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SAP MM

SAP - System Applications and Products in data processing


ERP -- Enterprise Resource Planning
Resources - Men, machines, material and money etc
in any organization ERP packages we will utilize in systemetic way to get the
profits
What is SAP R/3
SAP means - System applications products in data processing
It is a German Made
it is a real time 3 tier client-server architecture. These are data base layer,
application layer and presentation layer
Why SAP Advantages
integration is very strong b/w different modules
client-server architecture is very strong.
it is more reliable
it supports any operating systems ie, windows/linux/unix etc
it supports any database suchas Oracle/SQL/RDBMS etc
it supports many country language ie english, german, spanish almost 24
languages
it is having strong programming language ie, ABAP programming language
MM Business Process
Proucurement of material for stock purposes
proucurement of material for direct consumption purposes
Asset/capital goods procurement
Pipeline material procurement
Consignment material procurement
Sub-contracting procurement
Import Procurement
Third-party Procurement
Outline agreements are:
Contract Agreements and Scheduling agreements
stock transfer Orders:
Intra company stock transfer order and
inter company stock transfer order
External service procurement
Returnable transport packing handling material RTP
Non-stock material procurement
Non-valuated material procurement
Blanket Purchasing
Rebeat Agreement

Classic Implementation Landscape


Development System - Development client
Quality Assurance system - Quality client
Production system -- Production client

Enterprise Structure
Client:
commercially or technically it is also an organizational unit or level.
at this level it contains a set of tables, master records etc
it is top organizational level in SAP and it is 3 digit numeric number.
following are already existing clients are: 000, 011 - master client, 066 - early
watch client, 800 - IDEAS - International Demonstration education systems)
but in realtime we don't work any of the clients, basis consultants create new
clients for ex: 100, 120, 200, 300, etc.
we will work in that clients only.
How many servers
Development server: golden client 100, test client 110, sandbox client 120
quality server : quality client 200, training client 210
production server: production client 300
company code:
it is separate accounting department or legal entity
at this level accounts are maintained by finance people to maintain business
in G/L accounts
business balance sheet, profit and loss statement etc will be carried out at
company code level only.
it is an internal accounting dept, in an external accounting dept.
purchasing organization:
it is responsible to procure material/service by negotiating terms and
conditions from an external vendor or from internal plant only.
types of purchasing organizatin:
1. plant specific purchasing organization/local plant purchasing organization
2. cross plant p.org
3. cross company code p.organization
4. central purchasing organization at company code level
5. standard purchasing organization
6. Reference p.organizatin
central purchasing organization:
if material is requireed for multiple plants then central p.organization will be
involved and advantage is better prices are possible
central purchasing organizations assign to company code level only
Plant:
it is a manufacturing unit or an operational unit or a sales brach unit
storage location:

keeping stock of material in a location or a place is known as storage location


only for storage location repeatative code is possible but in different plant
only
MM organizationl levels
purchasing organization top level in MM, Plant and storage location level least
level in MM
customization of new system in sap log on
Goto SAP log on -- click on new button
Input SAP server home -- development server description
Input application server -- 192.168.1.17
Input instance no -- 06
Input system ID -- ECC
click on next -- next -- finish
now double click on sap log on
select your system
input client say 800
Input user -- sap user
password -- then enter
customization of enterprise structure
define company: OX15
path: spro -- sap ref img -- enterprise structure -- definition -- financial
accounting -- define company
click on new entries F5
input company name: GVK POW
input 2nd name: GVK power group of industries
detailed information
Input street PO BOX postal code etc
input country IN language EN currency INR etc
next click on save button
a pop up screen appears customizing request
click on create request buttion F8
a request generted ECq0008
input short desciption: SAP MM SD WM asha
owner: sap user the user id
click enter and click on save button
edit, copy delete, check company code: OX02
path: spro -- sap ref img -- enterprise structure -- definition -- financial
accounting -- edit copy delete check compandy code
tcode EC01 is to be used
double click copy delete check company code
now click on copy organizational object -- from company code 1000 to

company code GVKI new company code


click enter -- do you want to copy the g/l accounting data -- in real time we
should select no
do you want to allocate a different local currency to target company code -yes
currency INR -- click enter several times..progress is running. Now save
now come to back and choose activity
click edit company code data -- here select your company code say GVKI and
click on address button or shift F5
in address screen, we can input company code, name, address and
communication details
input title company company name GVK power etc
input search term GVK
input street, and details and save
again select the same company code say GVKI and click on detailed button
and input company name, city and country and save
Define valuation level: tcode OX14
recommend option: valuation area is plant
if valuation area is plant then material values are unique at plant level only
that means material prices may vary from plant to plant
if production planning module is there then valuation area must be at plant
level.
if valuation level is company code then material prices are unique at
company code level that means material prices is same in all the plants
under one company code but it may differ
at other company code level.
in the middle of business it is very difficult to change valuation area from
plant level to company code or company code level to plant level becuause
for any
material existing stock should not be tere for any material no open PO,
production order and sales order should exist.
for service company code level is better
define plant OX10
path: spro -- sap ref img -- enterprise structure -- definition -- logistics general
-- define copy delete check plant
click on define copy delete check plant
now click on copy organizational object -- from plant 1000 to plant GRP1 new
plant
then click on enter several times with yes -- then save
a newly established plant GRP1 has been created
now come to back -- choose activity
here click on edit company code data -- select our plant say GRP1 and click
on address screen or shift F5
in address screen, input plant name, address and communication detailes
input title, company name and input search terms etc and then save

now again select plant GRP1 and click on detailed button


here you manitan the 1st name say rajmundry plant
factory calander 01 -- SCAL tcode is used to create a factory calander
maintain storage location OX09
path: spro -- sap ref img -- enterprise structure -- definition -- material
management -- maintain storage location
input plant GRP1 -- now enter
due to copy function if storage locations are copied from existing plant to our
new plant then click select all button and delete then save
now click on new entries and create 0001 raw material, 0002 eng material
0003 spare parts 0004 finished goods etc
if any storage location address is different from plant address then select that
storage location say 0001 and click address of storage location
click on new entries -- in address screen enter name and and communication
details of the storage location and save
maintain purchaing organization OX08
path: spro -- sap ref img -- enterprise structure -- definition -- material
management -- maintain purchasing organization
click on new entries and create
P1P2 cross plant purchasing organization
P1P0 rajmundry unit 1 p.organization
Assignment
assign company code to company OX16
path: spro -- sap ref img -- enterprise structures -- assignment -- financial
accounting -- assign company code to company
input cocode GVKI city Hyd company GVK POW
save
assign plant to company code OX18
path: spro -- sap ref img -- enterprise structure -- assignment -- logistics
general -- assign plant to company code
tcode OX18
new entry -- cocode GVKI -- GRP1 GRP2
note: one plat is assign to only one company code but one compnay code can
have multiple plants
save
assign purchasing organization to company code OX01
path: spro -- sap ref img -- enterprise structure -- assignment -- material
management -- assign purchasing organization to company code
enter -- p.org GVCP cocode GVK1 and save
note: one purchasing organization can assign to only one company code but
one company code can have multiple central purchasing organziations

assing purchasing organization to plant OX17


path: spro -- sap ref img -- enterprise structure -- assignment -- material
management -- assign purchasing organization to plant
enter -- goto new entries -- p.org GVCP plant GRP1
save
assign standard purchasing organization to plant OMKI
path: spro -- sap ref img -- enterprise structure -- assignment -- material
management -- assign standard purchasing organziation to plant
note: if plant is having more than one p.org, assign any one purchasing
organization as a standard p.organization to the plant
this may be procured for consignment, pipeline, subcontracting etc.
plant GRP1 St.p.org X plant rajmundry plant
save
assign p.org to ref.p.organization OMKJ
it will be discussed in centrally agreed contracts
enterprise structue tables
T001 -- company code data
T001W -- plant data
T001L -- storage location data
T024 -- purchasing groups
T024W -- valid purchasing organizations per plant

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