apunte sap materials management questionarie mm.pdf
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MM QuestionaireTRANSCRIPT
Materials Management Questionnaire
© 1997 SAP Technology Inc. 1
Materials Management Questionnaire
Instructions This questionnaire is a tool that you can use to collect information about your business that will be usef5l for tailoring
the R/3 System to your business needs. You will need Microsoft Word for Windows to work with this document.
Enter your answers in the fields after the questions, using the TAB key to move from field to field. You may save and
later change your answers in this questionnaire just as you would with any other Word document.
1 Global Settings
1.1 Currencies
Does your company use foreign currencies in
business documents? (e.g. buying products or
entering an invoice in foreign currency.)
Yes No
Does your company need foreign currency
balance sheet accounts?
Yes No
Roughly how many different foreign currencies
do you use?
List the foreign currencies for which you will
maintain exchange rates in the system:
It may be more convenient to enter exchange rates in a currency other than your local currency.
Example: Your local currency is Canadian dollars, but you want to enter USD exchange rates such as
DEM/USD, JPY/USD, and USD/CAD.
In which currency do you want to enter
exchange rates?
Local
currency
Other currency:
1.2 Units of Measure1
Do you use various different units of measure to
manage materials in your organization? (e.g.
each, pieces, kilos, pounds, gallons, boxes,…)
Yes No
List the units of measure you use:
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© 1997 SAP Technology Inc. 2
1.2.1 If you use various units of measure …
Conversion factors for common units of weight, length, area and volume are standard in R/3a. (e.g. you may
post the receipt of 1 kilo of a material managed in grams, and R/3 will convert into 1000 grams).
Do you want to maintain “company specific”
conversion factors between unit of measure2?
Example: You purchase some products in
cartons of 12, other products in
cartons of 1000. When entering
goods receipts for these products,
you would like to enter the number
of cartons, and have R/3 convert
automatically into base units of
measure.
No Yes, we need these
“company specific”
conversion factors:
1.3 Calendar
Do some parts of your organization – branches,
departments, warehouses, production facilities,
etc. – observe different public holidays than the
rest of your organization (e.g., in one
production facility, the day after Thanksgiving is
a working day, although everywhere else it is a
holiday)?
No, the entire
organization
observes the same
holidays
Yes, we need
different “holiday
calendars” because:
Are the days of the week that are working days
different in some parts of your organization?
(e.g. one production facility operates seven days
a week; all the others operate Monday through
Friday)?
No, the entire
organization has
the same working
days
Yes, we need
different “factory
calendars” because:
2 Enterprise Structure
2.1 Material Valuation Areas
Is the value of a material the same throughout
the company, or can the value of the same
material be different in different plants (e.g. the
book value of a widget in factory A is $1; in
factory B its value is $0.97)?
The same materials may have a different
value in different parts of the company.
Materials will always have the same value
throughout the company.
We will never use product costing in R/3.
We will never use production planning in
R/3.
a Starting with 3.1G. Available now in the Simplification Group’s Pre-Configured Client.
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© 1997 SAP Technology Inc. 3
2.2 Plants
The plant is the fundamental organizational entity in R/3 at which materials are managed. In practice, R/3
plants are often used to represent a production facility, a warehouse, or an operating site. Some reasons why
plants are important in R/3:
The quantity of inventory is tracked per planta. (e.g. you may have 10 widgets in plant A and 7
widgets in plant B).
The value of inventory may be tracked per plant, and the accounts posted to record
transactions involving inventory may be different in each plant (e.g. each widget has a book
value of $1 in plant A, and $1.07 in plant B).
Each plant has its own data for a material concerning areas such as purchasing, sales, and
production.
Each plant has its own material requirements planning.
List the different R/3 plants you will need, and
describe briefly why each should be a different
plant
2.3 Storage Locations
Each R/3 plant may have several “storage locations” in which the quantities of stocks are tracked (e.g. there
are 10 widgets in plant A, 7 in storage location 1, 3 in storage location 2, and non in storage location 3).
List the storage locations each of your plants
will need:
2.4 Purchasing Organizations
List the purchasing departments in your
organization:
Are these departments responsible for all
procurement?
These departments
handle all purchases.
Some purchasing is not
handled by these
departments.
Description:
2.4.1 Unless one department handles all purchasing…
Which of these departments negotiate pricing
terms and conditions with your suppliers?
Do they do this independently of each other?
What information do these departments share?
a Within a plant, distinct quantities of the same material may tracked in several different “storage location”.
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How do the departments share the task of
procuring the goods and services required by
your organization (e.g. each production facility
responsible for its own procurement,
responsibility split by geographical area,
segregated by the type of item – manufacturing
raw materials versus other items,…)?
3 Master Data
3.1 Material Types
Which types of materials do you need in your organization:
Finished goods: materials, possibly spare parts / components, which you make and
sell.
Semi-finished goods: materials you have made which you will later use to make
something else with.
Raw materials: materials you buy which you will use to make something else with.
Packaging materials: raw materials used only for packaging. If you need this material
type, explain why you wish to distinguish packaging materials from other raw
materials:
Trading goods: items you buy to later sell without any manufacturing value added.
Non-stocked materials: items which you buy, but do not track in inventory. These
materials are charged to the appropriate expense account when purchased, and are not
received into stock. They may be delivered to the point of consumption directly.
Non-valuated materials: items you buy, and track only the quantity, but not the value
in inventory. These materials are charged to the appropriate expense account when
purchased. Once received into stock, inventory transactions (e.g. goods issue 2 pieces)
have no impact on accounting.
Service material: TBC obsolete in MM, replaced by service master and MM SRV
external service management program. May still be needed for SD to price services
rendered to customers.
3.2 Material Groups
In R/3 each material must belong to exactly one material group. Groups are a rough way to classify
materials. Among other things, material groups:
Limit the scope of standard reports and analyses
Can be used as search criteria
Can restrict user access to exclude specific groups
Please list the different material groups you will
want to use:
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3.3 Classification3
Do you want to use a classification system for
the materials in your organization? A
classification system can be used to find
materials with similar characteristics.
No Yes
If yes, describe briefly how you intend to
classify materials:
3.4 Material Numbersa
When creating new materials, do you want R/3
to automatically assign numbers sequentially to
new materials, or will the end user enter the
material number?
R/3 always assigns
new numbers
The user will always
provide the number
when creating new
materials
Sometimes R/3 assigns
new numbers,
sometimes the user
enters new numbers.
If material numbers may be assigned by the end
user, describe the format:
Do you need multiple material numbers for the
same material (e.g. engineering number,
catalogue number for sales, universal product
codes, …)?
No Yes. Explain:
3.5 Universal Product Codes (UPC)
Do you or any of your suppliers use Universal
Product Codes (also known as EANs) to
identify your goods?
No Yes
Do you need to look up purchase orders based
on UPCs when receiving materials from your
suppliers?
No Yes
If you use UPCs for your products, please
describe how you derive these numbers:
3.6 Batch Management4
Is there any need to batch-manage your
materials (sub-divide the quantity of your
material into batches and track the batches
individually).
No Yes, because:
a Also see question “Material Master Data Transfer from Legacy System”
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3.6.1 If You Need Batch Management…
Can the value of the same material be different
in different batches (e.g. The book value of each
widgets in batch 1 is $1, but widgets in batch 2
are valued at $1.05)5.
No Yes
At which level must batch numbers be unique? the batch number
alone uniquely
identifies a batch of a
material.
the batch number and
the material number
uniquely identifies a
batch of a material
the batch number, the
material number and
the plant number
uniquely identifies a
batch of a material
Will you need to mark certain batches of a
material to prevent or restrict them from being
withdrawn from stock?
No
Yes, prevent marked batches from being issued
from stock.
Yes, allow marked batches to be issued from stock,
but only after warning the user.
Describe any additional information you must
keep with a batch (e.g. expiry date, quality
related or grade information,…). Indicate if
different information may be required depending
on what is being batch managed:
When making a withdrawal from stock, how do
you select which batch to use? Describe the
method(s) you use:
3.7 Material Master Data Transfer from Legacy System
Do you want to transfer material master data
from a legacy system?
No Yes
During data transfer from your legacy system,
must you retain existing material numbering?
No Yes
If yes, describe the material number format:
3.8 Material Statuses
Do you want to restrict how a material may be
used within the system on a per material basis?6
Example: Prevent material XYZ from being
used in purchase orders, and issue a
No Yes
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warning when it is used in an inventory
management transaction.
3.9 Engineering Change Management7
Do you need to control changes to data in your
material master record using SAP’s Engineering
Change Management?
Example: A change is requested, approved,
executed, becomes effective on a
specified date, and finally completed.
No Yes
3.10 Vendors / Suppliers
3.10.1 Vendor Roles8
For the same purchasing transaction, must you
deal with different parties for different roles?
Example: You order goods from vendor A who
then supplies the goods and presents
you with an invoice. However,
payment must be made to a different
party, vendor A’s headquarters.
No Yes
If yes, indicate the possible different roles. Order from
Goods
supplier
Invoice
presented by
Remit payment to
Any others? Explain:
3.10.2 Vendor Numbers9
When creating new vendors in the system, do
you want R/3 to automatically assign numbers
sequentially to new vendors, or will the end user
enter the vendor number?
R/3 always assigns new numbers
The user will always provide the number
when creating new vendors
Sometimes R/3 assigns new numbers,
sometimes the user enters new numbers
If vendor numbers may be assigned by the end
user, describe the format:
3.10.3 Types of Vendor Accounts
Do you foresee the need for different types of
vendor accounts?
No Yes
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If yes, explain
3.10.4 Vendor Specific Standard Texts for Purchasing Documents10
Are there any instructions / information that you
would like to include in purchasing documents
for certain vendors but not others?
3.10.5 Payment Terms11 and Incoterms
Do your vendors offer discounts for prompt
payment (e.g. 1% cash discount within 10 days;
30 days due net)?
No Yes
Are Incoterms specified in your purchasing
documents (e.g. FOB Singapore, CIF San
Francisco,…)?
No Yes
3.10.6 Vendor Evaluation
Skip this section if you do not perform vendor evaluations.
Which of the following criteria do you use to
compute scores for vendor evaluation?
Price
Quality (need SAP’s
QM module)
On time deliveries
Quantity reliability
Compliance with
shipping instructions
other
4 Purchasing
4.1 Buyers12
A purchasing group is a person or group of
people responsible for creating and subsequently
monitoring the progress of a purchasing
documenta.
Purchasing groups are to represent
individual buyers.
Purchasing groups are to represent a groups
of buyers.
List the some of the purchasing groups you will
need, indicate how complete the list is, and who
should maintain it:
4.2 Define Shipping Instructions13
Do you include item specific shipping or
packing instructions in the purchasing
documents you issue to your suppliers (e.g.
No Yes
aYou can limit a user’s access to purchasing documents belonging to his purchasing group.
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heavy duty corrugated cardboard packaging)?
If yes, list the instructions:
Do you want to record how well vendors
comply with the instructions when you receive
the goods (e.g. full compliance, ignored
instructions, …)a?
No Yes
If yes, list the criteria for each shipping
instruction:
4.3 Deadline Monitoring14
Do you want to send reminders to inform your
vendor of an impending delivery?
No
Yes, reminders are sent days before
the agreed delivery date.
Do you want to send reminders to notify your
vendors of overdue deliveries?
No
Yes, reminders are sent when an order is
overdue days.
Should deadline monitoring be different for
different materials?
No, same deadline monitoring for all
materials.
Yes (explain):
4.4 Under / Over Delivery Tolerance15
4.4.1 Over Deliveries
Do you normally accept over deliveries from
your vendors? An over delivery is when the
quantity delivered is more than the (open) order
quantity in purchasing document.
No Yes
If yes, you would normally (by default) tolerate
over deliveries of up to what percentageb?
Should this default tolerance be different for
different materials?
No, same
default
tolerance for
all materials.
Yes (explain):
a Useful for vendor evaluations. b Unless the purchasing document is changed, goods receipts will not be possible for a quantity that exceeds this tolerance limit.
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4.4.2 Under Deliveries16
When the quantity a vendor delivers is less than the (open) order quantity in a purchasing document, this can
be interpreted either as a “partial delivery”, with more deliveries expected later or as an “under delivery”,
with no further deliveries expected. When the shortfall is considered an “under delivery,” after receiving the
goods, the system would behave as though the order item’s open quantity were zero.
Would you ever want the second interpretation
– “under delivery” as opposed to “partial
delivery” – in the case of minor shortfalls in
quantity delivered?
No Yes
If yes, what threshold would you use to
distinguish between the two cases?
A shortfall of up to percent should
normally (by default) be considered an under
delivery; any shortfall greater than this
should be considered a partial delivery.
Should this default threshold be different for
different materials?
No, same
default
threshold for
all materials
Yes, explain:
4.5 Certificates of Origin / Customs Tariff References17
Do you need to track certificates of origin and /
or customs tariff reference numbers for items
you purchase that are produced in foreign
countries?
No Yes
4.6 Source Determination18
Do you want to manage a list of approved
suppliers for your materials? This means that if a
material is subject to a “source list”
requirement, you can only buy the material from
suppliers on the list.
Yes, for all materials.
Yes, for all materials, but only in these
plants:
For specific materials only (specify):
No.
Do some of your materials have a fixed vendor
from whom you must always purchase that
material.
in a given plant?
across the entire
company?
everywhere except in
certain plants?
Are some of your suppliers specific to a
geographic region?
Example: ACME Widgets supplies plants in the
western region; ABC Widgets
supplies plants in the eastern region.
A western region plant should not
Do not need this feature.
Want this feature, warning only if vendor
does not cover the plant’s region.
Want this feature, prevent orders from
vendors that do not cover a plant’s region.
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order widgets from an eastern region
supplier.
If you want to use this feature, indicate the
region to which each of your plants belongs:
4.7 Quota Arrangement
Do you apportion the purchase volume of
certain materials among several vendors?
No Yes
4.8 Types of Purchasing
Documents
Indicate which purchasing documents you plan to use in the sections which follow.
4.8.1 Requests for Quotation / Quotations
These documents are used to solicit a vendor’s prices and conditions for goods and services you
need to purchase.
Do you invite several vendors to quote prices,
terms and conditions in a tender / bid / request
for quotation process?
No Yes
4.8.2 Purchase Requisitions
Purchase Requisition
Outline Agreement Request (a requisition for a contract or scheduling agreement)
4.8.2.1 Purchase Requisition Processing Time19
How many days does it take, typically, before a
purchase requisition becomes demand in a
purchasing document given to a suppliera?
Example: In plant A, within two days the
purchasing department will
convert a requisition for 10
widgets into a purchase order
issued to a supplier.
Processing times per plant:
4.8.3 Purchase Orders
Purchase Order
a This would be used by the system to calculate replenishment lead times.
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4.8.4 Contracts (a.k.a. blanket orders)
Quantity Contract
Value Contract
4.8.5 Scheduling Agreements
Scheduling Agreement
A purchasing document containing a list of hard and soft deliveries.
4.8.6 Stock Transport Orders
If you have several “plants”, do you want to use
purchasing documents to plan and manage
movements of goods between plants
(functionality similar to purchasing documents,
but without invoicing)?
No Yes
If yes, which documents do you plan to use? Stock Transport Order (similar to a
purchase order)
Transport Scheduling Agreement (similar
to scheduling agreement).
4.9 Approval of Purchasing Documents
Indicate which purchasing documents should be subject to approval by someone (or possibly several people)
before the documents may be issued to vendors.
Describe the approval process and under what
circumstances the approval process applies.
Example: all requisitions for over $1000
must be approved by the
purchasing department manager,
all requisitions for over $10000
must be approved by the
department manager and the chief
financial officer.
Requests for Quotations / Quotations (RFQs)
Purchase Requisitions
Purchase Orders (POs)
Contracts
Scheduling Agreements
4.10 Account Assignments in Purchasing Documents
By default, purchasing document items are purchased “for stock” and are automatically charged to stock
accounts when the goods are received.
Items may also be purchased “for consumption”, to be charged to accounts other than the automatically
determined stock account, when the goods are received. In such cases, additional accounting information
would have to be specified in the purchasing document.
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When items are purchased “for consumption”,
there are several “account assignment
categories”, or ways purchasing document items
can be charged. Which will you use?
Asset account
Cost center
Production order
Project
Sales order
Other – please
specify
If you do not want all the account assignment
categories you have selected to be available in
all the purchasing documents you will use,
indicate which account assignment categories
you want per purchasing document type:
4.10.1 Authorization Check for G/L Accounts20
Do you want to prevent users from charging
purchasing document items to accounts which
they are not authorized to post?
No Yes
If yes, in which purchasing documents: Purchase Requisitions
Purchase Orders
Contracts
Scheduling Agreements
4.11 Item Categories
4.11.1 Vendor Consignment21
Do you purchase any materials from vendors on
a consignment basis?
No Yes
If yes, in which purchasing documents:
4.11.2 Subcontracting
Do you need purchasing transactions to support
subcontracting (i.e., you issue material
components to a vendor who processes them
into different materials for you)?
No Yes
If yes, in which purchasing documents:
4.11.3 Third Party or “Drop Ship”
Do you ever issue purchase orders to a vendor
with instructions that the items be supplied
directly to a customer (the ordered items are not
received by your company)?
No Yes
If yes, in which purchasing documents?
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4.11.4 Services
Do you issue purchase orders for services? No Yes
4.12 Tolerance Limits for Archiving22
How long would you like to retain in the SAP
system a purchasing document which has been
completely received and invoiced?
Wait at least days after a purchasing
document has been completed before
marking the document for archiving and
deletion.
Wait at least days after a purchasing
document has been marked before archiving
and then deleting it.
4.13 Purchase Order Price Tolerance Limits23
When processing a purchase order, do you want
the system to check whether the purchase order
price versus the material’s valuation price (book
value) in your system is within a pre-defined
tolerance limit?
No Yes
If yes, indicate: maximum percentage difference you are willing to
tolerate without a warning:
maximum dollar amount difference you are willing to
tolerate without a warning:
4.14 Order Confirmation and Shipping Notification24
Once you have issued a purchasing document to
a vendor, do you want to track “confirmations”
your vendor may return to you regarding the
order, such as:
Order acknowledgments which confirm the order
dates and quantities.
Shipping notifications, informing you that the vendor
has shipped the goods.a
Any other – describe:
Under what circumstances would you require
confirmations?
The system can help you to monitor late
confirmations. When should a confirmation be
considered late?
Acknowledgment should be received within
days of the order date.
Shipping notifications should be received at least
days before order delivery date.
a You can have goods receipts with reference to shipping notifications.
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Do you expect several different confirmation
scenarios will be needed, involving different
types of confirmations and monitoring
parameters?
No Yes.
Describe:
4.15 Purchasing Pricing and Conditions25
4.15.1 General
What pricing components do you use in your
purchasing documents?
Example: the price of the material itself,
discounts, surcharges, …
List the pricing components you need.
Also indicate if quantity based (e.g. a surcharge
of $1 per unit ordered), value based (e.g. a
discount of %10), or a dollar amount (e.g. a $10
surcharge).
You can use pricing components in purchasing documents to make provisions for incidental procurement
costs, such as freight or customs duties. These components are automatically charged to the material when
the goods are received, and can be invoiced separately.
Describe any such pricing components you will
need:
Based on all of the pricing components you
have listed in this section, are there several
distinct methods to calculate the price of a
material (think of a method as a set of allowable
pricing components)?
Example: one method, used for foreign vendors,
includes customs duties as a possible
pricing component. Another method,
for domestic vendors, does not.
4.15.2 Periodic Volume Rebates26
Do any of your vendors offer volume rebates
based on the dollar volume of business done
over a period of time?
No Yes:
4.15.3 Taxes27
Can the materials you purchase be subject to
different tax rates depending on:
the material purchased:
the plant for which the material is
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purchased:
the material’s country and/or state of origin:
other factors:
4.16 Printing / Transmission of Purchasing Documents to Vendors
4.16.1 Types of Purchasing Document to Output
What kinds of purchasing document output
(typically, printouts, but could be fax, EDI,…)
do you expect to send to your vendors?
Complete Purchasing Document
Change Notice. (When a purchasing
document which has already been outputted
and sent to a vendor is changed. You could
only output the changes instead of the entire
document.)
Reminders (sent before a due date).
Urging Letters or “Expediters” (sent after a
due date)
If you use order confirmations and / or shipping
notifications:
Urging Letter for Outstanding
Acknowledgment or Shipping Notification
If you use scheduling agreements: Rolling Delivery Schedule
Urging Letter Related to Rolling Delivery
Schedules
4.16.2 Electronic Data Interchange (EDI)
Do you plan to exchange purchasing documents
with your vendors not in paper form but
electronically with EDI?
No Yes
If yes, which messages:
What protocol:
4.17 Purchasing Data Transfer From Legacy System
4.17.1 Purchasing Documents
Would you like to transfer open purchasing
documents from your existing system into the
R/3 system?
No Yes
If yes, indicate which types of documents and Purchase requisitions: Scheduling agreements:
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give a rough estimate of the total number of line
items for each type of document.
Purchase orders:
Contracts:
other , describe:
4.17.2 Price Information
Would you like to transfer vendor / material
specific price data from your existing system?
No Yes
If yes, give a rough estimate of the number of
different vendor / material prices to be
transferred:
5 Inventory Management
In this section, indicate which types of inventory transactions you will use.
5.1 Types of Inventory Transactions / Goods Movements
5.1.1 Receipts
Goods receipt from vendor with reference to purchase order.
Goods receipt from production
Goods receipt from customer returns
Goods receipt into inspection, considered part of inventory
Goods receipt into inspection (not considered part of inventory yet, i.e., no accounting
postings)
Goods receipt from subcontracting vendor with reference to subcontracting order (consumes
components issued to vendor)
Other, describe:
5.1.2 Issues
Goods issue to customer (Sales)
Goods issue for production
Goods issue for consumption (e.g. issue to cost center)
Returns to vendor
Goods issue to subcontracting vendor with reference to subcontracting order
Goods issue to scrap
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Goods issue for sampling
Other, describe:
5.1.3 Transfers
Transfer to different company
Transfer to different plant
Transfer to different location
Other, describe:
5.2 Printed Goods Receipt / Issue Slips28
When a goods movement takes place, do you
want to print a hard copy of the document
evidencing the movement?
No Yes. Number of
copies:
Any comments regarding the printing of goods
movement documents?
5.3 Specially Managed Stock
5.3.1 Customer Consignment
Do you need to track company owned stock
held by customers (i.e., do your customers
purchase materials from you on a consignment
basis)?
No Yes
5.3.2 Vendor Consignment
Do you need to track vendor owned stock held
by your company (i.e., do you purchase
materials from your vendors on a consignment
basis)?
No Yes
5.3.3 Returnable packaging
5.3.3.1 Vendor Owned
Do you need to track returnable packaging such
as pallets or containers that are stored on your
premises but belong to the vendor?
No Yes
5.3.3.2 Company Owned
Do you need to track company owned No Yes
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returnable packaging that may be stored at a
vendor’s premises?
5.3.4 Subcontracting
Do you need to track company owned stock
issued to subcontracting vendors?
No Yes
5.4 Manual Account Assignment29
When issuing, transferring, or receiving goods,
the system determines the accounts to post
automatically. Is there ever a need for the
person recording the transaction to override the
system and enter manually the G/L account to
be debiteda?
No Yes. Describe for
which movement
types:
5.5 Availability Check30
During goods issues or transfers, the system can run an availability check to ensure that the quantity being
issued is not needed for another purpose (e.g. reserved for a production order).
Do you want the system to check availability? No
Yes, warn user if
unavailable.
Yes, prevent user from
issuing if unavailable.
5.6 Negative Stock Quantity31
Is there a compelling reason why negative stock
quantities should be allowed in the system?b
No Yes, because
If yes, in which plants and storage locations
should negative stock quantities be allowed?
5.7 Issuing Components of a Bill of Material32
Do you need to make goods issues against a
BOM for all the BOM’s components? c
No Yes
If yes, should the system first try to issue
components from vendor consignment stock, if
any exists, before issuing from company owned
stock?
No Yes
a thus bypassing the automatic account determination, and possibly overriding the account assignment made in a purchasing
document. b Standard priced materials only; not possible for moving average priced materials. c This is distinct from issuing to a reservation or to a production order, both of which may also be issues for all components of a
BOM.
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5.8 Automatic Storage Location Creation33
Material master data for a storage location must
exist before a material may be stored in that
location. Do you want the system to
automatically create this data the first time a
movement is posted to that locationa, or do you
want to create this master data manually?
Automatic storage location creation in all
plants.
Manual storage location creation because:
Manual storage location creation in which
plants?
In these plants, for which movement types
should storage location creation remain
automaticb?
5.9 Reservations34
Reservationsc are typically created automatically to reserve material for production orders, but end users
also create reservations manually. When the system checks material availability (e.g., for MRP, during
availability checks for goods issues, for sales orders, …), reserved materials are usually considered
unavailable.
Will you need reservations? No (skip rest of this section)
Yes
Unused reservations should be deleted days
after the reservation date.
It should be impossible to obtain material against a
reservation more than days in advance of the
reservation date.
If the values for the above two parameters
should be different in different plants, explain:
When creating a reservation manually, if there is
a compelling reason why the system should not
run an availability check based on ATP logic,
please explain:
a One side effect of automatic creation: a material may be stored in any storage location at a given plant, without restriction TBC. b We suggest that storage location creation be automatic for the movement type used to enter initial balance of stock from legacy
system. c Not to be confused with material reserved for sales orders, which uses a different mechanism.
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5.10 Quality Inspection
Do you want to use the QM module to support
quality inspection of goods received into
inventory?
No Yes
5.11 Document life35
How long would you like to retain in the SAP
system documents evidencing material
movements?
Wait at least days after a material
movement document has been created before
archiving and then deleting it.
6 Physical Inventory (Stock
Take)
6.1 Physical Inventory Methods
6.1.1 Cycle counting
Do you want to use cycle counting (counting
some items more frequently than others based
on ABC analysis).
No (skip rest
of section)
Yes
In the standard system, the ABC analysis is
based on dollar amount of consumption. For
each of up to 4 categories, give counting
frequency per year and percentages.
Example: A items, ranked in the top 40% by $
amount of consumption, are to be
counted 12 times per year; B items
are ranked in the next 30%, and
counted only 2 times per year; all
other items are C items counted once
a year.
A
B
C
D
6.1.2 Sampling
Do you want to use sampling: counting only a
randomly selected portion of the items subject
to inventory and extrapolating the results to all
units?
No Yes
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6.2 Posting Tolerances
Do you want to segregate the users who post
physical inventory differences into groups
distinguished by the maximum dollar amount of
difference each may post?
No Yes
If yes, indicate for each group the maximum
dollar amount per item counted that may be
posted:
7 Inventory Valuation
7.1 Price control36
Do you value your stocks using: Standard price
Moving average price
Different valuation methods for different
material types? Please explain:
7.2 Split valuation37
At a given plant, can the same material have
more than one valuation price?
Examples: a) Different batches of the same
material have different valuation
prices
b) The same material may be made
or bought. When produced in
house, the material is valued at
standard price, but when
purchased it is valued at moving
average price.
No Yes
7.3 Account determination38
Roughly how many different G/L accounts do
you need for inventory? (e.g., One account for
raw materials, one for finished products, …)
Roughly how many different material
consumption accounts do you need?
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7.4 Balance Sheet Valuation39
Do you apply any of the following valuation
methods for year end valuation?
Lowest-value
LIFO
Valuation
FIFO Valuation
8 Invoice Verification
Describe briefly how you verify vendor invoices
for goods or services purchased:
8.1 Taxes
List the types of taxes that may be appear on a
vendor’s invoice:
List those that are so commonly used that you
would like the system to propose them as
default when entering invoices: 40
If there are several different types of taxes, do
groups of these types of taxes apply together in
different circumstances?41
8.2 Blocking Invoices for Payment
Invoices may be entered into the system but automatically blocked for payment, usually because of
discrepancies. Blocked invoices may only be released for payment in a separate process, after having been
investigated.
How much variance between quantity received
and quantity invoiced are you willing to tolerate
before blocking an invoice?42
None
Tolerate quantity variance up to
dollars.
How much variance between PO price and
invoice price are you willing to tolerate?43
None
Tolerate price variance of up to
dollars or percent, whichever is less.
Do you want to block invoices for late delivery
of goods?44
No
Yes, block invoices if days_late *
value_of_item is greater than: .
Do you want to block invoice items whose
value exceeds a certain amount? 45
No Yes
If yes, what is the threshold value for invoice
items with purchase order reference?
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For items without purchase order reference?
Do you want to randomly block invoices?46
No
Yes, block percent of all invoice
whose value is larger than dollars
(probability of blocking an invoice with
lesser value decreases proportionally to the
value).
8.3 Document Life47
How long would you like to retain for reference
in the SAP system vendor invoices?
Wait at least days after a vendor invoice
has been created before archiving and then
deleting it.
9
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Abbreviations
AKA Also Known As
ATP Available To Promise
BOM Bill of Material
EAN International Article Number, same as Universal Product Code (UPC) in United States
EDI Electronic Data Interchange
G/L Account General Ledger Account
MM Material Management
MM SRV Material Management External Services Management
MRP Material Requirements Planning
PO Purchase Order
PREQ Purchase Requisition
QM Quality Management
RFQ Request For Quotation
TBC To Be Confirmed
TBD To Be Determined or To Be Defined
UPC Universal Product Code, see also EAN
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End Notes 1 OMSC Check unit of measurement 2 OMS1 Group together units of measure 3 Cross-Application Components | Classification and also OMS2 Define attributes of material types for material master
classification views. 4 Logistics General | Batch Management, also Field Selection for Batches and Vendor Consignment 5 Materials Management | Valuation and account assignment | Set split valuation 6 OMS4 Define material statuses 7 Logistics General | Engineering Change Management 8 WOLP Purchasing | Set up partner determination 9 OMSG and OMSJ under Logistics Master Data: Business Partners | Vendors | Control 10 OMGA and OMGB under Purchasing | Vendor master | Define text types … 11 OME2 Define terms of payment and OMSQ Check Incoterms 12 OME4 Create purchasing groups 13 OMEK Define shipping instructions, also OME1 Define purchasing value keys 14 OME1 Define purchasing value keys 15 OME1 Define purchasing value keys 16 OMCD Set “delivery completed” indicator 17 OMEL Maintain inspection certificate categories 18 OME5 Define source list requirement at plant and Source determination 19 OMEW Purchase requisition | Processing time 20 Set up authorization check for G/L account under PReq, PO, contract, scheduling agreement. 21 Also, Field Selection for Batches and Vendor Consignment 22 Define tolerance limit for archiving, per purchasing document category 23 OMEU Purchase order processing | Set tolerance limits. 24 Purchasing | Shipping notification 25 Purchasing | Conditions 26 Purchasing | Subsequent Settlement 27 Purchasing | Taxes 28 Inventory management | Print Control 29 OMB6, OMCH, and OMJ9 Set manual account assignment 30 OMCP Goods Issue / Transfer Postings | Set up dynamic availability check. 31 OMJ1 Allow negative stock 32 OSP7 Define withdrawal sequence for BOM withdrawal 33 OMB2 and OMB3, Create storage location automatically 34 Inventory management | Reservation 35 OMB9 Inventory management | Define document life 36 OMW1 Define price control for material types 37 Valuation and account assignment | Set split valuation 38 Valuation and account assignment | Account determination 39 Valuation and account assignment | Balance Sheet Valuation Procedure 40 OMR2 Incoming Invoice | Set default values 41 The groups = Tax codes, configured in FI FTXP. In MM you can configure if an invoice may have more than one tax code: OMRL
Incoming Invoice | Determine tax version 42 Invoice Block | Set tolerance limits 43 Invoice Block | Set tolerance limits 44 Invoice Block | Set tolerance limits 45 Invoice Block | Set tolerance limits and Item amount check 46 Invoice Block | Stochastic Block 47 OMRZ Invoice verification | Define document life