Materials Management MM300 - Intro to MM

1.1 Introduction to MM - Overview 1.2

Instructor Guide Chapter 1 - General

MM Overview Provides comprehensive solution for MM Supports other logistic functions: PM, PS and modules which require materials information Fully integrated with other modules

1.3 MM Sub-Modules Materials Requirement Planning - existing warehouse stock and historical consumption data - monitor stocks and automatically creation of proposals for purchasing and production Purchasing - external procurement of material and services - determination of possible sources to cover requirement - monitoring of GR and payment - integration with CO, FI, SD (through MRP) IM - manage stocks on quantity and value - physical inventory - overview of current stock - different stock buckets: stock ordered, stock in QI LIV - invoices are compared with PO and GR: content, prices, quantity - invoices without PO allowed - integration to FI, CO, AA Valuation - application areas: Purchasing, IM, LIV - integration with FI 1.4 How does SAP view MM? 1.5 1.6 The Integrated Supply Chain Product flows from supplier to customer Demand flows from customer to supplier Financial Control an HR provides support Information flows in all directions MM, SD, PP, FI, CO, HR Procurement Cycle Requirements External procurement or internal production GR into inventory GI to customer then integration with SD LIV for external PO, set up liability to vendor GR, GI, LIV affect internal (CO) and external (FI) accounting

1.7 Review

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Materials Management MM300 - Intro to MM

On-Line Demonstration: 1. Materials Management Menu Paths Purpose:

Instructor Guide Chapter 1 - General

Give the students an overview of the breakdown of the MM menu paths Logistics Materials Management Point out the different areas in MM as they relate to slide 1.3 Purchasing Inventory Management Logistics Invoice Verification Physical Inventory Valuation Materials Requirement Planning (MRP) Service Entry Sheet Service Master Foreign Trade/Customs Material Master Product Catalog

2.1 SAP Hierarchy Structure Hierarchy areas: financial, materials management, sales & distribution Areas are different, owned by different groups, areas are integrated Some decisions involve all parties, some will not impact others 2.2 Benefits of the SAP Organizational Structure Ability to add Org Units Separation of data into logistical and financial views 2.3 2.4 3.1 3.2 Key Terms Three areas: FI, MM, SD Client Company Code Purch Org Purch Group Purch Area (New in 4.6 Part of IS-R used for Reporting and Information System) Key Terms Plant Sales Organization Sales Office Sales Group Sales Area Introduction Overview Organizational Structures in R/3

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Materials Management MM300 - Intro to MM

Instructor Guide Chapter 1 - General

Portray a companys complex organizational structure Different org units linked to one another and used to define master data Material and vendor data can be maintained for each different data level Documents are created for an organization unit, i.e., Purchase Order for one Purchasing Organization, Sales Order for one Sales Organization. Before creation of master and transaction data, you need to understand hierarchy

3.3 Entity Relationship Diagram Hierarchy areas

3.4 MM Organization Units Plant - subdivision of company - no financial key - manufacturing location, distribution center, warehouse - plant number must be unique within client - Inventory Management is done on plant or plant/SL level - Inventory is generally valued at plant level Purchasing Organization - procures material and services for one or more plants - maybe setup for one or multi-company procurement - negotiates on prices and conditions with vendor - can be subdivided into purchasing groups Storage Location - Subdivision of Plant - Defines location for materials - Warehouse, bin, tank, storage area - Physical inventory and material movement 3.5 Accounting Client: highest org level: holding company, technical unit, COA Company Code CC: Legal unit for external reporting: balance sheet and P&L Business Area: Internal balance sheet and P&L for one CC or across CC 3.6 IM without WM MM main function: Movement of materials, thus need for plants and storage locations Plant: production site or storage areas, MRP One or multiple plants are assigned to company code If material stored in one physical location belongs to two different company codes, then define two plants (valuation purposes) If two physical buildings close to one another contain material from same company code, then set up one plant only (logical plant) Plant can be broken down into storage Locations = lowest level without WM

3.7 IM with WM All warehouse managed stocks are managed under the same storage location Only one storage location per plant can be allocated to a warehouse number Storage locations assigned to different plants can be allocated to one warehouse

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Materials Management MM300 - Intro to MM

Instructor Guide Chapter 1 - General

Warehouse number / Storage Types / Storage Bins (coordinates to designate aisle, row, and shelf). Bin is lowest level.

3.8 Valuation Area Not part of structure, switched on at client level Valuation of inventory Either on company code or plant level (usually and recommended / must if using Production Planning module) Company code level: material has same value in all plants Plant level: material can have different value in each plant Example: different production costs in different plants Once set and transactions have been carried out, no change is possible 3.9 Purchasing Organization Structure Assigned and not assigned to CC (Central Purchasing Org) 3.10 Purchasing Organizations Assigned to Company Codes Two company codes and each one has very different purchasing habits (beer and entertainment park) Unable to benefit from each others terms and conditions 3.11 Central Purchasing Organization Never assigned to a company code Terms and conditions are negotiated on a higher level = advantage of centrally agreed contracts Ability to define assigned and central purchasing organization in one structure Example: corporate purchases (office supplies, computers) vs. purchases for the companys products 3.12 Relationship between SD and MM Sales Org is always assigned to a company code Sales Area contains Sales Organization, Distribution Channel and Division 3.13 Configuration of the Organizational Levels in MM First define then assign to each other Once valuation level is specified and transactions have been carried out you cant change it 3.14 Factory Calendar A plant must have a factory calendar Steps - Define all public holidays - Maintain the holiday calendar for a country (select which public holidays are relevant to your country/region, specify validity periods) - Maintain factory calendar for a country/region (specify workdays, which holiday calendar, and validity periods) - Assign factory calendar to plant

4.1 Customizing Projects Structuring implementation projects, status, documentation Language, resources (employees), documentation assignment
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Materials Management MM300 - Intro to MM

4.2 Integration with Microsoft Project

Instructor Guide Chapter 1 - General

Customizing Structured plan for implementation and enhancement of R/3 Tools for system settings and documentation Administrative tools Configuration recommendations Transfer of system configuration from development to production environment Tools for system and release upgrades IMG transactions show a logical view of data from different database tables, physical structure is hidden but can be seen in the data dictionary

4.3 Structure of the IMG The configuration area is divided into: - general, non application dependent specifications (general settings) - defining organizational units and their relationships (corporate structure) - specifications for the individual applications (MM, PP, SD, FI, HR) 4.4 Four System Approach Correction and Transport System moves configuration and development changes from system to system Example: One system for programming, one for configuration, one for testing and training, one for life system 4.5 4.6 Creating a Change Request Configuration, development and modifications are assigned to a change request Number Assignment Master records and documents are managed in the system under one unique number Internal and external number assignment Internal numbering assigned by the system External assignment is done by the user SAP recommend internal number assignment Example: A logical number system is not required because you can use search helps and classification system to find your data records

4.7 Search Help Comparison Key to find data

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