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Introduction SAP R/3 – MM

Introduction SAP R/3 – MM. Mr. RG Nawin Krishna, Bsc(cs);Msc(psychology);MBA(HR);SAP(HCM/HR), - Nawin’s Training Academy. ERP-Software: SAP R/3. Sales and Distribution. Financial Accounting. Material Management. Controlling. Valuation. Foreign Trade/ Customs. Logistics Invoice

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Introduction SAP R/3 – MM

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  1. Nawin's Training Acadamy

  2. Introduction SAP R/3 – MM Mr. RG Nawin Krishna, Bsc(cs);Msc(psychology);MBA(HR);SAP(HCM/HR), - Nawin’s Training Academy Nawin's Training Acadamy

  3. ERP-Software: SAP R/3 Sales and Distribution Financial Accounting Material Management Controlling Nawin's Training Acadamy

  4. Valuation Foreign Trade/ Customs Logistics Invoice Verification Service Master Materials Management (MM) Purchasing MRP Product Catalog Material Master Service Entry Sheet Inventory Mgmt. Physical Inventory Components of Materials Management Nawin's Training Acadamy

  5. Organizational Data • A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions • Are static data and are rarely changed • The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured Nawin's Training Acadamy

  6. Organizational Structures Nawin's Training Acadamy

  7. Organizational Structures • Client • Company • Plant • Valuation Area • Storage Locations • Purchasing Organizations • Purchasing Groups Nawin's Training Acadamy

  8. Organizational Structures: Client • The client is a unit within an SAP R/3 system that is self-contained both in legal and organizational terms and in terms of data, with separate master records and an independent set of tables. • From a business viewpoint, the client represents a corporate group, for example. • Client: 3 numerical digits Nawin's Training Acadamy

  9. Organizational Structures: Company • The company is the smallest organizational unit of external accounting for which a complete, self-contained bookkeeping system can be replicated. • A company code represents an independent unit producing its own balance sheet, for example, a company within a corporate group (client). • Company code = 4 characters Nawin's Training Acadamy

  10. Organizational Structures: Plant • Lowest valuation area • Organizational level where Material Requirements (MRP) runs • Generally used to describe a production site, a distribution center or centralized warehouse • May be a physical or logical unit Nawin's Training Acadamy

  11. Organizational Structures: Valuation Area • The valuation area determines at which level a material is valuated (inventory value is established) • SAP R/3 allows valuation at the company code or plant level, but recommends valuation area be set at the plant level. • Means each plant can have its own material prices and account determination Nawin's Training Acadamy

  12. Organizational Structures: Storage Location • Subdivision of a plant • Where materials are managed (inventory management) • Raw Materials • Maintenance, Repair, and Other (MRO) • Finished Product • May be a physical or logical unit Nawin's Training Acadamy

  13. Organizational Structures: Purchasing Organizations • An organizational unit responsible for procuring materials or services for one or more plants and for negotiating general conditions of purchase with vendors. • The purchasing organization assumes legal responsibility for all external purchase transactions. Nawin's Training Acadamy

  14. purchasing group MG 2, 5 purchasing group MG 6 purchasing group MG 7, 8, 9 Purchasing organization material group purchasing organization purchasing group MG 0, 3 purchasing group MG 1, 4 plant Nawin's Training Acadamy

  15. Organizational Structures: Purchasing Organization Groups • The purchasing organization is further subdivided into purchasing groups (buyer groups), which are responsible for day-to-day buying activities. • A purchasing group can also act for several purchasing organizations. • A purchasing group can be defined by line products (Frame, Engine, Tires…) Nawin's Training Acadamy

  16. Inventory Management with a Warehouse Management System 0001 – ABC inc. client company code 0001 – Jones inc. 0002 – Model Ltd. purchasing organization 0001 0002 0003 MM distrib.- center 0001 0002 0003 0004 0001 factory plant 0001 0002 0003 0004 storage location warehouse number 001 WM storage type 001 002 (physical stock) storage bin 05-04-03 05-04-04 Nawin's Training Acadamy

  17. The Module MM – Main Functions Nawin's Training Acadamy

  18. MM – interdependencies to other modules Logistik PP productionplanning MM material master purchasing requirements plan. inventory mgmt. invoice verification SD sales anddistrib. QM quality management PM plantmaintenance FI financial acc. CO controlling AM fixed assets mgmt. Nawin's Training Acadamy

  19. Basic Data • Master records - include information about • vendors • material and services to be procured • the relation between 1. and 2. (purchasing info record)e.g. prices / terms and conditions • bills of material for • production planning • purchasing • sales and distribution • withdrawal of Material Nawin's Training Acadamy

  20. Structure of the Vendor Master Record sections utilization area of validity • General data • name • address • control data client wide • request for quotation • quotation processing • purch. order handling for eachpurchasingorganization • purchasing • terms and cond. • partner functions • currency • invoice entry • invoice verification • payment handling client wide or for each company code • accounting data • bank account • acc. maintenance • payment Nawin's Training Acadamy

  21. Create a Vendor Creating Your Own Vendor Master Record  Usage We recommend that you create your own vendor master record for this scenario. If, however, you prefer to use the reference vendor instead, it could be that the order currency has already been changed and this IDES scenario may no longer work. You create a German vendor in company code 1000, IDES AG Germany, to create purchase orders and invoices denominated in euros. Nawin's Training Acadamy

  22. Create a Vendor • Procedure • Call up the transaction as follows: Nawin's Training Acadamy

  23. . Create a vendor On the Create Vendor: Initial Screen, enter the following data: Nawin's Training Acadamy

  24. Create a Vendor On the Create Vendor: Address screen, enter the following data: Nawin's Training Acadamy

  25. Create a Vendor Choose until you reach the Create Vendor: Accounting and make sure that 160000 appears in the Reconciliation Account 160000 field. Choose until the Create Vendor: Purchasing Data screen appears. On the Create Vendor: Purchasing Data screen, check that the order currency is EUR. Choose until the Create Vendor: Partner Functions screen appears. Choose until the Create Vendor: Partner Functions screen appears. Choose until the Create Vendor: Partner Functions screen appears. Nawin's Training Acadamy

  26. Create a Vendor Nawin's Training Acadamy

  27. Create a Vendor Nawin's Training Acadamy

  28. Create a Vendor Nawin's Training Acadamy

  29. Views on the Material Master Record each view is maintained by a certain user department of the firm • accounting: valuation- und calculation-specific information • requirements planning: information about material requirements planning (e. g. reorder point) • purchasing: e. g. responsible purchasing group, order unit • engineering: technical information • storage: information about warehousing, material movements, ... • forecast: information about the forecasting of the material requirements • S & D: informationen about sales orders and price determination Nawin's Training Acadamy

  30. Demo: Create Material Master Nawin's Training Acadamy

  31. Demo: Create Material Master • Select the views: Basic data 1, Purchasing, Purchase Order text, Gl. Plant Data/Storage 1, Accounting 1 Nawin's Training Acadamy

  32. Demo: Create Material Master Nawin's Training Acadamy

  33. Demo: Create Material Master Nawin's Training Acadamy

  34. Demo: Create Material Master Nawin's Training Acadamy

  35. Demo: Create Material Master Nawin's Training Acadamy

  36. Demo: Create Material Master Nawin's Training Acadamy

  37. Demo: Create Material Master SAVE Nawin's Training Acadamy

  38. info record prices terms & cond. PO statistics tolerance levels date quotation outlineagreement order purchasing info record vendor data material data Nawin's Training Acadamy

  39. PO invoice ? = MM vendor vendor 1 goods received & inventory mgmt. vendor 2 PO PO PO invoice verification determination: requirements vendor selection PO monitoring Purchasing Process requirem. planning outline agreem. determination: source of supply ? purchase order processing Nawin's Training Acadamy

  40. 1 2 vendor 2 vendor 2 outlineagrement purch. order purch. order purch. order purch. req. Create Purchase Order (PO) vendor known terms & cond. source list info record vendor not known vendor 3 assigned purchaserequisition exists(from user department) Nawin's Training Acadamy

  41. Purchasing Process • Create a requisition • First release of requisition • Create RFQ (Request for Quotation) with reference to requisition • Create PO (Purchase Order) with reference to RFQ • Department receives material ordered (GR) • Department pays invoice (MIRO). Nawin's Training Acadamy

  42. Purchase Requisition Document generated by a user department or storeroom-personnel to notify the purchasing department of items it needs to order, their quantity, and the timeframe. It may also contain the authorization to proceed with the purchase. Also called purchase request or requisition. Nawin's Training Acadamy

  43. Request for Quotation Is a standard business process whose purpose is to invite suppliers into a bidding process to bid on specific products or services. RFQ generally means the same thing as IFB (Invitation For Bid) Nawin's Training Acadamy

  44. Purchase Order Buyer-generated document that authorizes a purchase transaction. It sets forth the descriptions, quantities, prices, discounts, payment terms, date of performance or shipment, other associated terms and conditions, and identifies a specific seller. Nawin's Training Acadamy

  45. Create Purchase Requisition Nawin's Training Acadamy

  46. Create Purchase Requisition Nawin's Training Acadamy

  47. Create Purchase Requisition • In the item, enter your material, Plant= 1000, QT = 100 Nawin's Training Acadamy

  48. Create Purchase Requisition • Save your Purchase requisition • Take note of Purchase requisition number Nawin's Training Acadamy

  49. Demo: Create Purchase Order Nawin's Training Acadamy

  50. Demo: Create Purchase Order • Open document overview: Click on document overview button • Choose “Selection variant list” icon • Then select “My purchase requisition”, you will get your purchase requisition listed • Click on “adopt” icon, your purchase requisition will be copied to the purchase order (or you can drag and drop it into the shopping cart) Nawin's Training Acadamy

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