Introduction to SAP R3 (MM)

Software ERP: SAP R/3Sales andDistributionMaterialManagementControllingFinancialAccounting

*Komponen Materials Management

*Data OrganisasiSuatu hirarkhi dimana unit-unit organisasi dalam suatu perusahaan diatur berdasarkan tugas dan fungsiMerupakan data statik dan jarang diubahPendefinisian unit organisasi adalah suatu langkah dasar, merupakan suatu faktor kritis yang menentukan bagaimana perusahaan akan distrukturkan

Struktur Organisasi

*Struktur OrganisasiClientCompanyPlantValuation AreaStorage LocationsPurchasing OrganizationsPurchasing Groups

ClientClient adalah suatu unit dalam sistem SAP R/3 yang bersifat self-contained baik dari istilah legal dan organisasi maupun istilah data, dengan record master terpisah dan kumpulan tabel independen. Dari sudut pandang bisnis, client dapat merupakan representasi dari suatu grup korporasi. Client: 3 digit numerik.

CompanyCompany merupakan unit organsasi terkecil dari akuntansi eksternal dimana suatu sistem pengarsipan self-contained yang lengkap dapat direplikasikan. Company code merepresentasikan suatu unite independen yang menghasilkan balance sheet tersendiri, sebagai contoh, suatu perusahaan dalam suatu grup korporasi (client).Company code = 4 karakter

*PlantMerupakan area valuasi terendahLevel organisasi dimana Material Requirements (MRP) berjalanUmumnya digunakan untuk menggambarkan suatu situs produksi, suatu pusat distribusi atau gudang terpusatBisa merupakansuatu unit fisik atau logik

*Valuation AreaArea valuasi menentukan pada level mana suatu material dinilai (nilai persediaan dihitung)SAP R/3 memungkinkan valuasi pada level company code atau plant, tetapi disarankan area valuasi diset pada level plantYang berarti setiap plant dapat memiliki harga material dan determinasi akun tersendiri

*Storage LocationSub divisi dari sebuah plant Dimana material di atur (manajemen persediaan)Raw MaterialsMaintenance, Repair, and Other (MRO)Finished ProductBisa merupakansuatu unit fisik atau logik

*Organizational Relationships Plant/Storage Location

Purchasing Organizations

Suatu unit organisasi yang bertanggung jawab pada pengadaan material atau jasa untuk satu atau lebih plant dan untuk melakukan negosiasi kondisi umum dari pembelian dengan para vendor. Purchasing organization mengasumsikan tanggung jawab legal untuk semua transaksi pembelian eksternal.

*SAP mensyaratkan purchasing organizations ditetapkan pada level plantPurchasing organization juga dapat ditetapkan pada lebih dari satu plant Purchasing organization juga dapat ditetapkan pada suatu company code

*Plant/Purchasing Organization (1) Satu plant banyak purchasing organizationsOrganizational Relationships

*Plant/Purchasing Organization (2) Setiap plant memiliki unit purchasing organization sendiriOrganizational Relationships

*Plant/Purchasing Organization (3) Satu purchasing organization untuk banyak plantOrganizational Relationships

*Organizational RelationshipsPlant/Purchasing Organization (4) Satu purchasing organization untuk banyak company codes

Purchasing GroupsPurchasing organization selanjutnya dapat dibagi ke dalam purchasing groups (buyer groups), yang bertanggung jawab pada aktivitas pembelian harian.Suatu purchasing group dapat juga bertindak bagi sejumlah purchasing organizations.

Purchasing organizationpurchasing group MG 0, 3purchasing organizationpurchasing group MG 1, 4plantmaterial group

*Organizational Relationships Purchasing Organization/Purchasing Group Purchasing Group002Purchasing Group001Purchasing Organization P001

*Organizational Structure

Inventory Management with a Warehouse Management Systemclient0001plantstorage location001warehouse number001storage type05-04-0300205-04-04storage binMMWMcompany code001 ABC inc.0001 Jones inc.0002 Model Ltd.purchasing organization00010001000200030002000300040001000200030004distrib.-centerfactory(physical stock)

Fungsi-fungsi Utama Modul MM

MM interdependensi dengan modul lainMM

material masterpurchasingrequirements plan.inventory mgmt.invoice verificationSDsales and distrib.PMplant maintenanceQMqualitymanagementPPproduction planningLogistikFIfinancial acc.COcontrollingAMfixed assets mgmt.

Data DasarMaster records meliputi informasi tentangvendorsmaterial dan jasa yang akan diadakanRelasi antara 1. and 2. (purchasing info record) seperti prices / terms and conditionsBills of material forproduction planningpurchasingsales and distributionwithdrawal of Material

invoice entryinvoice verificationpayment handling request for quotation quotation processing purch. order handlingStructure of the Vendor Master RecordGeneral datanameaddresscontrol dataaccounting databank accountacc. maintenancepaymentpurchasingterms and cond.partner functionscurrencyutilizationfor each purchasing organizationclient wide orfor eachcompany codeclient widearea of validitysections

Create a VendorCreating Your Own Vendor Master RecordUsageWe recommend that you create your own vendor master record for this scenario. If, however, you prefer to use the reference vendor instead, it could be that the order currency has already been changed and this IDES scenario may no longer work.

You create a German vendor in company code 1000, IDES AG Germany, to create purchase orders and invoices denominated in euros.

Create a VendorProcedureCall up the transaction as follows:

Menu PathLogistics Materials Management Purchasing Master Data Vendor Central CreateTransaction CodeXK01

Create a vendor.

On the Create Vendor: Initial Screen, enter the following data:

FieldDataVendorYour own vendor (choose a number between 1000 and 1999)Company code1000Purch. organization1000Account groupLIEFReference vendor1080Reference company code1000Reference purchasing organization1000

Create a VendorOn the Create Vendor: Address screen, enter the following data:

FieldDataDescriptionAnySearch termAny, for example "euro"Street/House numberAnyPostal code/City5-figure, numerical (any)CountryDELanguageDE

Choose until you reach the Create Vendor: Accounting and make sure that 160000 appears in the Reconciliation Account 160000 field. Choose until the Create Vendor: Purchasing Data screen appears. On the Create Vendor: Purchasing Data screen, check that the order currency is EUR. Choose until the Create Vendor: Partner Functions screen appears.Choose until the Create Vendor: Partner Functions screen appears.Choose until the Create Vendor: Partner Functions screen appears.Create a Vendor

Create a Vendor

Create a Vendor

Create a Vendor

Views on the Material Master Recordeach view is maintained by a certain user department of the firm

accounting: valuation- und calculation-specific informationrequirements planning: information about material requirements planning (e. g. reorder point)purchasing: e. g. responsible purchasing group, order unitengineering: technical informationstorage: information about warehousing, material movements, ...forecast: information about the forecasting of the material requirementsS & D: informationen about sales orders and price determination

Demo: Create Material Master

Demo: Create Material MasterSelect the views: Basic data 1, Purchasing, Purchase Order text, Gl. Plant Data/Storage 1, Accounting 1

Demo: Create Material Master

Demo: Create Material Master

Demo: Create Material Master

Demo: Create Material Master

Demo: Create Material Master

Demo: Create Material MasterSAVE

purchasing info record

outline agreem.Purchasing Processdetermination: source of supplypurchase order processing?

XXXXX

XXXXX

Create Purchase Order (PO)vendor knownvendor not knownterms & cond.source listvendorinfo record3assigned purchase requisition exists (from user department)

Purchasing ProcessCreate a requisitionFirst release of requisition Create RFQ (Request for Quotation) with reference to requisitionCreate PO (Purchase Order) with reference to RFQDepartment receives material ordered (GR)Department pays invoice (MIRO).

Purchase RequisitionDocument generated by a user department or storeroom-personnel to notify the purchasing department of items it needs to order, their quantity, and the timeframe. It may also contain the authorization to proceed with the purchase. Also called purchase request or requisition.

Request for QuotationIs a standard business process whose purpose is to invite suppliers into a bidding process to bid on specific products or services. RFQ generally means the same thing as IFB (Invitation For Bid)

Purchase OrderBuyer-generated document that authorizes a purchase transaction. It sets forth the descriptions, quantities, prices, discounts, payment terms, date of performance or shipment, other associated terms and conditions, and identifies a specific seller.

Create Purchase Requisition

Create Purchase Requisition

Create Purchase Requisition In the item, enter your material, Plant= 1000, QT = 100

Create Purchase Requisition Save your Purchase requisition

Take note of Purchase requisition number

Demo: Create Purchase Order

Demo: Create Purchase Order Open document overview: Click on document overview button

Choose Selection variant list icon

Then select My purchase requisition, you will get your purchase requisition listed

Click on adopt icon, your purchase requisition will be copied to the purchase order (or you can drag and drop it into the shopping cart)

Demo: Create Purchase Order

Demo: Create Purchase Order Enter your vendor, and price 30 euro and save

Posting an Order Entry (Goods Receipt)MMLogisticspurchasingreq. planninginventorycontrollinginvoice verificationgoods receiptinventory mgmt.goods issue.transfer postingSDsales and distrib.PMplant maintenanceQMqualitymanagementPPproduction planningFIfinancial acc.COcontrollingAMfixed assets mgmt.

Demo: Posting Order Entry (Goods Received)1. Use T_code : MIGO 2. Select Goods Receipt 3. Select Purchase Order 4. Enter PO number for goods to be received. 5. Hit "Enter"

Demo: Posting Order Entry (Goods Received)6. Enter Document date & posting date 7. Enter Header text (comment) if necessary. 8. Close detail data.

Demo: Posting Order Entry (Goods Received)9. Notice that movement data is "101" 10. If you only received first item, then Check the "OK" box for first line item.therefore, the second item need not be processed

Demo: Posting Order Entry (Goods Received)11. If you only received 3 pcs out of 10 pcs of item one & 2 pcs out of 10 pcs of item two, then Check the "OK" box for both line item 12. Input actual quantity (3 & 2 pcs ).13. Hit "Enter"

Demo: Posting Order Entry (Goods Received)14. Click "Check" button to find out if there is any error. 15. Check the "status" column . . Green means OK . Yellow means Warning . Red means error

Invoice Verificationinputinformationinvoice verificationoutputinformationordersactions: enter invoiceverify invoicepost invoiceupdate relevant data(re-edit invoice)goods receiptmaster data:materialvendorsaccountsterms & cond.financial accountingasset managementcost accounting

Create InvoiceCreate Invoice using Tcode MIROEnter the Purchase order no. and click on Enter, to display the material details.Enter the Required details in all Tabs

Create Invoice (contd..)Click the check box, to calculate the Tax

Create Invoice (contd..)Enter the Amount and click on save

Create Invoice (contd..)Invoice is created

Demo: Invoice VerificationUsing the tcode: MIRO"

Demo: Invoice Verification

Demo: Invoice Verificationnet amount for positions

*The SAP R/3 is mainly structured in modules:The top level are functional modules.In this slide green modules belong to Logistics. These are: SD (Sales and Distribution), MM (Material Management), PP (Production Planning and Controlling), QA (Quality Assurance), PM (Plant Maintenance).The accounting modules are red: FI (Financial Accounting), CO (Controlling, Cost Accounting), AM (Asset Management), PS (Project System).Human Resource Management is the yellow module.OC means office communication like emailing.IS stands for Industry Solutions. These are branch-specific packages (e.g. automotive, retailing, oil industry).Currently, HR is the only module which is separated from the other modulsECC 6.0January 2008 SAP AG and The Rushmore Group, LLC 2008*Purchasing (MM-PUR) PurposeThe R/3 System consists of a number of components that are completely integrated with one another. This integration allows the various departments and units of an enterprise to share and maintain the same information. Purchasing is a component of Materials Management (MM). The Materials Management (MM) module is fully integrated with the other modules of the SAP System. It supports all the phases of materials management: materials planning and control, purchasing, goods receiving, inventory management, and invoice verification.The tasks of the MM Purchasing component are as follows:External procurement of materials and servicesDetermination of possible sources of supply for a requirement identified by the materials planning and control system or arising directly within a user departmentMonitoring of deliveries from and payments to vendorsGood communication between all participants in the procurement process is necessary for Purchasing to function smoothly.

ValuationMM - Material Price Change (MM-IV-MP) Balance Sheet Valuation (MM-IM-VP) Actual Costing/Material Ledger (CO-PC-ACT)

Inventory Management and Physical Inventory (MM-IM) PurposeThis component deals with the following tasks:Management of material stocks on a quantity and value basis Planning, Entry, and Documentation of all Goods Movements Carrying out the Physical InventoryFeatures

Material Master (LO-MD-MM) PurposeThe material master contains information on all the materials that a company procures or produces, stores, and sells. It is the company's central source for retrieving material-specific data. This information is stored in individual material master records.

MRP Procedures in Consumption-Based Planning UseIn consumption-based planning, the following MRP procedures are available:Reorder point procedure Forecast-based planning Time-phased materials planning

Logistics Invoice Verification (MM-IV-LIV) PurposeLogistics Invoice Verification is a part of Materials Management (MM). It is situated at the end of the logistics supply chain that includes Purchasing, Inventory Management, and Invoice Verification. It is in Logistics Invoice Verification that Incoming Invoices are verified in terms of their content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The system updates the data saved in the invoice documents in Materials Management and Financial Accounting.

Product CatalogA number of media can be used as vehicles for presentations, including:Print mediaCD-ROMOnline services (such as internet, T-Online, CompuServe, AOL)Information kiosks at the point of purchaseThe Product Catalog functionality comprises a programming interface (Business API) for accessing the data and integrated maintenance of product catalog-related data. This data comprises:The layout of the product catalogThe materials and prices in the product catalogTextsMulti-media objects (graphics, sound documents, video clips etc.).Service MasterMM External Services Management provides a basic process for the procurement of externally performed services. This basic process comprises the following functionality: Foreign TradeOfficial customs brokers are licensed by the customs service to assist you with import and export transactions. They have the responsibility to ensure that all foreign trade customs procedures are followed completely and comply to legal regulations. They also ensure that the duties collected from your company are turned over to the government when they become due. Although the services of a customs broker replace the need for your company to handle the necessary tasks associated with foreign trade, they can be very costly. SAP's FT system incorporates all of the necessary checks and balances necessary to ensure that your import and export transactions are handled lawfully and that the duties owed to the customs authorities are calculated instantly and accurately. ECC 6.0January 2008 SAP AG and The Rushmore Group, LLC 2008*Master data does not change very oftenOrg data should not changeTransaction data (application data) changes every transactionIf you setup organizational data and wish to change it, it very well may be more work than the initial setup.

*ECC 6.0January 2008 SAP AG and The Rushmore Group, LLC 2008*There are five organizational structures that we will define for our material managementPlantValuation areaStorage locationsPurchasing organizationsPurchasing groups

**ECC 6.0January 2008 SAP AG and The Rushmore Group, LLC 2008*Plant is a physical or logical locationIt may be a warehouse: PHYSICALVendor are in warehouse (Vendor managed inventory)Customer site (consigned inventory): LOGICAL Can do multiple plants within the same physical structureWe value material at the plant level. Planning done at the plant not organizational level

The plant is an operating area or branch within a company.The plant is embedded in the organizational structure as follows:The plant is assigned to a single company code. A company code can have several plants.Several storage locations in which material stocks are managed can belong to a plant.A single business area is assigned to a plant and to a division.A plant can be assigned to several combinations of sales organization and distribution channel.A plant can have several shipping points. A shipping point can be assigned to several plants.A plant can be defined as a maintenance planning plant.A plant has the following attributes:A plant has an address.A plant has a language.A plant belongs to a country.A plant has its own material master data. You can maintain data at plant level for the following views on a material master record in particular: MRP, Purchasing, Storage, Work scheduling, Production resources/tools, Forecasting, Quality management, Sales, Costing. The plant plays an important role in the following areas:material valuationIf the valuation level is the plant, the material stocks are valuated at plant level. If the valuation level is the plant, you can define the material prices for each plant. Each plant can have its own account determination.inventory managementThe material stocks are managed within a plant.MRPMaterial requirements are planned for each plant. Each plant has its own MRP data. Analyses for materials planning can be made across plants.productioncostingIn costing, valuation prices are defined only within a plant.plant maintenanceIf a plant performs plant maintenance planning tasks, it is defined as a maintenance planning plant. A maintenance planning plant can also carry out planning tasks for other plants (maintenance plants).

ECC 6.0January 2008 SAP AG and The Rushmore Group, LLC 2008*We are going to create at the plant level.System defaults to plant level.Define valuation levelYou define the valuation level by specifying the level at which material stocks are valuated. You can valuate material stocks at the following levels:Plant levelValuation must be at this level in the following cases:If you want to use the application component Production Planning (PP) or CostingCompany code levelThe decision you make is valid for the whole client. You are recommended setting material valuation at plant level.ECC 6.0January 2008 SAP AG and The Rushmore Group, LLC 2008*Maintain storage locationA storage location is the place where stock is physically kept within a plant.A storage location has the following attributes:There may be one or more storage locations within a plant.A storage location has a description and at least one address.It is possible to store material data specific to a storage location.Stocks are managed only on a quantity basis and not on a value basis at storage location level.Physical inventories are carried out at storage location level.A storage location can be assigned to a warehouse number in the Warehouse Management System . You can assign more than one storage location to the same warehouse number within a plant.Storage locations are always created for a plant.

Could be inventory managementProduction floorQualityEngineering bin

ECC 6.0January 2008 SAP AG and The Rushmore Group, LLC 2008*Storage locations are assigned to a plantDo not confuse inventory locations with storage locationsStorage locations equates to a warehouseInventory location is a bin or place where individual inventory is keptWe would want to create these things because we want to have them in quality until we inspect them.

Could have a return: Check the return before we place it back into inventory. *ECC 6.0January 2008 SAP AG and The Rushmore Group, LLC 2008*Required to a plant PO org purchases for the plantMultiple purchasing orgs Centralized Does it for all plantsMaintain purchasing organizationFrom the Materials Management and Purchasing view, the purchasing organization is responsible for all purchasing activities (including the processing of requests for quotations and purchase orders, for example).The purchasing organization is integrated within the organizational structure as follows:A purchasing organization can be assigned to several company codes. (= Corporate-group-wide purchasing).A purchasing organization can be assigned to one company code. (= Company-specific purchasing).A purchasing organization can also exist without being assigned to a company code.Since each plant must be assigned to a company code, the latter can be determined via the plant at the time of each procurement transaction even if the procuring purchasing organization has not been assigned to a company code.A purchasing organization must be assigned to one or more plants. (= Plant-specific purchasing).A purchasing organization can be linked to one or more other purchasing organizations. (= reference purchasing organization) For more on this topic, refer to Assign Purchasing Organization to Reference Purchasing Organization.A purchasing organization can be divided into several purchasing groups that are responsible for different operational areas.Each purchasing organization has its own info records and conditions for pricing. Each purchasing organization has its own vendor master data.Each purchasing organization evaluates its own vendors using MM Vendor Evaluation.Authorizations for processing purchasing transactions can be assigned to each purchasing organization.All items of an external purchasing document, that is, request for quotation, purchase order, contract, or scheduling agreement, belong to a purchasing organization.The purchasing organization is the highest level of aggregation (after the organizational unit "client") for purchasing statistics.The purchasing organization serves as the selection criterion for lists of all purchasing documents.Possible organizational formsYou can organize your purchasing function in the following ways:Corporate-group-wide purchasingCompany-specific purchasingPlant-specific purchasingAll of these forms can co-exist within a single client.Corporate-group-wide purchasing:A purchasing organization is responsible for the purchasing activities of different company codes. In this case, you do not assign a company code to the purchasing organization, but specify the company code concerned for each individual purchasing transaction. You assign plants from different company codes to the purchasing organization.Company-specific purchasing:A purchasing organization is responsible for the purchasing activities of just one company code. In this case, you assign a company code to the purchasing organization. The purchasing organization may procure only for this company code. You assign only plants of the company code concerned to the purchasing organization.Plant-specific purchasing:A purchasing organization is responsible for the purchasing activities of one plant. In this case, you assign the plant and the company code of the plant to the purchasing organization. The purchasing organization may procure for this plant only.ECC 6.0January 2008 SAP AG and The Rushmore Group, LLC 2008*Decentralized purchasingECC 6.0January 2008 SAP AG and The Rushmore Group, LLC 2008*ECC 6.0January 2008 SAP AG and The Rushmore Group, LLC 2008*Centralized purchasingECC 6.0January 2008 SAP AG and The Rushmore Group, LLC 2008*CentralizedWe can set up the purchasing for multiple companies and the plants within them.**here you can see how the POrg, the plants and PGs are linked up responsible, assigned toECC 6.0January 2008 SAP AG and The Rushmore Group, LLC 2008*A purchasing organization can have multiple purchasing groups. For instance, one group could specialize a one type of material procurement while another could special in another. This often take place in industrial fabrication shops that use a lot of steel. One person/group is in charge of procuring and getting delivered the steel rolls, etc.

ECC 6.0January 2008 SAP AG and The Rushmore Group, LLC 2008*We have been asked over and over to provide how it all fits together. You cantIt really DEPENDS on the organization. IT IS COMPLETELY CONFIGURABLE!In this example the purchasing organization buys for more than one plant

Storage locations can be the same for every plant.

*Here you can see an overview of the hierarchical structure including the objects of the warehouse management

IDES = exemplary company maintained in the SAP system

different Storage locations are assigned to a warehouse number* I will talk about the material master later before you order the material from a vendor you have to plan the quantites you need in each period next, the ... can be mentioned user department ... after you have received the goods, the vendor will make out an invoice and send it to you. Before paying the invoice has to be verified compare with PO, delivery notes etc.*talking of the inter-depENdencies of MM one can say that all of the other modules regularly access data maintained and updated in the module MM

like the material master for example, which is relevant for prod. planning and sales & distrib.also: requirements planning....

*There are two types of basic data in the module MM*different sections******************so far: considered information aboutmaterialvendorsnow: talk about information relating to the combinationERM*the process has the following main steps:*3 possibilities of ordering material**************************