mm enterprise structure configuration
TRANSCRIPT
SAP MM/WM Configuration Pack
Enterprise Structure
Published by Team of SAP Consultants at SAPTOPJOBS
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Copyright 2006-07@SAPTOPJOBS
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INDEX1. Over-view:------------------------------------------------------------------------------------42. Getting into the Configuration area of SAP-----------------------------------113. Enterprise structure--------------------------------------------------------------------14
3.1 Define valuation level------------------------------------------------------------163.2 Define Plant--------------------------------------------------------------------------183.3 Maintain plant details and Factory calendar in Plant---------------213.4 Define Location---------------------------------------------------------------------233.5 Maintain Storage Location-----------------------------------------------------253.6 Maintain Purchase organization---------------------------------------------293.7 Assign Plant to company-------------------------------------------------------313.8 Assign purchase organization to the company code---------------323.9 Assign purchase organization to plant------------------------------------33
4. Material Master---------------------------------------------------------------------------344.1 Assign field to field selection groups--------------------------------------354.2 Define plant specific field and screen selection----------------------394.3 Define material type-------------------------------------------------------------404.4 Define Number range for each material type--------------------------444.5 Define industry sector-----------------------------------------------------------464.6 Maintain user specific settings-----------------------------------------------474.7 Set material block for goods movement---------------------------------504.8 Define storage location MRP per plant-----------------------------------52
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1. Over-view:-
MM Module is the one of the most important logistics modules in SAP. MM module covers the following basic functions
Planning
Procurement
Inventory Management
Planning: -
The following are the two types of planning in MM module.
Consumption Based Planning Material Requirement Planning
Consumption Based Planning is based on past consumption pattern. In this type of planning requirement is triggered by the stock level and NOT by any planned independent requirement or dependant requirements.
Material Requirement Planning is the detailed planning based on requirements and stock levels.
Procurement: -
Procurement activities involves everything from the stage of identifying vendors up to making payments to the respective vendor.
The following are the important procurement functions: -
Identify the vendor
Negotiate the terms and conditions
Release the purchase order
Follow up for supplies
Ensure right quantity and quality materials are received at right time
Ensure payment to the vendor at right time as per the agreement terms.
Procurement Proposals: -
As a result of planning, procurement proposals are created for the net requirement quantities either in terms of planned order or as purchase requisitions.
If it is a planned order, it has to be converted to the purchase requisition. This is an important function between planner and the procurement person.
If purchase requisitions are directly generated, it has to be converted to purchase order.
Purchasing: -
Purchasing is the process of releasing the document to the identified vendor authorizing him to supply the materials at a negotiated price.
Three important purchasing methods are
a. Purchase Order
b. Contracts
c. Scheduling Agreement
a. Purchase Order: - It is the process of issuing PO to the vendor requesting him to supply according to the requirements as a one time or as per the delivery schedule.
b. Contracts: - Contracts of quantity based or rate based can be issued to the vendor authorizing him to supply till reaching certain quantities or certain value of supply is reached. Every contract will have a release order.
c. Scheduling Agreement: -
Scheduling agreement is similar to PO. It will specify the quantity, rate but the schedule of delivery will be informed through the delivery schedule to the vendor.
Each scheduling agreement will have a delivery schedule. If scheduling agreement is available with a vendor, MRP can automatically create the delivery schedule instead of PR or Planned order during MRP run.
Inventory Management: -
Entire stocks and material movements are dealt in inventory management. Each material movement is associated with a movement type number. Movement type is responsible to determine the right GL account for FI postings.
When performing the inventory management transactions system performs the following actions instantly
Material document is generated FI document is generated Controlling document is generated Inventory is adjusted
Inventory Management is tightly integrated with MRP and MRP data.
Master Data in MM: -
As in every module, Master data plays a major role in MM module as well. Following are the important master data in MM module.
Material Master (across all modules)
Vendor Master
Purchase Info record
Quota arrangement (MM and PP modules)
Source List
Integration of MM with other Modules: -
Materials Management and its component inventory management is directly linked with MRP, purchasing and invoicing for vendor supplies.
MRP takes the inventory into account and also the expected receipt and issues during MRP run which is the vital data for successful MRP.
MM with PP
Staging of components for production order
Receipt of finished products into the warehouse
MM with QM
A movement type determines whether the material is subject to QM or not.
Goods posted to QM stock if it is subjected to QM
MM with SD
Availability check can be carried out on creating sales order
As soon as the delivery against the sales order is created, that quantity is marked for delivery and deducted from stock when performing post goods issue (PGI) for delivery.
Special sales order stocks can be maintained.
MM with PM
Goods movements are performed with respect to Equipment BOM Maintenance order With serial number management, serial number can be
entered with every serial number
MM with FI
When posting the material movements, GL accounts are determined through movement type and valuation class information.
Entire accounting entries are posted instantaneously
OK friends, having understood the over view of MM module; let us try to look at what is there in store with this MM pack for you.
For ease of learning and better understanding of MM module, it is divided in to five topics as mentioned below.
Enterprise structure
Planning
Master Data and PR
Purchasing
Inventory Management
To the each one of the above topic, complete configuration, user manual and power point presentation is provided.
Configuration - Enterprise Structure: -
Define PlantDefine Storage LocationAssign Plant to a companyDefine Purchase OrganizationPurchase organization assignmentDefining material master field selectionMaterial Master Plant specific field selectionDefine Material TypeDefine number range for material typeDefine Industry sector for material master.
Configuration - Planning:-
Complete configuration of Material Requirement Planning
Consumption based planning
Configuration - Master Data and PR: -
Define system message attributesDefining purchase value key
Define payment termsDefine Inco termsDefine Account Group (Field selection for vendor
master)Define number range for account groupDefine purchasing groups
Define copying rulesDefine Document typesConfigure Release strategy for PR
Configuration – Purchasing: -
Define Document typeDefine Number RangeDefine tolerance limit for price varianceRelease procedure for Purchase ordersConfigure stock transport ordersDefine Access SequenceDefine Condition TypeDefine calculation schemaDefine Schema determinationAccount Determination
Configuration – Inventory Management: -
Define Plant ParametersDefine Field selection for goods movementsMovement type settingConfigure automatic storage location creationDefine screen layoutDefine availability check for movement typesConfigure negative stockDefine output determinationConfigure stock determinationConfigure split valuation
2. Getting into the Configuration area of SAP
BACKGROUND
There are two types of access to the user in SAP.
1. Easy access - used to access daily transactions2. Project view or IMG – used to access for
configuration.
SAP Easy access is to perform the master data maintenance and perform transaction. SAP configuration is to maintain the backend settings according to the business requirements.
Access to each transaction is controlled by authorization. Follow the steps explained here to get into the configuration area in SAP.
INSTRUCTIONS
1. Type SPRO in the SAP main screen dialog box,
2. Click
3. Click on
4. Click appropriate node to look at more details.
When the menu path is mentioned as “IMG”, follow the above steps.
3. Enterprise structure
Enter price structure describes the entire organization details. Organizational details are broadly divided into the two areas like financial area and logistics area.
Financial area deals with
company code
controlling area
Currency and more.
Logistics area deals with
Plant
Storage location
Sales organization
Sales Distribution channel
Sales Division etc.
Organisational Units: Materials Management
Companycode
Companycode
ControllingArea
ControllingArea
PlantPlant
CompanyCompany
Purchasing OrganizationPurchasing Organization
Storage location
Storage location
3.1 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 Define valuation level
1. Click
2. Select the radio button
3. Click Save
3.2 Define Plant
BACKGROUND
This configuration setting enables to define the plant. Each manufacturing facility or branch of a company is 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
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 accounts is done by the FI team. However the creation of plant is demonstrated.
3.3 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 plant and 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.
3.4 Define Location
BACKGROUND
This configuration setting enables to define the location. Location indicates where the materials are stored inside the plant.
INSTRUCTIONS
Follow the Menu Path: IMG Enterprise structure Definition Logistics - General Define Location
1. Click
2. Click
3. Update required and optional fields:Field Name Description ValuePlant Name of the plant e.g. IND6Location Location
identificationE.g. PROD
Name 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
7. Click
8. Click .
3.5 Maintain Storage Location
BACKGROUND
This configuration setting enables to define the physical storage location. This will indicate where the stocks 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 Maintain storage 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
Select the storage location
Double Click
Enter the sequential number 1
Click
Select the sequence number
Click
Maintain the address.
Click
Click
Repeat the above to maintain the address for all storage locations.
3.6 Maintain Purchase organization
BACKGROUND
This configuration setting enables to define the purchase organization.
Purchase organization is the part of the enterprise structure from MM point of view. It represents the responsibilities to
Procure materials and services
Negotiation with vendor
Purchase organization is assigned to the company codes and plants. Following are the possibilities of assignments.
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 IND6
4. Click .
3.7 Assign Plant to company
BACKGROUND
This configuration setting enables to assign plant to the company code.
INSTRUCTIONS
Follow the Menu Path: IMG Enterprise structure Assignment Logistics – General Assign plant 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 .
3.8 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 Assign purchase 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
3.9 Assign purchase organization to plant
BACKGROUND
This configuration setting enables to assign the purchase organization to a plant.
INSTRUCTIONS
Follow the Menu Path: IMG Enterprise structure Assignment Materials Management Assign purchase 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.
4. Material Master
Material master contains all information about a material. All the information have to be maintained by the different end users.
Example:
Physical, sales and storage related details of a material is maintained by the logistics team
Finance related information is maintained by the finance team
Quality related information is maintained by the QM team
Views on a Material Master
Materialmaster
MRP
St
t
Purchasing
Sales
Workscheduling
Storage
Qualitymanagement
Warehousemanagement
Classification
Forecasting
Accounting
Basic Data
Ok, now let’s go to the configuration details of material master.
4.1 Assign field to field selection groups
BACKGROUND
This configuration setting enables to define the field in the material master as mandatory or optional or to hide.
Let’s try to make the purchasing value key as mandatory entry for plant IND6.
INSTRUCTIONS
Follow the Menu Path: IMG Logistics – General Material master Field Selection Assign fields to field selection groups
1. Click
2. Click in purchasing value key row
3. Create new field ref by copying from the standard SAP entry. E.g. IND6 as field reference.
4. Click
5. Select the field selection as required entry
6. Click
4.2 Define plant specific field and screen selection
BACKGROUND
When there are more than one Bill Of Material, system will select the first alternate by default.
It can be configured in such a way that system takes the right alternate for a given period.
INSTRUCTIONS
Follow the Menu Path: IMG Logistics – General Material master Field Selection Define plant specific field selection and plant specific screen selection
1. Click
2. Maintain field reference as IND6 for plant IND6.
3. Click Save .
4.3 Define material type
BACKGROUND
Similar to the above alternate defining in production area, for other areas like Inventory, MRP, Costing, Sales and Distribution and Plant Maintenance can be maintained.
Only the menu path is given here and the rest of the settings are similar to above 1.1.8.
INSTRUCTIONS
Follow the Menu Path: IMG Logistics – General Material master Basic settings Material types Define Attributes of Material Types
1. Click
2. Select ROH by clicking the grey box in the left
3. Click to copy from ROH to the new material type
4. Type the new material type as YROH
5. Maintain the field reference as FERT
6. Select sales view
Note: - Standard settings are sufficient.
Field name DescriptionField reference Field references are taken
from this material type.X plant material status Cross plant material status to
restrict the usage of material in all the plants.
Item category group Default item category group to determine the item category for the material type.Tick in this check box will make the initial status of the batch as restricted.
Tick in this check box will not check with the external number range when creating the material master.Price control which will appear in the material master. However it can be changed in the material master.Indicates that the Quantity update in specific valuation area.Indicates that the value update in specific valuation area.
Double click
Select the check box only in the relevant valuation area. E.g. IND6, IND7 and IND9
7. Click
8. Click
9. Click Save
Effect of this configuration setting with initial status check box ticked.
When the new batch is created, the initial status of that batch will be restricted.
Note: -
Considering the restricted batch for MRP will be controlled by the IMG setting for MRP.
The batch status can be changed to unrestricted-use only through manually or through the QI Usage decision.
4.4 Define Number range for each material type
BACKGROUND
This configuration setting enables to define the number range for material type.
Each material type must have a number range so as to enable to create the material of that type.
INSTRUCTIONS
Follow the Menu Path: IMG Logistics – General Material master Basic settings Material types Define Number Range for Each Material Type
1. Click
2. Click
3. Click F6 or from the top, follow the menu path. GroupInsert to insert the new group
4. Maintain the Text for the new group and maintain the interval for internal and external number range
5. Click .
6. Click to assign to the material type
7. click on the material type from the Not assigned list
8. Click
9. Tick the group check box to which number range is to be assigned to this material type
10. Click
11. Click .
4.5 Define industry sector
BACKGROUND
This configuration setting enables to define the industry sector and field selection specific to the industry sector.
Industry sector definition is the one through which any screen sequence can be changed. Industry sector is the mandatory entry when creating the material master.
INSTRUCTIONS
Follow the Menu Path: IMG Logistics – General Material master Field Selection Define industry sector and Industry-sector-specific field selection
1. Click
2. Select the Mechanical engineering by clicking the grey box in the left
3. Click
4. Maintain industry sector. E.g. Z
5. Maintain industry description. E.g. Mechanical engineering-sp
6. Maintain field reference. E.g. IND6
7. Click
8. Click
4.6 Maintain user specific settings
BACKGROUND
This configuration setting enables to maintain the setting for material master creation specific to the user.
By this way, users can be restricted from accessing certain data.
INSTRUCTIONS
Follow the Menu Path: IMG Logistics – General Material master configure the material master Maintain User settings
1. Click
2. Click
Maintain the entries as shown below.
3. Click 4. Click
Maintain the entries as shown below
5. Click
Effect of this configuration
When user sapuser6 try to create material master, industry sector will not appear to him.
4.7 Set material block for goods movement
BACKGROUND
This configuration setting enables to define the block for material. This is essential to prevent usage of same material by different user at a given instance.
INSTRUCTIONS
Follow the Menu Path: IMG Materials Management General settings for Materials Management
1. Click
2. Select the appropriate material block
Lock exclusively – when the material master is read during the goods movement, plant data and accounting data are locked till the material is posted.Another user can not use this material at this time.
Late lock – data will be blocked only at the time of saving.
3. Click
4.8 Define storage location MRP per plant
BACKGROUND
This configuration setting enables to define the usage of storage location stock during MRP run.
INSTRUCTIONS
Follow the Menu Path: IMG Materials Management Consumption Based Planning Planning Define Storage Location MRP per plant
1. Click
2. Enter Plant. E.g. IND6
3. Click
4. Select 1 to exclude storage location from MRP
5. Click
6. Click to reach main IMG menu
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