Sap mm configuration document ramesh kamishetty

SAP MATERIAL MANAGEMENT CONFIGURATION MANUAL

PREPARED BY RAMESH KAMISHETTY AT ITION Solutions Limited

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Contents Contents ........................................................................................................................................................ 1

1)Organization Structure .............................................................................................................................. 4

1)Client: ......................................................................................................................................................... 4

2)Company: ................................................................................................................................................... 4

3)Company code: .......................................................................................................................................... 4

4)Plant: .......................................................................................................................................................... 4

5)Storage location: ........................................................................................................................................ 5

6)purchase Organization: .............................................................................................................................. 5

7)Reference Purchase organization: ............................................................................................................. 5

8)Standard purchase Organization: .............................................................................................................. 5

9)Purchase group: ......................................................................................................................................... 5

Organization Structure flow chart ................................................................................................................ 6

To Define Organization Structure : ............................................................................................................ 7

To define Company: ...................................................................................................................................... 7

TO CREATE COMPANY CODE: ....................................................................................................................... 8

To Create Controlling: ................................................................................................................................. 10

To create/ copy Plant: ................................................................................................................................. 11

To Maintain Storage Location: .................................................................................................................... 12

To maintain purchase organization: ........................................................................................................... 13

To assign organization elements(structure) ............................................................................................... 14

To assign company code to company ..................................................................................................... 14

To assign controliing area: .......................................................................................................................... 16

To Assign plant to company code: .............................................................................................................. 17

To Assign purchasing organization to company code : ............................................................................... 18

To Assign purchasing organization to plant : .............................................................................................. 19



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To Assign standard purchasing organization to plant:................................................................................ 20

To Assign purch. organization to reference purch. organization: .............................................................. 20

To Create Purchase Group: ......................................................................................................................... 21

2.0)Master Data .......................................................................................................................................... 22

Material master ...................................................................................................................................... 22

Material Type: ......................................................................................................................................... 22

Control data for Material types: ............................................................................................................. 23

To Define number ranges for Material Master enter the following .......................................................... 25

To assign material number range to material type .................................................................................... 28

To Create Material master record: ............................................................................................................. 29

Vendor master ............................................................................................................................................ 32

To create vendor account groups: .............................................................................................................. 33

TO CREATE NUMBER RANGES FOR VENDOR ACCOUNT GROUPS: ............................................................. 34

TO ASSIGN NUMBER RANGES TO VENDOR ACCOUNT GROUPS: ............................................................... 36

TO CREATE VENDOR MASTER: .................................................................................................................... 36

Purchasing info record ............................................................................................................................ 40

To Create Purchasing INFO Record: ............................................................................................................ 40

Source list ................................................................................................................................................ 41

To Maintain Source List: ............................................................................................................................. 42

Quota arrangement .................................................................................................................................... 42

To Maintain Quota arrangement: ............................................................................................................... 43

Purchasing Documents ............................................................................................................................... 44

Document types .......................................................................................................................................... 44

Item Categories: .......................................................................................................................................... 45

Standard Item categories are: .................................................................................................................... 45

Account Assignment Category: ................................................................................................................... 45

1)Purchase Requisition ............................................................................................................................... 46

To Define Number Ranges for Purchase Requisition .............................................................................. 46

To Define Document Types for Purchase requisition ................................................................................. 47



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To create Normal Purchase requisition ...................................................................................................... 48

2)Request for Quotation/Quotation ........................................................................................................... 49

To create Request for quotation document number ranges: .................................................................... 49

To create RFQ Document types .................................................................................................................. 50

To create RFQ: ............................................................................................................................................. 51

To Maintain Quotation ............................................................................................................................... 53

3)Purchase Order ........................................................................................................................................ 54

To create purchase order document number range: ................................................................................. 54

To define Purchase Order Document type ................................................................................................. 55

To Create Purchase Order ........................................................................................................................... 56

4)Outline agreements ................................................................................................................................. 57

4a)Contracts ............................................................................................................................................ 57

To create contract ....................................................................................................................................... 57

To define Contract Number Ranges ........................................................................................................ 57

To define Contract Document types: .......................................................................................................... 58

To Create Contract: ..................................................................................................................................... 59

4b)Scheduling agreement ....................................................................................................................... 60



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1)Organization Structure Organization structure consists of organizational units, Organization structure is form frame work of

company in which company activities takes place.

1).Client.

2)Company.

3)Company code.

4).Plant.

5).Storage locations.

6).Purchase organization.

7).Reference purchase organization.

8).Standard Purchase organization.

9).purchase group.

1)Client: A client is a commercial Organizational unit within SAP R/3 system with its own data,

Master records and set of tables from the business prospective a client forms a corporate group. Client

is denoted by Max 3 digit code in SAP

2)Company: A company is a corporate group. Company is the highest and independent

organizational unit and that represents corporate group. Company denoted by Max 6 digit code in SAP.

3)Company code: A company code is an organizational unit for which you have an independent

accounting department with in external accounting. A company code represents an independent

accounting unit. A company code is denoted by Max 4 digit in SAP. Balance sheet, profit/loss

statements as required by law are prepared at company code level. Company code is a Branch with in a

company.

4)Plant: A plant is a logistics organization unit that structures the business prospective of planning,

procurement, production and maintenance. a plant represents manufacturing facility or a branch within

the company code, apart from manufacturing facility Corporate/Head office, Branch Office, Regional



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office, Warehouse, Depot, Service stations all can be created as Plants in SAP. Plant is denoted by MAX

4 digit code SAP.

5)Storage location: A storage location is a smallest organizational level, that allows the

differentiate task at Client level. Inventory management on quantity basis is carried out at storage

location level in a plant. Physical inventory carried out at storage location level. A storage location is not

an independent organizational unit in SAP MM Module.

6)purchase Organization: It is a Organizational element that negotiates conditions of

purchase with vendors for a plant or multiple plants. It is also responsible to complete purchasing

contracts. it is denoted by Max 4 digit code in SAP.

6a).Company specific Purchase organization

A purchase organization procures for a just

6b).Plant specific Purchase organization

6c).Corporate group wide purchase organization.

7)Reference Purchase organization: It represents the central purchasing department at

corporate group level, it takes care of strategic and Asset Procurement. it is denoted by Max 4 digit code

in SAP

8)Standard purchase Organization: It takes care of Consignment procurement process of

company it is denoted by Max 4 digit code in SAP.

9)Purchase group: It is a key given by a buyer or group of buyers responsible for certain

purchasing activities. I t is an Independent organizational element and it is not assigned to any of the

organizational units in Organization structure.



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Organization Structure flow chart

Organization Structure

Company

Company code Company code

Plant 1 Plant 2 Plant 1 Plant 3

Plant 1 Plant 1

Storage 1 Storage 2

Storage 1

Storage 2

Plant 1 Plant 1

Purchase 1 Purchase 2

Purchase 1

Purchase 2

Plant 1 Plant 1

Reference

Purchase

Reference

Purchase

Purchase



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To Define Organization Structure :

To define Company: Path : SPRO > SAP REF IMG > Enterprise Structure >Financial Accounting > Define company (EXECUTE

/F8)



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TO CREATE COMPANY CODE:

Path : SPRO > SAP REF IMG > Enterprise Structure >Financial Accounting > Edit,

Copy, Delete, Check Company Code (EXECUTE /F8)



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press Enter and enter and enter and edit company code data



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click on save and company code edited.

To Create Controlling: Path > spro > sap ref Img > enterprise structure > Definition > Controlling > Maintain Controlling Area

(Execute /F8) and new pop up double click on > Maintain Controlling Area.



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To create/ copy Plant: Path > spro > sap ref Img > enterprise structure > Definition > > Logistics - General >Define, copy,

delete, check plant (execute /F8)



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To Maintain Storage Location: Path:spro > sap ref img > enterprise structure >definition > material management >Maintain storage

location(execute /F8)



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To maintain purchase organization: Path:spro > sap ref img > enterprise structure >definition > material management > Maintain



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purchasing organization(execute /F8)

To assign organization elements(structure)

To assign company code to company Path>spro > sap ref img > Enterprise Structure > Assignment > Financial Accounting> Assign company

code to company(execute/F8)



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To assign controliing area: Path>spro > sap ref img > Enterprise Structure > Assignment > Financial Accounting > controlling >

Assign company code to controlling area(Execute/F8)



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To Assign plant to company code: path >spro > sap ref Img > Enterprise structure >Assignment > Logistics - General > Assign plant to

company code(Execute / F8)



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To Assign purchasing organization to company code : path >spro > sap ref Img > Enterprise structure >Assignment > Materials Management > Assign

purchasing organization to company code(Execute/F8)



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To Assign purchasing organization to plant : path >spro > sap ref Img > Enterprise structure >Assignment > Materials Management > Assign

purchasing organization to plant (Execute/F8)



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To Assign standard purchasing organization to plant: path >spro > sap ref Img > Enterprise structure >Assignment > Materials Management > Assign

standard purchasing organization to plant(Execute /F8)

To Assign purch. organization to reference purch. organization: path >spro > sap ref Img > Enterprise structure >Assignment > Materials Management > Assign purch.

organization to reference purch. organization (Execute /F8).



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To Create Purchase Group: spro > sap ref Img > Materials management >Purchasing >Create Purchase groups(Execute /F8)



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2.0)Master Data

Material master A Material master is the place of all the data used for a material in SAP system. Material master contains

the information on all the materials that a company procures, produces, stores and sells. It is the

company's central source for retrieving material specific data. This information is stored in individual

master records, the material master is used by all components in the SAP Logistics systems.

Material Type: Material type categorized the Materials into different type.

Standard Material types are:

S no Code Description

1 ROH Raw Materials

2 HALB Semi Finished goods

3 FERT Finished Goods

4 VERP Packing Materials

5 ERSA Spare Parts

6 HAWA Trading Goods

7 DIEN Service/SD Module

8 NLAG Non Stock items

9 UNBW Non valuated Materials

10 HIBE Operating supplies/Consumables

11 HERS Manufacturing parts

12 PIPE Pipeline Material



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Control data for Material types: 1)Number ranges

1)Internal number ranges

2)External number ranges.

2a)External number ranges with system check

2b)External number ranges without system check.

3).screen layout/filed selection

4)Procurement types

4a).Internal Procurement

4b).External procurement

4b1).Vendors.

4 b2).Other Plants.

5)Price control

5a)Standard price(s)

5b)Moving average price(v).

Material types creation:

Path:SPRO>Logistic General>Material Master>Basic settings>Material types>Define attributes of

material types(F8/Execute) TCODE:OMS2



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Select Material type KROH and double click on qty/value update.



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To Define number ranges for Material Master enter the following path>SPRO>SAP REF IMG>LOGISTIC GENERAL>MATERIAL MASTER>BASIC SETTINGS>MATERIAL

TYPES>DEFINE NUMBER RANGES FOR EACH MATERIAL TYPES>F8 (execute) TCODE MMNR



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To assign material number range to material type



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To Create Material master record: Path > SAP Easy Access > Logistics > Material management > Material master > Create General > click

MMO1.



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press enter



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Vendor master Vendor master consists of three types

1)General data

2)Company code data

3)Purchasing data

Vendor are classified by using vendor account groups ,it is denoted by Max 4 digit code in SAP.



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Standard vendor account groups are:

S no Code Description

1 0001 Main vendor

2 0002 Goods supplier

3 0003 Alternate payee

4 0004 Invoice presented by

5 0005 Forwarding agent/freight vendors

6 0006 Ordering Address

7 0007 Plants

8 CPD One time Vendor

9 MNFR Manufactures

Control data for vendor account groups:

1)Number ranges

1a)Internal number ranges(Automatic)

1b)External number ranges(Manual)

2) Screen layout/Field selection.

2a).Mandatory

2b).Optional

2c).Display

2d).Hide/suppress.

3)Partner roles: 1)VN-Main vendor 2) GS-Goods Supplier 3)OA-Ordering Address

To create vendor account groups: Path> SPRO > SAP REF IMG > FINANCIAL ACCOUNTING NEW > ACCOUNTS RECEIVABLE AND PAYBLE >

VENDOR ACCOUNTS > MASTER DATA > Preparations for Creating Vendor Master Data > Define

Account Groups with Screen Layout (Vendors) CLICK ON EXECUTE (F8)



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TO CREATE NUMBER RANGES FOR VENDOR ACCOUNT GROUPS: Path> SPRO > SAP REF IMG > FINANCIAL ACCOUNTING NEW > ACCOUNTS RECEIVABLE AND PAYBLE >

VENDOR ACCOUNTS > MASTER DATA > Preparations for Creating Vendor Master Data > Create

Number Ranges for Vendor Accounts (CLICK ON EXECUTE/F8)



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TO ASSIGN NUMBER RANGES TO VENDOR ACCOUNT GROUPS: Path> SPRO > SAP REF IMG > FINANCIAL ACCOUNTING NEW > ACCOUNTS RECEIVABLE AND PAYBLE >

VENDOR ACCOUNTS > MASTER DATA > Preparations for Creating Vendor Master Data > Assign

Number Ranges to Vendor Account Groups (CLICK ON EXECUTE/F8)

TO CREATE VENDOR MASTER: PATH > SAP EASY ACCESS > SAP MENU > LOGISTICS > Materials Management > Purchasing > Master

Data > Vendor > Central > XK01 - Create(DOUBLE CLICK)./TCODE XK01.



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Purchasing info record Purchasing info record is a Purchasing master data created with combination of Material, Vendor for a

Purchasing Organization in a Plant with reference to Info category.

Info category Represents the type of Procurement.

Info category in SAP are

1).Standard

2).Sub Contract

3).Consignment

4).Pipeline

***Important information stored in info record is Price.

***Info records are useful for creating Purchase orders.

To Create Purchasing INFO Record: Path > sap easy access > sap menu > Logistics > Materials Management > Purchasing > Master Data >

Info Record > ME11 - Create (double click).



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Source list A source list represents a list of approved Vendors for a Material in a Plant.

* By using source list we can block the vendors

* By using source list we can the fix the vendors( fixed vendors means order will go to particular vendor)

*By using source list we can control the Purchasing officer.



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To Maintain Source List: Path > sap easy access > sap menu > Logistics > Materials Management > Purchasing > Master Data >

Source List > ME01 - Maintain(Double click).

Quota arrangement The quota arrangement specifies which portion of the total requirement of a material over a certain

period s to be assigned to particular vendor on the basis of quota.



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To Maintain Quota arrangement:

Path:sap easy access > sap menu > Logistics > Materials Management >

Purchasing > Master Data > Quota Arrangement > MEQ1 - Maintain.

Press enter

click on save icon



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Purchasing Documents Purchasing documents are identified by document category, it is single (one) digit character ID.

Document categories are in SAP are Standard ,we cannot create our own document categories.

S no Description Document Category

1 Purchase Requisation B

2 Request for Quotation A

3 Purchase Order F

4 Contract K

5 Scheduling Agreement L

Document types Purchasing Documents are further classified by Document types it denoted by 4 character ID.We can

create our own documents types by copying standard types.

S no Purchase document Category Type Description

1

Purchase Requisition

B

NB Standard Purchase Requisition

FO Framework Requisition

RV Outline agreement Requisition

2

Request for Quotation

A

AN Request for Quotation

AB Global Percentage Bid

3

Purchase Order

F

NB Standard Purchase Order

FO Framework Purchase order

UB Stock Transfer Purchase order

4

Contract

K

MK Quantity Contract

WK Value Contract

5

Scheduling Agreement

L

LP Scheduling Agreement

LPA Release Document

LU Stock Transport Scheduling Agreement



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Item Categories: It represents the type of procurement and it is denoted by single digit character ID.Item Category

defined in SAP are Standard or fixed, we cannot create our own item categories.

Standard Item categories are:

S no symbol Description

1 - (blank) Stock item/Inventory

2 D Service

3 K Consignment

4 S Third Party

5 U Stock Transport

6 T Text

7 B Limit

8 L Sub contract

Account Assignment Category: account assignment category in SAP is denoted by Single Character ID, we can create our own account

assignment categories by copying standards. Account assignment category required for Direct

consumption of material.

S no Symbol Description

1 - (blank) Stock

2 A Asset

3 C Sales Order

4 F Order

5 K Cost center

6 P Project

7 U Unknown

8 X Auxilary



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1)Purchase Requisition

To Define Number Ranges for Purchase Requisition

path:spro > sap ref Img >Materials Management > Purchasing >Purchase requisitions >

Define Number Ranges (Execute / F8)( Tcode OMH7)



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To Define Document Types for Purchase requisition path:spro > sap ref Img >Materials Management > Purchasing >Purchase requisitions > Define

Document Types (Execute / F8)



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To create Normal Purchase requisition path >sap easy access >sap menu > Logistics > Materials Management > Purchasing > Purchase

Requisition > ME51N - Create(Double click)



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2)Request for Quotation/Quotation

To create Request for quotation document number ranges:



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Path >spro > sap ref img >materials management > purchasing >request for quotation/quotation

>Define Number Ranges (Execute /F8)

To create RFQ Document types Path >spro > sap ref img >materials management > purchasing >request for quotation/quotation >

Define Document Types (Execute /F8)



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press enter and enter and save.

To create RFQ: path >sap easy access >sap menu > Logistics > Materials Management > Purchasing > RFQ/Quotation >

Request for Quotation > ME41 - Create(Double click)



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To Maintain Quotation path >sap easy access >sap menu > Logistics > Materials Management > Purchasing > RFQ/Quotation >

Quotation > ME47 - Maintain(Double click)



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3)Purchase Order

To create purchase order document number range: path >spro > sap ref Img > materials management > Purchasing > Purchase Order > Define Number

Ranges(Execute /F8)



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To define Purchase Order Document type path >spro > sap ref Img > materials management > Purchasing > Purchase Order > Define Document

Types(Execute/F8)



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To Create Purchase Order Path > sap easy access >SAP Menu > Logistics > Materials Management > Purchasing > Purchase Order >

Create > ME21N - Vendor/Supplying Plant Known (Double Click)(Tcode ME21N).



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4)Outline agreements

4a)Contracts

To create contract

To define Contract Number Ranges Path >spro >sap ref IMG >Materials Management >Purchasing >Contract >Define Number

Ranges(Execute /F8)



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To define Contract Document types: Path >spro >sap ref IMG >Materials Management >Purchasing >Contract > Define Document Types

(Execute /F8)



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To Create Contract: Path >sap easy access >sap menu >Logistics > Materials Management > Purchasing > Outline Agreement

> Contract > ME31K - Create(Double click) /Tcode ME31K.



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4b)Scheduling agreement

Sap mm configuration document ramesh kamishetty

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