mm cookbook

7/28/2019 MM Cookbook

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MM Cookbook - Process Flow

By Subhajeet Behera

Determination of RequirementsThe user department responsible is manually passing a requirement for materials to the purchasing

department via Purchase Requisition. Purchase requests are generated when business runs the MRPand Request are also generated based in Consumption based planning (CBP) for Production andEngg.Stores.

Determination of Source of SupplyThe purchasing component helps the buyer determine the sources of supply. User use the

determination of the source of supply to create Requests for quotation (RFQs) and then to enterquotations. User is accessing the existing Purchase Orders and Conditions in the System.

Vendor Selection and Comparison of QuotationsThe System is capable of simulating pricing scenarios and simplifies the selection of vendors by

making price comparisons between the various quotations.

Purchase Order ProcessingThe purchasing system adopts information from purchase requisition and the quotation to help to

create Purchase Orders. They are also creating manual purchase order directly for stock, non-stock

items, services etc.

Purchase Order MonitoringThe buyer monitor the processing status of the purchase order online at any time and determine

whether goods or an invoice have been received for the relevant purchase order item.

Goods Receipt and Inventory Management


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The Goods receiving requester confirms the receipt of the materials by simply entering the PurchaseOrder Number. The system compares the goods receipt quantity with the purchase order quantity. Byspecifying permissible tolerances, buyers can limit over deliveries and under deliveries of orderedmaterials.

PURCHASING

Purchasing Functionality is integrated with Inventory Management and Invoice Verificationwithin MM.

MM Cookbook - Enterprise Structure

By Subhajeet Behera

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 Definevaluation level


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1. Click

2. Select the radio button

3. Click Save

Define Plant

BACKGROUND

This configuration setting enables to define the plant. Each manufacturing facility or branch of a companyis 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


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1. Click

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.

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


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Click here to continue...

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 plantand 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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Define Location

BACKGROUND

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

INSTRUCTIONS

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

1. Click

2. Click


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3. Update required and optional fields:

Field Name Description ValuePlant Name of the plant e.g. IND6Location Location identification E.g. PRODName Description of the location Production location

4. Click

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

5. Enter title as Company

6. Enter country


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7. Click

Click .

Maintain Storage Location

BACKGROUND

This configuration setting enables to define the physical storage location. This will indicate where thestocks 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 Maintainstorage location

Click

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

Click

Click

Enter Storage location

Enter description of the storage location

Click


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Select the storage location

Double Click

Enter the sequential number 1

Click

Select the sequence number

Click


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

Procure materials and services

Negotiation with vendor

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

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

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 IND64. Click .

Assign Plant to company

BACKGROUND

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


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INSTRUCTIONS

Follow the Menu Path: IMG Enterprise structure Assignment Logistics General Assignplant 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 .

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 Assignpurchase 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

Assign purchase organization to plant

BACKGROUND

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

INSTRUCTIONS


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Follow the Menu Path: IMG Enterprise structure Assignment Materials Management Assignpurchase 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.

MM Cookbook - Vendor Creation

By Subhajeet Behera

Definition:-

Every vendor is identified with the code in SAP. It is called Vendor master record.Vendor master record contains details of

Address Payment terms Delivery terms Lead time to supply GL Account for reconciliation

Each vendor record will be created at company code and purchase organization level.

Normally vendor master contains the details of both accounts related and also purely purchasing related,hence it is created in consultation with FI team.

Menu Path:-

Logistics Materials Management Purchasing Master Data Vendor Central XK01Create


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Maintain Vendor code number, company code, Purchase organization and account group


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Click

Maintain

Maintain

Note: - Click to enter more lines in the address

Maintain

Maintain

Click


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Nothing specific to be maintained in this screen

Click


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Maintain the payment related details.

Click


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MM Cookbook - Create RFQ

By Subhajeet Behera

Definition:-

Purchase request is the requirement document created manually or through the MRP run. Purchaserequest is further processed to create Purchase order document.

It is possible to create Request for Quotation purpose.


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Let us create RFQ for a material.

Menu Path:-

Logistics Materials Management Purchasing RFQ/Quotation Request for Quotation ME41Create

Double Click ME41

Maintain the details as shown below


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Click


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Click here to continue.MM Cookbook - Create RFQ

...Previous

Enter collective number. Collective number is like a tracking number in PR creation used to grouptogether and process the RFQ.

E.g. RM10 to indicate Raw Material requirement for 10th

Month

Click

Click F7 key to maintain Vendor address

Maintain vendor as shown below
http://www.sapfunctional.com/MM/Cookbook/RFQ/Create2.htmhttp://www.sapfunctional.com/MM/Cookbook/RFQ/Create2.htmhttp://www.sapfunctional.com/MM/Cookbook/RFQ/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/RFQ/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/RFQ/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/RFQ/Create.htmhttp://www.sapfunctional.com/MM/Cookbook/RFQ/Create2.htm


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Click

Note: - Details will be copied from info record.

Click


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Click to enter material number and quantity


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Click

Click

Click

Message appear at the bottom

MM Cookbook - Maintain Quotation

By Subhajeet Behera

Definition:-

When the quote is received from the vendor, with reference to the request, quote can be maintained.

Quotation is the reply from vendor for our enquiry regarding the price and quantity and supply scheduleconfirmation.

Let us maintain the quotation for the RFQ 6000000007.


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Prerequisite:-

Manual confirmation from vendor must be availableRFQ must be available

Menu Path:-

Logistics Materials Management Purchasing RFQ/Quotation Request for Quotation ME47Maintain

Double Click ME47

Maintain the details as shown below


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Enter RFQ number

Click to maintain rate at item level details

Click to maintain condition record

Maintain discount and freight as shown below.


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Click here to continue...Click

Click

Enter the quotation validity period

Enter payment terms

Enter vendor quotation reference.

Maintain the details as shown below.
http://www.sapfunctional.com/MM/Cookbook/Quotation/Maintain2.htmhttp://www.sapfunctional.com/MM/Cookbook/Quotation/Maintain2.htmhttp://www.sapfunctional.com/MM/Cookbook/Quotation/Maintain2.htm


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Click to confirm the condition at header level


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Click

Click

Click


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Click

Note: - To compare the price from various vendor, use transaction code ME49 price comparison

MM Cookbook - Create Info record

By Subhajeet Behera

Definition:-

Purchase info record is the kind of template with all the information required to create purchase order. Foreach vendor, material and plant combination purchase info record can be created.

Info records are created for following types of transactions

Standard PO Sub contracting Consignment Pipeline

When creating PO, most of the information will be copied from info record into PO.


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Info record controls

Validity period for each vendor Indicates vendor as preferred vendor Blocking vendor from raising PO Source relevancy to MRP Supplying plant incase of STO

Menu Path:-

Logistics Materials Management Purchasing Master Data Info Record ME11 Create

Double Click ME11


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Maintain Vendor code number

Maintain Material code number

Maintain purchasing organization

Maintain Plant

Select the radio button Standard

Click


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Click here to continue...Maintain the following fields according to the business needs

Field name Field descriptionNumber of days after which a reminder is to besent to the vendor for supply.Material number used by vendor.Material group to which the vendor belongs to.Used for volume and point based rebates.
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Click

Maintain planned delivery time

Maintain purchasing group

Maintain standard quantityMaintain net price

Click


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Click


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Note: - Text maintained in purchase order text will be copied into the PO.

Click


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Condition type specific to this vendor and material can be maintained here. It will be copied into thepurchase order

Click


MM Cookbook - Maintain Source list

By Subhajeet Behera

Definition:-

Source list is used to find the vendor automatically during auto vendor assignment process. It is a plantspecific master data.

Through configuration, it can be made as mandatory or an optional.

Source list controls

Validity period for each vendor


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Indicates vendor as preferred vendor Blocking vendor from raising PO Source relevancy to MRP Supplying plant incase of STO

Menu Path:-

Logistics Materials Management Purchasing Master Data Source List ME01 Maintain

Double Click ME01

Maintain Material code number

Maintain Plant

Click

Maintain valid from date

Maintain Valid to date


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Maintain vendor code

Maintain Purchase organization

Note: - field is used incase of STO. Supplying plant can be mentioned here.

Tick the check box to indicate the vendor as preferred vendor.

Note: - Only one vendor can be indicated as preferred vendor in the same validity period.

Check box is used to block the vendor

If this source is to be used by MRP, fill the column.Following are the allowed entries

Click

MM Cookbook - Create Purchase Request

By Subhajeet Behera

Definition:-

Purchase request is the requirement document created manually or through the MRP run. Purchaserequest is further processed to create Purchase order document.

It is possible to create Request for Quotation purpose.

Let us create Purchase Request for a material.

Menu Path:-

Logistics Materials Management Purchasing Purchase Requisition ME51N Create


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Double Click ME51N

Click to close enjoySAP portion of the screen

Click to open the window

Maintain the details at item level as shown below


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Click

To view more details, click the item details tab screen one by one.

Click

Change or maintain the details as required by the business.

Click


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Click

Click

Click

click


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Note: - Maintain the required text here

Click

Click


MM Cookbook - Create Purchase Order

By Subhajeet Behera

Definition:-

Purchase order is an agreement between the vendor and a company to supply the goods at an agreedrate and at an agreed duration of interval.

Purchase order is a legal document between a vendor and a company. It covers the payment terms andterms of delivery also.

Menu Path:-

Logistics Materials Management Purchasing Purchase Order Create ME21N

Vendor/Supplying Plant known


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Double Click ME21N

Entervendor number. E.g. IND6-1

Click

Enter Purchase organization, purchasing group and company code details as shown below


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Click

Click to view the item over view

Enter Material, PO quantity and Plant where it is to be received as shown below.

Clickthe tab screens one by one in the item detail screen. Maintain the appropriate entries.

Click


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Click

Click

Click

Click

Click here to continue...
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Note: - If material master is set with the QM inspection type 01, then stock type will be QM stock. QAcontrol key from the material master will be copied here into the PO.Click

Ensure check box is ticked to have GR based Invoice.

Enter the tax code.

Click

Click

Click


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Click to scroll down the screen

Click

Click to maintain Payment terms

Note: - To send the message at the time of GR to the person who created the PO, click the check

box

Click


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Click

Note: - Text can be maintained here.

Click

Click

Message will appear at the bottomMM Cookbook - Goods Receipt against POBy Subhajeet Behera

Definition:-

There are three types of main material movements in SAP. They are Goods Receipt Good Issue Transfer Posting

Through MIGO transaction entire above three types of transactions can be performed. There are manyoptions with MIGO transaction code.

Goods receipt is the process of receiving materials in to the storage location.

Example receiving goods with reference to PO, customer returns, from production. When goods arereceived, inventory will be increased and relevant other documents will be adjusted.


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During the material movement, material document is generated for all movements. Relevant accountingand controlling documents are also created for relevant movement types.

Menu Path:-

Logistics Materials Management Inventory management Goods Movement MIGO Goods

Movement (MIGO)

Double Click MIGO

Maintain the entries as explained below


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Ensure Goods receipt is selected in the left top box above the header details .

To look at the other possible entries click . Other possible entries are

Ensure is selected to make GR with reference to purchase order.

Other possible entries are


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Above two fields indicate the Process and reference document. I.e. Goods Receipt with reference toPurchase Order.

Enter the purchase order number and serial number as shown below.

Note: - PO can be selected from the left side display. Left side display will show the past purchase ordersused. To select from left side display, double click on the required PO.

Click

Note: - as soon as pressing the key display of purchase order in the above box where we mentionedthe PO will disappear.

Maintain the delivery note details


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Clickthe tab screens one by one in the detail data area

Click

Click

Maintain the received quantity

Click to maintain the storage location where it is to be received


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Note:- If the material is batch managed, batch number has to be entered.

Click

Click

Click at the bottom

Click at the top to verify the data correctness

Message will appear at the bottom.


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Note: -If any warning or information message appeared, click to proceed.

Click

Message appear at the bottom.

Note:-

If the item is batch managed and the items under one delivery note with different batches are received,

quantity can be split into according to the batch size by pressing

Screen will appear as below


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If the item is batch managed, batch column will also appear.

Click after completing the entry.MM Cookbook - Create Contract

By Subhajeet Behera

Contract is an agreement between the vendor and the company to supply goods and services as per theagreed terms and condition.

At the time of negotiating, it may not be clear as of how much is required and when it is required. In sucha situation, an open contract can be released on the vendor.

Every contract must be followed by a release order which is nothing but a normal PO with reference tothe contract.

Contracts can be release centrally or with specific to plant. In case of multiple plants, central contract canbe released and release order specific to each plants can be released.


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Menu Path:-Logistics Materials Management Purchasing Outline Agreement Contract ME31K Create

Double Click ME31K


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Enter vendor number. E.g. IND6-1

Enter document type. Possible entries are

e.g select MK.

Click

Enter Purchase organization, purchasing group and storage location.


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Click

Maintain the entries as shown below.

Click

Enter material code and target quantity. E.g. STJRM001 and 10000 respectively


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Select the item

Click to maintain the pricing conditions

Note:-Condition which are already maintained in the info record only appear here. If required add discountcondition type manually.

Double click on item serial number to enter item detail tax


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Click

Message will appear at the bottomMM Cookbook - Create Scheduling Agreement

By Subhajeet Behera

Definition:-

Purchase order is an agreement between the vendor and a company to supply the goods at an agreedrate and at an agreed duration of interval.

Purchase order is a legal document between a vendor and a company. It covers the payment terms andterms of delivery also.

Scheduling agreement is one of the purchase order types. It defines the agreement between vendor andthe company similar to the PO. For every scheduling agreement, delivery schedule is a must to indicatethe supply schedule.

If scheduling agreement exist, MRP can automatically create the delivery schedule.

Let us create the scheduling agreement with vendor IND6-1 for material STJRM001.

Menu Path:-


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Logistics Materials Management Purchasing Outline Agreement SchedulingAgreement Create ME31L Vendor Known

Double Click ME31L

Maintain the entries as shown below


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Click

Maintain the entries as shown below.


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Click to maintain the item details

Maintain the entries as shown below

Click

Select the row by clicking the grey box in the left


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Click to check the conditions

Note: - Scheduling agreement is used where the rate is fixed over the period of time without anychanges.

Click

Message would appear at the bottom

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