration pack. All this would not have been

possible without your best wishes . We thank you from the

bottom of our heart for giving us a chance to serve you . For

imposing this faith in us we want to ensure that we provide

you with the most competent, professional and step by step

configuration in SAP MM/WM which will help you reduce your

learning curve significantly and help you execute projects

with more confidence and style.

We have tried our best to structure it in a manner which is

conducive to focused learning and we would love to hear

back from you and we will do our very best to ensure that

you achieve all your goals in SAP.

Happy reading and wish you the very best in your SAP

career.

If any of you dear readers would like to receive a special gift

from me, send me your comments on my book:

MY EMAIL ADDRESS IS:

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Page 4: MM Enterprise Structure Configuration

1. Over-view:-

MM Module is the one of the most important logistics modules in SAP. MM module covers the following basic functions

Planning

Procurement

Inventory Management

Planning: -

The following are the two types of planning in MM module.

Consumption Based Planning Material Requirement Planning

Consumption Based Planning is based on past consumption pattern. In this type of planning requirement is triggered by the stock level and NOT by any planned independent requirement or dependant requirements.

Material Requirement Planning is the detailed planning based on requirements and stock levels.

Procurement: -

Procurement activities involves everything from the stage of identifying vendors up to making payments to the respective vendor.

The following are the important procurement functions: -

Page 5: MM Enterprise Structure Configuration

Identify the vendor

Negotiate the terms and conditions

Release the purchase order

Follow up for supplies

Ensure right quantity and quality materials are received at right time

Ensure payment to the vendor at right time as per the agreement terms.

Procurement Proposals: -

As a result of planning, procurement proposals are created for the net requirement quantities either in terms of planned order or as purchase requisitions.

If it is a planned order, it has to be converted to the purchase requisition. This is an important function between planner and the procurement person.

If purchase requisitions are directly generated, it has to be converted to purchase order.

Purchasing: -

Purchasing is the process of releasing the document to the identified vendor authorizing him to supply the materials at a negotiated price.

Three important purchasing methods are

a. Purchase Order

b. Contracts

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c. Scheduling Agreement

a. Purchase Order: - It is the process of issuing PO to the vendor requesting him to supply according to the requirements as a one time or as per the delivery schedule.

b. Contracts: - Contracts of quantity based or rate based can be issued to the vendor authorizing him to supply till reaching certain quantities or certain value of supply is reached. Every contract will have a release order.

c. Scheduling Agreement: -

Scheduling agreement is similar to PO. It will specify the quantity, rate but the schedule of delivery will be informed through the delivery schedule to the vendor.

Each scheduling agreement will have a delivery schedule. If scheduling agreement is available with a vendor, MRP can automatically create the delivery schedule instead of PR or Planned order during MRP run.

Inventory Management: -

Entire stocks and material movements are dealt in inventory management. Each material movement is associated with a movement type number. Movement type is responsible to determine the right GL account for FI postings.

When performing the inventory management transactions system performs the following actions instantly

Material document is generated FI document is generated Controlling document is generated Inventory is adjusted

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Inventory Management is tightly integrated with MRP and MRP data.

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Master Data in MM: -

As in every module, Master data plays a major role in MM module as well. Following are the important master data in MM module.

Material Master (across all modules)

Vendor Master

Purchase Info record

Quota arrangement (MM and PP modules)

Source List

Integration of MM with other Modules: -

Materials Management and its component inventory management is directly linked with MRP, purchasing and invoicing for vendor supplies.

MRP takes the inventory into account and also the expected receipt and issues during MRP run which is the vital data for successful MRP.

MM with PP

Staging of components for production order

Receipt of finished products into the warehouse

MM with QM

A movement type determines whether the material is subject to QM or not.

Goods posted to QM stock if it is subjected to QM

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MM with SD

Availability check can be carried out on creating sales order

As soon as the delivery against the sales order is created, that quantity is marked for delivery and deducted from stock when performing post goods issue (PGI) for delivery.

Special sales order stocks can be maintained.

MM with PM

Goods movements are performed with respect to Equipment BOM Maintenance order With serial number management, serial number can be

entered with every serial number

MM with FI

When posting the material movements, GL accounts are determined through movement type and valuation class information.

Entire accounting entries are posted instantaneously

OK friends, having understood the over view of MM module; let us try to look at what is there in store with this MM pack for you.

Page 10: MM Enterprise Structure Configuration

For ease of learning and better understanding of MM module, it is divided in to five topics as mentioned below.

Enterprise structure

Planning

Master Data and PR

Purchasing

Inventory Management

To the each one of the above topic, complete configuration, user manual and power point presentation is provided.

Configuration - Enterprise Structure: -

Define PlantDefine Storage LocationAssign Plant to a companyDefine Purchase OrganizationPurchase organization assignmentDefining material master field selectionMaterial Master Plant specific field selectionDefine Material TypeDefine number range for material typeDefine Industry sector for material master.

Configuration - Planning:-

Complete configuration of Material Requirement Planning

Consumption based planning

Configuration - Master Data and PR: -

Define system message attributesDefining purchase value key

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Define payment termsDefine Inco termsDefine Account Group (Field selection for vendor

master)Define number range for account groupDefine purchasing groups

Define copying rulesDefine Document typesConfigure Release strategy for PR

Configuration – Purchasing: -

Define Document typeDefine Number RangeDefine tolerance limit for price varianceRelease procedure for Purchase ordersConfigure stock transport ordersDefine Access SequenceDefine Condition TypeDefine calculation schemaDefine Schema determinationAccount Determination

Configuration – Inventory Management: -

Define Plant ParametersDefine Field selection for goods movementsMovement type settingConfigure automatic storage location creationDefine screen layoutDefine availability check for movement typesConfigure negative stockDefine output determinationConfigure stock determinationConfigure split valuation

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Page 13: MM Enterprise Structure Configuration

2. Getting into the Configuration area of SAP

BACKGROUND

There are two types of access to the user in SAP.

1. Easy access - used to access daily transactions2. Project view or IMG – used to access for

configuration.

SAP Easy access is to perform the master data maintenance and perform transaction. SAP configuration is to maintain the backend settings according to the business requirements.

Access to each transaction is controlled by authorization. Follow the steps explained here to get into the configuration area in SAP.

INSTRUCTIONS

1. Type SPRO in the SAP main screen dialog box,

2. Click

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3. Click on

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4. Click appropriate node to look at more details.

When the menu path is mentioned as “IMG”, follow the above steps.

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3. Enterprise structure

Enter price structure describes the entire organization details. Organizational details are broadly divided into the two areas like financial area and logistics area.

Financial area deals with

company code

controlling area

Currency and more.

Logistics area deals with

Plant

Storage location

Sales organization

Sales Distribution channel

Sales Division etc.

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Organisational Units: Materials Management

Companycode

Companycode

ControllingArea

ControllingArea

PlantPlant

CompanyCompany

Purchasing OrganizationPurchasing Organization

Storage location

Storage location

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3.1 Define valuation level

BACKGROUND

This configuration setting enables to define at which level the stock are to be valuated in SAP.

Stocks can be valuated at following two levels in SAP.

Plant level

Company code level

It is recommended to keep at plant level. This is a client level setting.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Definition Logistics - General Define valuation level

1. Click

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2. Select the radio button

3. Click Save

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3.2 Define Plant

BACKGROUND

This configuration setting enables to define the plant. Each manufacturing facility or branch of a company is defined as a plant in SAP.

Plant is assigned to the company code.

Storage locations are created under each plant.

If the valuation level is the plant, the stocks are valuated at plant level.

Note: - It is common practice to copy plan from the existing defined plant. It will be defined by the FI.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Definition Logistics - General Define copy, delete, check plant

1. Click

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2. Click

3. Click

4. Click

5. Enter from plant as 0001 to copy from SAP defined plant

6. Enter To Plant – E.g. IND6

7. Click

8. Click to return to main menu.

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Note: - Definition of plant and assignment of plant to the company codes along with relevant GL accounts is done by the FI team. However the creation of plant is demonstrated.

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3.3 Maintain plant details and Factory calendar in Plant

BACKGROUND

When copying the plant, the entire details will be copied from the source plant. Address of the plant and other details attached to the plant can be changed.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Definition Logistics - General Define copy, delete, check plant

1. Double click

2. Select plant IND6 by clicking the grey box in the left side

3. Click

4. Click

5. Maintain the entire address, contact details of the plant.

6. Factory calendar must be attached to the plant

Below screen shows the details of plant settings.

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Page 25: MM Enterprise Structure Configuration

3.4 Define Location

BACKGROUND

This configuration setting enables to define the location. Location indicates where the materials are stored inside the plant.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Definition Logistics - General Define Location

1. Click

2. Click

3. Update required and optional fields:Field Name Description ValuePlant Name of the plant e.g. IND6Location Location

identificationE.g. PROD

Name Description of the location

Production location

4. Click

Note: - Maintain the address of the location in the subsequent screen.

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5. Enter title as Company

6. Enter country

7. Click

8. Click .

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3.5 Maintain Storage Location

BACKGROUND

This configuration setting enables to define the physical storage location. This will indicate where the stocks are stored physically inside the plant.

Each item must have storage location. One material can be stored in many storage locations.

Storage locations can be assigned to the warehouse through warehouse management.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Definition Materials Management Maintain storage location

Click

Enter the plant where the storage location is to be created. E.g. IND6

Click

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Click

Enter Storage location

Enter description of the storage location

Click

Select the storage location

Double Click

Enter the sequential number 1

Click

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Select the sequence number

Click

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Maintain the address.

Click

Click

Repeat the above to maintain the address for all storage locations.

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3.6 Maintain Purchase organization

BACKGROUND

This configuration setting enables to define the purchase organization.

Purchase organization is the part of the enterprise structure from MM point of view. It represents the responsibilities to

Procure materials and services

Negotiation with vendor

Purchase organization is assigned to the company codes and plants. Following are the possibilities of assignments.

One purchase organization to many company codes

One purchase organization to one company code

One purchase organization to one plant

Note: - It must be assigned to plant.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Definition Materials Management Maintain purchase organization

1. Click

Page 32: MM Enterprise Structure Configuration

2. click

3. Update the following fields

Field Name DescriptionPurch.organization Key identifying the purchase

organization. E.g. IND6Purch.org.descr. Description of the purchase

organization. E.g. For plant IND6

4. Click .

Page 33: MM Enterprise Structure Configuration

3.7 Assign Plant to company

BACKGROUND

This configuration setting enables to assign plant to the company code.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Assignment Logistics – General Assign plant to company code

1. Click

2. Select the desired company code by clicking the cursor on it.

3. Click

4. Select the plant from the display

5. Click

6. Click .

Page 34: MM Enterprise Structure Configuration

3.8 Assign purchase organization to the company code

BACKGROUND

This configuration setting enables to assign the purchase organization to a company code.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Assignment Materials Management Assign purchase organization to company code

1. Click

2. Select the desired company code by clicking the cursor on it.

3. Click

4. Select the purchase organization

5. Click

6. Click

Page 35: MM Enterprise Structure Configuration

3.9 Assign purchase organization to plant

BACKGROUND

This configuration setting enables to assign the purchase organization to a plant.

INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Assignment Materials Management Assign purchase organization to plant

1. Click

2. Select the desired plant by clicking the cursor on it.

3. Click

4. Select the purchase organization

5. Click

6. Click

All right guys, not much about MM organization structure. Now we shall look into material master related to configurations.

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4. Material Master

Material master contains all information about a material. All the information have to be maintained by the different end users.

Example:

Physical, sales and storage related details of a material is maintained by the logistics team

Finance related information is maintained by the finance team

Quality related information is maintained by the QM team

Views on a Material Master

Materialmaster

MRP

St

t

Purchasing

Sales

Workscheduling

Storage

Qualitymanagement

Warehousemanagement

Classification

Forecasting

Accounting

Basic Data

Ok, now let’s go to the configuration details of material master.

Page 37: MM Enterprise Structure Configuration

4.1 Assign field to field selection groups

BACKGROUND

This configuration setting enables to define the field in the material master as mandatory or optional or to hide.

Let’s try to make the purchasing value key as mandatory entry for plant IND6.

INSTRUCTIONS

Follow the Menu Path: IMG Logistics – General Material master Field Selection Assign fields to field selection groups

1. Click

Page 38: MM Enterprise Structure Configuration

2. Click in purchasing value key row

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3. Create new field ref by copying from the standard SAP entry. E.g. IND6 as field reference.

4. Click

5. Select the field selection as required entry

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6. Click

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4.2 Define plant specific field and screen selection

BACKGROUND

When there are more than one Bill Of Material, system will select the first alternate by default.

It can be configured in such a way that system takes the right alternate for a given period.

INSTRUCTIONS

Follow the Menu Path: IMG Logistics – General Material master Field Selection Define plant specific field selection and plant specific screen selection

1. Click

2. Maintain field reference as IND6 for plant IND6.

3. Click Save .

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4.3 Define material type

BACKGROUND

Similar to the above alternate defining in production area, for other areas like Inventory, MRP, Costing, Sales and Distribution and Plant Maintenance can be maintained.

Only the menu path is given here and the rest of the settings are similar to above 1.1.8.

INSTRUCTIONS

Follow the Menu Path: IMG Logistics – General Material master Basic settings Material types Define Attributes of Material Types

1. Click

2. Select ROH by clicking the grey box in the left

3. Click to copy from ROH to the new material type

4. Type the new material type as YROH

5. Maintain the field reference as FERT

6. Select sales view

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Note: - Standard settings are sufficient.

Field name DescriptionField reference Field references are taken

from this material type.X plant material status Cross plant material status to

restrict the usage of material in all the plants.

Item category group Default item category group to determine the item category for the material type.Tick in this check box will make the initial status of the batch as restricted.

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Tick in this check box will not check with the external number range when creating the material master.Price control which will appear in the material master. However it can be changed in the material master.Indicates that the Quantity update in specific valuation area.Indicates that the value update in specific valuation area.

Double click

Select the check box only in the relevant valuation area. E.g. IND6, IND7 and IND9

7. Click

8. Click

9. Click Save

Effect of this configuration setting with initial status check box ticked.

When the new batch is created, the initial status of that batch will be restricted.

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Note: -

Considering the restricted batch for MRP will be controlled by the IMG setting for MRP.

The batch status can be changed to unrestricted-use only through manually or through the QI Usage decision.

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4.4 Define Number range for each material type

BACKGROUND

This configuration setting enables to define the number range for material type.

Each material type must have a number range so as to enable to create the material of that type.

INSTRUCTIONS

Follow the Menu Path: IMG Logistics – General Material master Basic settings Material types Define Number Range for Each Material Type

1. Click

2. Click

3. Click F6 or from the top, follow the menu path. GroupInsert to insert the new group

4. Maintain the Text for the new group and maintain the interval for internal and external number range

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5. Click .

6. Click to assign to the material type

7. click on the material type from the Not assigned list

8. Click

9. Tick the group check box to which number range is to be assigned to this material type

10. Click

11. Click .

Page 48: MM Enterprise Structure Configuration

4.5 Define industry sector

BACKGROUND

This configuration setting enables to define the industry sector and field selection specific to the industry sector.

Industry sector definition is the one through which any screen sequence can be changed. Industry sector is the mandatory entry when creating the material master.

INSTRUCTIONS

Follow the Menu Path: IMG Logistics – General Material master Field Selection Define industry sector and Industry-sector-specific field selection

1. Click

2. Select the Mechanical engineering by clicking the grey box in the left

3. Click

4. Maintain industry sector. E.g. Z

5. Maintain industry description. E.g. Mechanical engineering-sp

6. Maintain field reference. E.g. IND6

7. Click

8. Click

Page 49: MM Enterprise Structure Configuration

4.6 Maintain user specific settings

BACKGROUND

This configuration setting enables to maintain the setting for material master creation specific to the user.

By this way, users can be restricted from accessing certain data.

INSTRUCTIONS

Follow the Menu Path: IMG Logistics – General Material master configure the material master Maintain User settings

1. Click

2. Click

Maintain the entries as shown below.

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3. Click 4. Click

Maintain the entries as shown below

5. Click

Effect of this configuration

When user sapuser6 try to create material master, industry sector will not appear to him.

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Page 52: MM Enterprise Structure Configuration

4.7 Set material block for goods movement

BACKGROUND

This configuration setting enables to define the block for material. This is essential to prevent usage of same material by different user at a given instance.

INSTRUCTIONS

Follow the Menu Path: IMG Materials Management General settings for Materials Management

1. Click

2. Select the appropriate material block

Lock exclusively – when the material master is read during the goods movement, plant data and accounting data are locked till the material is posted.Another user can not use this material at this time.

Late lock – data will be blocked only at the time of saving.

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3. Click

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4.8 Define storage location MRP per plant

BACKGROUND

This configuration setting enables to define the usage of storage location stock during MRP run.

INSTRUCTIONS

Follow the Menu Path: IMG Materials Management Consumption Based Planning Planning Define Storage Location MRP per plant

1. Click

2. Enter Plant. E.g. IND6

3. Click

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4. Select 1 to exclude storage location from MRP

5. Click

6. Click to reach main IMG menu

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