SAP S/4HANA Implementation SAP MM Overview Training April 2019
SAP S/4HANA ImplementationSAP MM Overview TrainingApril 2019
1. SAP Overview
2. Material Management (MM) Overview
3. MM Organizational Structure
4. MM Master Data
5. Procurement Process
6. Inventory Management
Agenda
SAP Overview
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SAP Overview
SAP stands for Systems, Applications and Products in Data Processing.
It is an enterprise-wide software application with modules based on business areas such as finance, sales, production and materials management.
These SAP modules are fully integrated and share common data.
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SAP Overview
SAP HANA
ERP
Material Management
(MM)
Sales and Distribution
(SD)
Human Capital
Management (HCM)
Plant Maintenance
(PM)
Project System (PS)
Finance and Controlling
(FICO)
Production Planning (PP)
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SAP Overview
Material Management Overview
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Material Management (MM) Introduction
Material Management (MM) module is fully integrated with other modules in SAP System.
Material Management (MM) Modules supports all the phases of Procurement Environment :
Material Planning & Control
Contract & Scheduling Agreement
Purchasing
Goods Receipt and Goods Issue
Logistics Invoice Verification
Transfer Posting
Physical Inventory
SAP HANA
ERP
Material Management
(MM)
Sales and Distribution
(SD)
Human Capital
Management (HCM)
Plant Maintenance
(PM)
Project System (PS)
Finance and Controlling
(FICO)
Production Planning
(PP)
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Material Procurement Flow
Internal and ExternalAccounting
Sales and Distribution
Material Requirements Planning
External ProcurementPurchasing
Internal ProcurementProduction
Inventory Management
Invoice Invoice Verification
Master Data•Material•Vendor•PIRInvoice
Receipt
Goods
Receipt
Goods
IssueTransferPosting
WarehouseManagementWarehouse
Management
Material Procurement Flow involves several steps and integrates with other modules like PP,
SD, WM, FICO
Organizational Structure
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MM Organizational Structure
Company -Client
Company -Client
Company Code 1
Company Code 1
Plant 1000Plant 1000
Storage Location
0001
Storage Location
0001
Storage Location
0002
Storage Location
0002
Plant 1100Plant 1100
Company Code 2
Company Code 2
Plant 2000Plant 2000
Cross-Plant
Purchasing Org.
Central
Purchasing Org.
Plant-specific
Purchasing Org.
Purchasing
Group 1
Purchasing
Group 2
Master Data
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Material Master Data
The material master is a central data object in the SAP System.It contains the data on raw materials, operating resources,
semi-finished products, finished products,
production resources/tools.....which are used by transactions
in many modules of the SAP system.
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Material Master Data
MaterialMaster Record
MRP
Stocks inplant/warehouse
Accounting
WarehouseManagement
Storage
Basic Data
Purchasing
Sales
Forecasting
Work scheduling
Data in Views with/without Organization
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Purchasing data Accounting data
General data
Vendor MasterRecord
The vendor master record consists of
three areas:
General data
Data that applies equally to each
company code within enterprise
(address, telephone number, language to
communicate with vendor, etc.).
Accounting data
Accounting data is maintained at
company code level, include Tax
Information, Bank details, Reconciliations
account, Payment terms…
Purchasing data
Purchasing data is entered at Purchasing
Organization level, includes control data
required in purchasing, purchasing
default fields…
Business Partner (Vendor)
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Business Partner (Vendor)
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Describe the supply relationship for a material and a vendor
Data Includes:
• Material number
• Vendor number
• Vendor-specific data on deliveries, delivery tolerance, pricing and text
During purchase order entry, data can be proposed from PIR into the PO.
ExampleIn case “Engine oil filter” is procured from two different vendors E.gMarubeni and Multico then two different Purchasing information records needs to be maintained in system. This is to ensure the Price, Procurement time are accurately maintained in system based on the source.
Vendor Procurement time
Price
Marubeni 7 200 USD
Multico 14 150 USD
Item: Engine Oil filter
Purchasing Information Records
Procurement Process
Procurement Process
Requisition
ProcurementProcurement
6
4
27SourceSource
determinationdetermination
1 Requirements determinationRequirements determination
Goods receipt andGoods receipt andinventory managementinventory management
8 Payment
3 Vendor selectionVendor selection
10
20
30
PurchaseOrder
10
20
30
Order processingOrder processing
Vendor
invoice
5 Order follow-upOrder follow-up
PurchaseOrder
10
20
30
?
Invoice verificationInvoice verification
Procurement Process
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Quotation
PurchaseRequisition
Quotation
PurchaseOrder
RFQ
Sourceof
Supply
Vendor A
Vendor B
Vendor CRejectionLetter
Purchasing
Master data
RFQ campaign = common collective numberRFQ campaign = common collective number
RFQ 2
Vendor B
Material 1
Material 2
Material 3
RFQ 3
Vendor C
Material 1
Material 2
Material 3
? ? ?
RFQ 1
Vendor A
Material 1
Material 2
Material 3
Contract
Purchase Requisition Process
Purchase Order Process
Approval Process – Release Strategy
PR/PO
10
20
30
Approval Level n
PR/PO
10
20
30
Reject
Approve
Approval Level 1Approve
ReleasedPR/PO
10
20
30
PR/PO
10
20
30
Reject
• PR/PO Amount
• Other
parameters, i.e.
Plant,
Purchasing Org.
etc.
Release
Strategy
Release Strategy determines:
Whether this PR/PO need to go through approval process
How many level of approval required
Who are approvals
Based on:
Amount
Other parameters i.e. Plant, Purchasing Org. etc.
Procurement for Stock/Consumption
Subcontracting Process
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Return To Vendor
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Logistics Invoice Verification
Materials Management
Materials Management
AccountingAccounting
Order DocumentVendor
Delivery Date
Price Conditions
Materials
Quantities
Purchase Order
Accounting DocumentVendor
Quantity
Account Postings
Invoice Verification
InvoiceInvoice
GR DocumentDelivery Date
Materials
Quantity
Account Postings
Goods Receipt
Three Way Matching
Inventory Management
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Inventory Management
Inventory Management
handle all type of Goods
Movement, includes:
Goods receipts
From Vendor
From Production
Goods issue
To Consumption
To Production
To Customer
Transfer Posting
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Movement type describes the type of
stock posting in inventory. The
movement type is used for all types
of movements:
Goods Receipt
Goods Issue
Transfer
Reversal
Movement type determines:
Account determination
Field selection
Indicators
Etc.
Movement Type
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Movement Type
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Effect of Good movement
Material Document Accounting document
Relates only to one Company Code
DR Cr.
Trial Balance
For each material movement two documents are normally created:
Updating Stock
On a Quantity Basis
___________________Material MasterSpecial Stocks
___________________Stock Fields per Plant and Storage Location
On a Quantity Basis
___________________Material MasterSpecial Stocks
___________________Stock Fields per Plant and Storage Location
On a Value Basis__________________
G/L Accounts__________________
Debits and Creditsper
Company Code,Period
On a Value Basis__________________
G/L Accounts__________________
Debits and Creditsper
Company Code,Period
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Goods Receipt
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Materials can be issued to:
Cost objects: Cost center,
WBS element, Network,
Production Order etc.
Sales Order
Reservation
Delivery
Goods Issue
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Storage loc. 0001Storage loc. 0002 Storage loc. 0001
Stock transfer
Goodsreceipt
Goodsissue
Goodsreceipt
Mat.doc. Stock transfer
FI doc.Mat.doc.
GI
Unrestricted
use
GR
Unrestricted
use
Stock in
transfer
GR
Unrestricted
use
One-step procedure or Two-step procedureOne-step procedure or Two-step procedure
Plant 1 Plant 2Plant 1
GI
Unrestricted
use
GI
Unrestricted
use
Goodsissue
Stock Transfer
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Transfer Posting
SAP AG 1999
A
B B C
B
A
B B C
B
Stock inQI
Blockedstock
A
B B C
B
Unrestricted-use
stock
A
B B C
B
Consignment
stock
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Physical Inventory
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