material master data participant guide_pregis

PROJECT GUARDIANMATERIAL

MASTER

PARTICIPANT GUIDE

Vendor Master Participant Guide

Table of Contents

Material Master Introduction...............................................................................2Using this Guide....................................................................................................................3

Lesson 1: Material Master Overview..................................................................4Lesson 1 Objectives..............................................................................................................4

Material Types................................................................................................................................................... 5Material Master Creation................................................................................................................................... 5Screen Displays................................................................................................................................................ 5Basic Data 1 View............................................................................................................................................. 5Sales Organization 1 View................................................................................................................................ 7Sales Organization 2 View................................................................................................................................ 8Sales General/Plant View.................................................................................................................................. 8Sales Text View............................................................................................................................................... 10Purchasing View.............................................................................................................................................. 10Purchase Order Text View.............................................................................................................................. 11MRP 1 View..................................................................................................................................................... 12MRP 2 View..................................................................................................................................................... 14MRP 3 View..................................................................................................................................................... 15MRP 4 View..................................................................................................................................................... 17Plant Data/Storage 1 View.............................................................................................................................. 18Plant Data/Storage 2 View.............................................................................................................................. 19Accounting 1 View........................................................................................................................................... 19Costing 1 View................................................................................................................................................ 20Costing 2 View................................................................................................................................................ 22

Lesson 1 Exercise 1 – Display Material Master Record (MM03)................................................................23Lesson 1 Exercise 2 – Create Material Master Record (MM01).................................................................23

Lesson 2: Working with Material Master Data...............................................24Lesson 2 Objectives............................................................................................................24

Lesson 2 Exercise 1– Change Material Master Record (MM02).................................................................24Extend Material Master Record.......................................................................................................................24

Lesson 2 Exercise 2 – Extend Material Master Record (MM01)................................................................25Quick Reference Guides...................................................................................25

Tables and Figures

MATERIAL MASTER INTRODUCTIONThe following topics are covered in this guide:

The importance of Material Master Data Using the existing XXX system Vendor Creation

After completing this course, you will be able to:

Identify the information views and the required fields Define material status designations Post/Park PO related invoices and credit memos Park non-PO related invoices and credit memos Process recurring entries Process automatic payments and review check processing transactions

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Evaluate and analyze vendor accounts

Prerequisites for taking this course are:

Complete the SAP Basic Navigation course

Using this GuideThis guide is designed to provide you with:

Information regarding the listed topics Exercises to practice what you learn Quick reference guides to assist you while doing your job in SAP

Use this guide in a classroom setting to follow along with the instructor and add notes wherever needed. You can also use this guide in a self-paced manner to review how to perform the listed tasks learned in class.

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LESSON 1: MATERIAL MASTER OVERVIEW

Lesson 1 ObjectivesAfter completing this lesson, you will be able to:

Describe the structure of Vendor Master Data Define common SAP terms used in Materials Movement

Organizational Structure in SAP

Accurate master data is one of the key factors for a successful SAP implementation.

Master data is created at different organizational levels because the information contained in the master record is arranged into views that are assigned to organizational elements.Products and services are combined in the SAP System under the term material. All information necessary for the management of a material and its stocks, as well as its use, is maintained in the material master record. This includes, for example, data used for purchasing, manufacturing, sales and storage.

Material types in the SAP ECC system can be, for example, raw materials, trading goods, semi-finished products, finished products, or services. The material type represents certain features of materials in the system, and has important control functions: the material type is used, among other things, to group field selection functions for a material, or to define the screen sequence, the type of number assignment and number ranges during material master record maintenance.

Depending on the material type, different functional areas within the company maintain different data screens. This screen selection applying specifically to an application is called a "view".

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Material TypesMaterial type is a designation that assigns the material to a group of materials such as raw materials, finished products, or operating supplies. A company determines which material types will be used. The table below lists the material types and their definition

Material Type Description

FERT Finished goods

HALB Semi-finished good

ROH Raw Material

DIEN Services

Material Master CreationNeed process diagram and role definitions

Screen Displays

Because of the large of amount of information contained in a single material master record, the viewing method for a material employs multiple data screens. Depending on the material type, different functional areas within the company maintain the different data screens. This screen selection applying specifically to an application is called a "view.” Basic data views are the same across all Pregis locations. Other views are specific for each plant location. Each material is created for at least one plant, but can be “extended” to additional plants. When a material is extended to other plants, the plant specific data can then be changed from plant to plant, if necessary.

Basic Data 1 ViewThis view contains data that is the same across all Pregis locations. Basic data is used to define the general attributes of a material which determine how it will be processed by SAP and what additional information (views) may be required for it to be fully transacted

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Field InformationMaterial Material NumberDescription Material description, up to 40 characters in lengthBase Unit of Measure Unit of measure in which stocks of the material are managedMaterial Group Materials or services with the same attributesDivision Materials, products or services grouped to determine its sales area or

business areaProd. Hierarchy Alphanumeric character string to group materials together by

combining different characteristics. Used for analyses and price determination

Gross Weight Used to check storage bin capacity

There are at least 5 levels for product hierarchy. This is used for sales analysis. Pricing will also use some of these levels to price common materials. The corresponding AVIS tables are as follows:

Level #

AVIS Description AVIS Table Example

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1 Profit Center CT820 01 – AIR CUSHIONING2 Product Code CT825 01 – BUBBLE ROLL STOCK3 Product Category CT645 BLR – ASTRO BUBBLE4 Product Family CT830 LAB – LARGE ASTRO BUBBLE5 Cost Group CT827 2751 – ASTRO BUBBLE L MONO/COLOR

Sales Organization 1 ViewThis view contains information relevant to a particular sales organization.

Field InformationSales Unit of Measure Unit of measure proposes during business transactions relevant for

sales

Cross Distribution Chain and Distribution Chain Status

Restriction of usability of the material for all distribution chains. Defines whether a warning or error message is displayed if material is included in a specific function

Delivering Plant In the sales order, the plant can be automatically copied into the sales order item from a default value in the customer master record, the material master, or the customer material info record. The system checks whether or not it can propose a value (where the material has been extended to that plant), and if the system can propose a value, the plant is copied to the sales order item where you can change it as required. Typically, the default plant is entered in the material master where that material is produced and shipped in only one location for a Sales Organization/Distribution Channel combination. The plant can also be entered in the customer master and in the customer material information record (CMIR). The hierarchy of usage would be 1st-CMIR, 2nd-Customer master and 3rd-Material master

Tax Classification Entered for each country of departure, corresponding to every country in which a plant is defined

Cash Discount Indicator Specifies whether an individual material qualifies for a cash discount if the customer has been assigned payment terms that include a cash discount

Minimum Order Quantity Minimum quantity a customer can orderMinimum Delivery Quantity Minimum quantity that can be deliveredDelivery Unit Minimum unit of quantity for a delivery, all deliveries are a multiple

of this unitRounding Profile Defines how a quantity is rounded up to a given value

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Sales Organization 2 View

Field InformationMaterial Pricing Group Use to group materials in order to apply the same pricing conditionsAccount Assignment Group Used to influence the G/L account determination at billingItem Category Group Used to group materials to determine their appropriate item

category in the sales documentMaterial Groups 1-5 Material Groups are freely definable and can be used for any

purpose, as they are not used by any standard application.

Pricing Ref Material If pricing reference material is entered, pricing conditions for the material entered are used

Volume Rebate Group Group definition that can be used for rebate settlementCommissions Group Commission percentages assigned to materials, always the same for

any single representative, can vary for different representativesProduct Attribute When material is entered in a sales document, the system checks if

the ship-to party accepts the product attribute

.

Sales General/Plant ViewThis view contains data specific to the material and plant.

The General data section contains information relevant to the material’s physical characteristics such as unit of measure and weights.

The Shipping data section is information used in the shipping processes.

The Packaging Material Data identifies the materials used in preparing the material for shipment.

The General Plant Parameters section contains information assigned to the material to manage its business transaction processing

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Field InformationAvailability check Group Specifies whether and how the system checks availability and

generates requirements or materials planning. During Phase 1, Pregis will not check availability during sales order processing; will check availability during delivery processing

Batch Management Indicator This indicator can be set in the material master record manually or, if batches are valuated individually, it is set automatically for the plants concerned, in which case it cannot be changed. The indicator cannot be changed if stocks exist in either the current period or in the previous period. The reason for checking the previous period is because stocks can be posted to this period when goods movements are entered.

Transportation Group Materials that share the same route and transportation requirements. Used for automatic route scheduling during sales order and delivery. The note processing

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Loading Group Materials that share the same loading requirements during shipping.The system uses the loading group as well as the Shipping conditions and the Delivering plant to automatically determine the shipping point for the item.

Material Freight Group Classification according to freight code and class, used in the transportation module for freight cost and settlement

Processing Time Time needed to process to a specific quantity of a material, used in capacity planning in shipping

Base Quantity Used in conjunction with the shipping processing time in capacity planning

Profit Center The profit center key in controlled by FI and reflects a management-oriented structure of the organization for internal control, identifies the business area to which profits are assigned

Serial Numbers Serial numbers assigned to the material

Sales Text View The material sales text is an important item text, as it describes the material in more detail. In the standard version of the SAP system, it is copied automatically from a reference document or a sales and distribution text. As with all item texts, the material sales text can also be entered directly in the sales and distribution document.

Purchasing ViewThe Purchasing view

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Purchase Order Text ViewThe material purchase order text describes the material in more detail. In the standard version of the SAP system, it is copied automatically from a reference document or purchase order text. As with all item texts, the material purchase order text can also be entered directly in the purchase document.

.

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MRP 1 ViewMaterials Requirements Planning (MRP) data determines how SAP carries out MRP calculations and where those calculations take place. Information is contained on for different views. The MRP 1 view identifies basic information on the material and the MRP process.

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Field InformationPurchasing Group Identifies buyers within the Pregis Purchasing Organization, used to

sort and group purchased materials, also used to identify transfer/transport order groupings, which is used by supplying plants to collect requisitions from outlying plants

MRP Type Determines if the material is planned via MPS or MRP and how the firming logic is determinedVB is the indicator for Manual reorder point planning

MRP Controller Person responsible for planning the material usageLot Size Determines the lot sizing procedure used in materials planning to

calculate the quantity to be procured or produced. All materials have lot size key EX – lot for lot order quantity

Reorder Point Level that if stock falls below this quantity, the material must be reordered

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MRP 2 ViewThe MRP 2 View provides information on the methods of procurement and production along with scheduling and stock requirements.

Field InformationProcurement Type Determines if the material is produced or purchased. Type indicators:

E – In-house production F – External procurement X – Both Procurement types Blank – No Procurement

Special Procurement Further determination of procurement type. Type indicators: 10 – Consignment 20 – External procurement 30 – Subcontracting 40 – Stock transfer from 6314

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41 – Stock transfer from 6109 50 – Phantom assembly

Prod. Stor. location Receiving storage location for repetitive manufacturing. If the material is produced, it is the receiving storage location to which the receipt is posted If the material is a component, it is the issuing storage location to which a backflush is posted.

Storage location for EP Storage location proposed in the purchase requisition in materials planning for subsequent storage of the material.

In house production Number of days needed to produce the material in house; must be populated if Procurement type E is entered

Planned Delv Time Number of days needed to receive an externally procured material; must be populated if Procurement type F is entered

GR Processing time Number of workdays required after receipt of the material for inspection and placement into storage.

Safety Stock Quantity of stock that has the purpose to satisfy unexpectedly high demand

MRP 3 ViewThe MRP 3 view focuses on forecasting and planning.

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Field InformationProcurement Type Determines if the material is produced or purchased

Special Procurement Used to transfer requirements to another plantIn-house Production Manufacturing leadtimePlanned Delv Time Purchasing leadtimeSafety Stock Quantity of stock that has the purpose to satisfy unexpectedly high

demand

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MRP 4 ViewThe MRP 4 view contains information relevant to material composition and manufacturing strategies.

Field InformationProcurement Type Determines if the material is produced or purchased

Special Procurement Used to transfer requirements to another plantIn-house Production Manufacturing leadtimePlanned Delv Time Purchasing leadtimeSafety Stock Quantity of stock that has the purpose to satisfy unexpectedly high

demand

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Plant Data/Storage 1 ViewThe Plant Data Storage 1 view is concerned with material storage information, inventory cycle counting and material shelf life.

Field InformationCC physical inventory indicator Indicates that the given material is subject to the cycle counting

method of inventory; also defines at which time intervals a physical inventory is to be carried out for the material.

Unit of Issue Unit of measure in which the material is issued from the warehouse. If the field does not contain an entry, the system will assume that the unit of measure is the base unit of measure

Min remaining shelf life Minimum amount of time for which the material must keep upon goods receipt for the goods receipt to be accepted by the system

Total shelf life Period for which the material will keep in total, that is, from the date of production to the shelf life expiration date

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Period Indicator for Shelf Life Expiration Date

Indicator that specifies the unit of measurement for a period of time, for example, day, week, month year

Plant Data/Storage 2 ViewThe Plant Data/Storage 2 view contains information on the material weight and storage conditions, along with information used in the financial controlling area.

Field InformationGross Weight Gross weight expressed in the unit of weight specified in the Unit of

weight field; defaults from Basic Data 1 viewWeight Unit Unit or measurement referring to the gross weight or net weight of

the material; defaults from Basic Data 1 viewNet Weight Net weight expressed in the unit of weight specified in the Unit of

weight field; defaults from Basic Data 1 viewProfit Center Key which together with the controlling area uniquely identifies a

profit center, area to which profits are assigned

Accounting 1 ViewThe Accounting 1 view is maintained by the Finance and Controlling department. Accounting data controls details relating to how material is valued and how transactions impacting it are posted to the General Ledger.

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Field InformationValuation Class Controls automatic account postings for inventory movement.

Separate valuation classes are required for each material typePrice Control Controls whether a material is valued at standard or moving average.

All production related materials are standard priced controlledPrice Unit Net weight expressed in the unit of weight specified in the Unit of

weight field; defaults from Basic Data 1 view

Costing 1 ViewThe Costing 1 view is also maintained by Finance and Controlling. Costing data controls detail relating to how material is costed for transactional exchange with customers or in-house affiliates

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Field InformationDo Not Cost Indicator that material is excluded from standard cost calculation

process; prevents accidental costing and eliminates false costing process errors

With Qty Structure Indicates that material has a quantity structure (Bill of Material and Routing) used in cost estimation process. Required for all direct materials and purchased semi-finished goods, Default setting for appropriate material types

Material Origin If this indicator is set, the material number will be written to the cost element itemization in the Controlling module. Require for all direct materials

Plant Specific Material Status Restricts the usability of the material for the plant concerned, that is, it defines whether a warning or error message is displayed if you include the material in a particular function

Profit Center Designates the assignment of the material to a profit center and is the default profit center for all inventory movements in and out of stock

Spec Procurem Costing Identifies the source of material that is transferred from another plant, if it is subcontracted or if special treatment is required

Costing Lot Size Provides the basis for lot charges (amounts applied in total during the cost calculation process)

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Production Version Can be used to control the material version that is used in cost calculation process

Version Indicator Indicates that a production version (Bill of Material/Routing combination) exists; indicates which specific version should be used for a cost estimate

Versions Link to select available versions of the material

Costing 2 ViewThe Costing 2 view is also maintained by Finance and Controlling. Its focus is current material valuation and planned prices.

Field InformationValuation Class Controls automatic account postings for inventory movement.

Separate valuation classes are required for each material typePrice Control Controls whether a material is valued at standard or moving average.

All production related materials are standard priced controlled

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Price Unit Net weight expressed in the unit of weight specified in the Unit of weight field; defaults from Basic Data 1 view

Lesson 1 Exercise 1 – Display Material Master Record (MM03)Scenario: Purchase orders were created in the system and have arrived at the receiving location. A goods receipt with reference to the purchase order is executed in the system. For this exercise, a valuated material is received and must be placed in a storage location.

Note to Instructor: Assign the following information to each participant:

Support Document: MIGO - Create Gods Receipt for a Purchase Order

Transaction Code MIGO

Complete the following field(s): Required Data

Lesson 1 Exercise 2 – Create Material Master Record (MM01)Scenario: Purchase orders were created in the system and have arrived at the receiving location. A goods receipt with reference to the purchase order is executed in the system. For this exercise, a valuated material is received and must be placed in a storage location.





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LESSON 2: WORKING WITH MATERIAL MASTER DATA

Lesson 2 Objectives

Need Process to Change Material Master

Lesson 2 Exercise 1– Change Material Master Record (MM02)Scenario: Purchase orders were created in the system and have arrived at the receiving location. A goods receipt with reference to the purchase order is executed in the system. For this exercise, a valuated material is received and must be placed in a storage location.





Extend Material Master Record

The Material Master is maintained at different organization levels such as client, plant, and storage location.

A Material Master record is created in following cases:

If no material master record exists for a particular material. In this case, you must create the material master record.

If a material master record exists for a particular material, but the master for your department is missing. In this case, you must extend the material master record.

If a material master record exists for a particular material and the master data for your user department is entered, but not for the appropriate organizational level. In this case, you must extend the material master record.

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Lesson 2 Exercise 2 – Extend Material Master Record (MM01)Scenario: Purchase orders were created in the system and have arrived at the receiving location. A goods receipt with reference to the purchase order is executed in the system. For this exercise, a valuated material is received and must be placed in a storage location.





QUICK REFERENCE GUIDES

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material master data participant guide_pregis

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