SAP MM Bootcamp

SAP Materials Management (MM)
SAP MM Bootcamp
(Insert session dates here)
DAY 1
Introduction
At the end of the course, participants will be able to:
Explain SAP Materials Management (MM) functionality and how the module integrates with other modules
Describe the MM organization structure, master data, and common business transactions
Perform basic MM business transactions
Perform basic MM configuration
Prepared by : Raj Kumar .A

SAP-MM QM CONSULTANT
Introduction
Ground Rules
Participate - Ask questions!
Learn From Everyones Comments
Please Turn Off Cellular Phones
Honour Time Schedule
Relax and Have Fun!
Introduce Yourself
Name, Operating Group, Location
Your SAP MM Bootcamp Objective/s

Introduction
Reference Materials
SAP Familiarisation Guide
SAP Navigation Assistance
SAP Quick Reference Guide

Provides transaction codes and description
SAP Table Structure Overview

Introduction
Where does the course fit in Delivery Method (ADM) for SAP
https://methodology.accenture.com/finder/Scenarios/homepage/m_accenturedeliverymethods.asp#sap_group.xml
3100 Design Application

Introduction
Basic Procurement
Introduction to SAP
Day 1
, Material Master, Vendor Master
Day 1
Requisition, Purchasing, Basic configuration, Agreements,

RFQ, Quotation
Day 2
Quota Arrangements, Release Strategies, Service

Procurement
Valuation, Acc. Determination, Inventory Mgmt
Special Procurement
Sum up
Day 3
Day 4
Day 5
Day 5

Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
Basic Procurement Philosophy
09:30 10:00
Procurement in IT Systems
10:00 10:30
BREAK
10:30 10:45
The SAP Requisition to Pay Cycle
10:45 11:00
Introduction to SAP
11:00 11:15
Introduction to SAP / Log On
11:15 11:30
Introduction to IMG
11:30 11:45
SAP Enterprise Structure
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
Master Data Overview
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
Exercise 2.0 (Continued)
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

Introduction To Procurement
Definition
The process of obtaining services, supplies, and equipment from a vendor is called Procurement.
The procurement department or the purchase department within an organization normally manages the majority of purchasing.
Exceptions may lie in large industrial complexes where procurement may also be handled by engineering, or third party outsourced companies.

Introduction to Procurement (Cntd)

For organizations Procurement is the acquisition of goods or services at the
best possible price, in the right quantity, at the right time, in the right place.
The complexity of procurement is trying to get the balance right, for example:
Organizations try to keep inventory levels at a minimum due to the costs

associated with high levels of inventory, but at the same time it is very costly
to stop production due to shortages in raw materials for example.
Getting the lowest price for a product or service is always important, but the
balance between product availability, quality, and vendor relations can be
more important.

The Procurement Lifecycle

In most modern organizations the Procurement lifecycle has the following
steps:
1. Information Gathering:
If the potential customer does not already have an established relationship with sales/
marketing functions of suppliers of needed products and services, it is necessary to
search for suppliers who can satisfy the requirements.
2. Supplier Contact:
When one or more suitable suppliers have been identified, Requests for Quotes (RFQ),
Requests for Proposals (RFP), Requests for Information (RFI) or Requests for Bids
(RFB) may be advertised, or direct contact may be made with the suppliers.
3. Background Review:
References for product/service quality are consulted, and any requirements for followup services including installation, maintenance, and warranty are investigated.
Samples of the products or services being considered may be examined, or trials
undertaken.
The Procurement Lifecycle (Cntd)

4. Negotiation:
Negotiations are undertaken, and price, availability, and customisation possibilities are
established. Delivery schedules are negotiated, and a contract to acquire the products
or services is completed. The contract is a mutually binding legal document.
5. Fulfilment:
Supplier preparation, shipment, delivery, and payment for the products or services are
completed, based on contract terms. Installation and training may also be included.
6. Consumption, Maintenance and Disposal:

During this phase the company evaluates the performance of the products or services
and any accompanying service support, as they are consumed.

The Procurement Lifecycle (Cntd)

7. Renewal:
When the products or services have been consumed and/or disposed of, the contract
expires, or the product or service is to be re-ordered, company experience with the
products or services is reviewed. If the products or services are to be re-ordered, the
company determines whether to consider other suppliers or to continue with the same
supplier.

Basic Procurement Activities

Determination of
Requirement
What Materials or Services are required?
Requisition
The form or electronic transmission used to inform

the purchasing department that purchased items or
services are needed for a business purpose
Purchase Order
When the requisition is approved it becomes a

Purchase Order. A PO typically includes item,
quantity, price, discounts, vendor information, and
ship-to information
Goods Receipt /
Invoice Received
Invoice Verification /
Vendor Payment
The material is received. Condition and quality are

verified / The invoice is received from the vendor.
Reconciliation of the invoice and the purchase

order is accomplished /The Vendor is paid
Direct Vs. Indirect Procurement

Based on the consumption purposes of the acquired goods and services,
procurement activities are often split into two distinct categories. The first
category being direct, production-related procurement and the second being
indirect, non-production-related procurement.
Direct procurement occurs in manufacturing settings only. It encompasses

all items that are part of finished products, such as raw material,
components and parts. Direct procurement, which is the focus in supply
chain management, directly affects the production process of
manufacturing firms.
Indirect procurement activities concern operating resources that a

company purchases to enable its operations. It comprises a wide variety of
goods and services, from standardised low value items like office supplies
and machine lubricants to complex and costly products and services like
heavy equipment and consulting services.
Note: Terms Direct/Indirect procurement are not always used as cited above. However, the above is an industry standard.

Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
09:30 10:00
10:00 10:30
BREAK
10:30 10:45
10:45 11:00
Introduction to SAP
11:00 11:15
11:15 11:30
Introduction to IMG
11:30 11:45
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

General cycle of activities:

Payment
Determinatio
n of
requirement
Invoice
Verification
Goods
Receipt
PO Monitoring

Procurement
Selection of
vendors from
the vendor
database
PO processing
Recapping General cycle of activities:

1. Determination of Requirements
Materials requirements are either identified by users or automatically by the IT system of the organization & passed on to the Purchasing
department via Purchase requisitions.
2. Source Determination
The IT System helps you identify potential sources of supply based on old orders and existing longer-term agreements with the vendor. This
speeds the process of creating requests for quotation (RFQs), which can be sent to vendors.
3. Vendor Selection and Comparison of Quotations

After receiving the Quotations from the invited vendors, the purchasing department compares them and chooses the most appropriate vendor to
complete the order.
4. Purchase Order Processing

The Purchasing system takes up input data from the requisition and the quotation to help the user create a purchase order. As with purchase
requisitions, the user can generate POs or have the system generate them automatically.

Recapping General cycle of activities: (Cntd)

Purchase Order Monitoring
The buyer (or Purchasing Officer) can check the status of the PO i.e. if the goods or invoices have been received. Generally Procurement IT systems can also be
configured to automatically check PO progress and to issue reminders or expediters at predefined intervals.
Goods Receipt
Goods receiving personnel (normally warehouse personnel) can confirm the receipt of goods simply by entering the PO number into the system. By specifying
permissible tolerances, buyers can limit over- and under deliveries of ordered goods.
Invoice Verification
Vendor invoices are checked for accuracy of prices and contents. Buyers can also specify permissible value tolerances for invoices.
Payment Processing
Based on the invoice verification, the Accounts Dept / Accounts Payable normally deals with vendor payments.

Types of Procurement
Procurement for Stock vs. Consumption
External vs. Internal Procurement

Procurement for Stock
A stock material is a material that is kept in stock. These materials are kept in stock once received from the vendor. The stock of this material keeps
on increasing or decreasing based on amount of the quantity received or issued.
To order a material for stock, the material must have a master record in the system.
Procurement for Direct Consumption

When procurement is for direct consumption, the user must specify the consumption purpose. By entering an account assignment (for example, a
cost center).
To order a material for consumption, the material may have a master record in the system.

Procurement for Stock vs. Consumption (Cntd)
Procurement for
Stock
With Mat.Master
Record
Account
Assignment
Automatic
Acc.Assgt
Data from Mat.
Master
Stock Account

Procurement for
Consumption
With Mat.Master
Record
Without Mat.
Master Record
Enter Acc. Ass.

Category
Manual Acc. Assgn

Data Entry Required
Consumption Acc.
Cost Centre
Asset
Procurement for Stock
Material Number is Required
Procurement for Consumption
Material Number can be used,

but is not mandatory
No Account Assignment Category

Account Assignment Category
Posting to Stock Account
Inventory Quantity will be updated
mandatory
Posting to Consumption Account
Inventory Quantity will not be updated

External vs. Internal Procurement
External Procurement
Is the process of procuring goods or services from external vendors.
Internal Procurement
Refers to trade happening between the different entities of the same organization.

External vs. Internal Procurement (Cntd)
There are 3 basic forms of external procurement generally supported by the Purchasing component of IT systems.
One-time purchase orders
Longer-term contracts with the subsequent issue of release orders
Longer-term scheduling agreements and delivery schedules

One-Time Purchase Order
You use one-time orders for materials or services that you order irregularly.
You can reference a purchase requisition, RFQ, or another PO when creating a
one-time order.
Contract and Release Orders

For materials that are being ordered regularly and in large quantities, we can negotiate
a deal with the vendor for pricing or conditions & record then in a contract.
In a contract you also specify the validity date.
Scheduling Agreement
If a material is ordered on a regular basis and is to be delivered according to an exact time schedule, then you set up a scheduling agreement. This method of
procurement is
typically used when Just-in-Time deliveries are required from the vendor (for example, in the automobile industry).

Large corporate organizations may own multiple separate businesses or companies. Each of these companies maintains a complete bookkeeping system with separate Balance
Sheets and Profit & Loss Statements and hence when trade occurs between them it needs to be recorded.
Key activities:
Creating a Purchase Order at the receiving Company
Creating delivery and billing documents at the issuing Company (This is an inter company billing document; Pricing takes place as
normal)
Posting the goods receipt at the receiving Company (The material stock increases and an accounting document gets created)
Posting the invoice receipt at the receiving Company (The invoice is checked with reference to the purchase order)

Sometimes companies also need to record and monitor stock movements between its own entities e.g. production facilities.
Key activities:
Creating a stock transport order in the receiving entity
Generating a delivery document in the delivering entity
Picking the material in the delivering entity
Posting an issuing document in delivering entity
Posting a receipt document in receiving entity

Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
09:30 10:00
10:00 10:30
BREAK
10:30 10:45
10:45 11:00
Introduction to SAP
11:00 11:15
11:15 11:30
Introduction to IMG
11:30 11:45
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
09:30 10:00
10:00 10:30
BREAK
10:30 10:45
10:45 11:00
Introduction to SAP
11:00 11:15
11:15 11:30
Introduction to IMG
11:30 11:45
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

The SAP Requisition to Pay process

Is the process that includes from the requisition determination until the payment of the correspondent invoice. It is comprised by the following SAP
documents:
Module impacted
Req.
Determ.
Purchase
Requisition
PP
Purchase
Order
Goods
Receipt
Invoice
Verification
Payment
Material Management (MM)

Accounts Payable (AP)
General Ledger (GL)
Project System (PS)


Is the process which helps users determine the material/services requirements. Requirements can be based on customer
demand, which drives the production planning process, or requests from within the organization.
Module impacted
Req.
Determ.
Purchase
Requisition
PP
Purchase
Order
Goods
Receipt
Invoice
Verification
Payment

General Ledger (GL)
Project System (PS)


A Purchase Requisition is a request to Purchasing to procure a certain quantity of a material or a service so that it is available at a certain point in
time. It is not essential for creating a PO. It can also be created automatically by running the MRP in the PP module.
Module impacted
Req.
Determ.
Purchase
Requisition
PP
Purchase
Order
Goods
Receipt
Invoice
Verification
Payment

General Ledger (GL)
Project System (PS)


A Purchase Order is a formal request to a vendor to supply or provide goods or services at a certain point in time with a certain quantity, under the
agreed terms and conditions.
Module impacted
Req.
Determ.
Purchase
Requisition
PP
Purchase
Order
Goods
Receipt
Invoice
Verification
Payment

General Ledger (GL)
Project System (PS)


Goods Receipt is the term used to describe an increase in warehouse stock due to receipt of goods from external vendors of from internal stock
transfers.
Module impacted
Req.
Determ.
Purchase
Requisition
PP
Purchase
Order
Goods
Receipt
Invoice
Verification
Payment

General Ledger (GL)
Project System (PS)


Is the verification of the data on the invoice sent by the vendor against the goods receipt and the original purchase order. This
ensures that the goods received match the cost and quantity requirements of the purchase order and the vendors invoice.
Module impacted
Req.
Determ.
Purchase
Requisition
PP
Purchase
Order
Goods
Receipt
Invoice
Verification
Payment

General Ledger (GL)
Project System (PS)


Once the invoice is posted, the payment is made on the basis of the payment terms and conditions defined in the purchase order.
It is processed through Accounts Payable in the FI module.
Module impacted
Req.
Determ.
Purchase
Requisition
PP
Purchase
Order
Goods
Receipt
Invoice
Verification
Payment

General Ledger (GL)
Project System (PS)

Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
09:30 10:00
10:00 10:30
BREAK
10:30 10:45
10:45 11:00
Introduction to SAP
11:00 11:15
11:15 11:30
Introduction to IMG
11:30 11:45
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

Introduction to SAP
SAP stands for Systems, Applications and Products in data processing".
SAP is the worlds third-largest independent software provider.
SAP was founded by 5 former IBM employees in 1972 and head quartered in Walldorf, Germany.
SAP is the global market leader in ERP and in collaborative & inter-enterprise business solutions

Introduction to SAP
The SAP Business suite
mySAP Enterprise resource planning
mySAP Supply chain management
mySAP Customer relationship management
mySAP Product life cycle management
mySAP Supplier relationship management

Introduction to SAP
SAP Industry Solutions

Aerospace & Defense
Automotive
Banking
Defense & Security
Engineering, Construction & Operations
High Tech
Healthcare
Higher Education & Research
Industrial Machinery
Chemicals
Consumer Products
Life Sciences
Higher Education & Research
Industrial Machinery & Components
Life Sciences
Logistics Service Providers
Media
Mill Products
Health Care
High Tech

Introduction to SAP
SAP Industry Solutions (Cntd)

Mining
Oil & Gas
Postal Services
Professional Services
Public Sector
Railways
Retail
Telecommunications
Utilities
Wholesale Distribution

Introduction to SAP
Small and medium business solutions
mySAP all-in-one
SAP business one
New dimension products

Strategic enterprise management
Advanced planner and optimizer
Enterprise buyer profession edition
Business information warehouse
mySAP technology
SAP NetWeaver

Introduction to SAP
SAP R/3 main modules are
Financial Accounting (FI)
Controlling (CO)
Materials Management (MM)
Sales & distribution (SD)
Production Planning and Execution Process (PP)
Logistics execution (LE)
Quality Management (QM)
Project Systems (PS)
Plant Maintenance (PM)
Customer Service (CS)
Human Resources (HR)

Introduction to SAP
SAP Application Modules

SAP has several layers. The BASIS System is the heart of the data operations and should
not be evident to higher level or managerial users. Other customising and
implementation tools exist also. The heart of the system from a managers viewpoint is
the application modules.
SD
Sales &
Distribution
MM
Materials
PP Mgmt.
Production
Planning
FI
Financial
Accounting
CO
Controlling
R/3
TR
Treasury
EC
Enterprise
Controlling
PS
IM
Project Investment
System Management
WF
Workflow
IS
Industry
Solutions
Client / Server
ABAP/4
QM
Quality
ManagePM
ment
Plant
Maintenance
PD
Personnel
Development
PA
Source: SAP AC010: Financial Accounting & Reporting

Personnel
Administration
Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
09:30 10:00
10:00 10:30
BREAK
10:30 10:45
10:45 11:00
Introduction to SAP
11:00 11:15
11:15 11:30
Introduction to IMG
11:30 11:45
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

Introduction to SAP Log On
SAP Logon Screen

SAP Easy Access Screen

SAP Screen layout elements
Menu
Bar
Standard Tool Bar
Title Bar
Application Tool Bar
Command Field

SAP System and Help menu

Function of F1 and F4 field help
F1

F4
SAP Logoff Screen

Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
09:30 10:00
10:00 10:30
BREAK
10:30 10:45
10:45 11:00
Introduction to SAP
11:00 11:15
11:15 11:30
Introduction to IMG
11:30 11:45
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

Introduction to IMG
SAP Implementation Guide

When a client purchases the SAP, it comes in a CD very similar to any software
that we buy off the shelf. When SAP is first installed, SAP comes with some
standard set up. Example of those set up are company code 0001, plant 0001 etc.
These setup do not necessary meet the client requirement.
In the build phase of a project, SAP system is customized according to the
requirement of the client which are identified in the design phase.
In SAP, customizing is performed through the Implementation Guide (IMG).
Note that customizing is different from master data or transactional data.

Introduction to IMG
SAP Configuration Implementation Guide (SPRO)

Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
09:30 10:00
10:00 10:30
BREAK
10:30 10:45
10:45 11:00
Introduction to SAP
11:00 11:15
11:15 11:30
Introduction to IMG
11:30 11:45
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

Organizational levels in a procurement cycle

Client
Compan
y Code
Plant
Storage
Location
Pur Org
Pur
Groups
Client
An independent unit in R/3 system that contains its own set of master data and table contents
It is not a legal entity but is more technical in nature
Company Code
An Independent accounting unit within the client.

Each has its own P&L account and Balance Sheet
Setup is done by the Finance team

Company Code (Cntd)
Company Code setup in SPRO:
Financial Accounting -> Financial Accounting Global Settings -> Company Code -> Enter Global
Parameters (OBY6)
Financial Accounting -> Financial Accounting Global Settings -> Fiscal Year ->
Maintain Fiscal Year Variant (OB29)
Financial Accounting -> Financial Accounting Global Settings -> Fiscal Year -> Assign Company
Code to a Fiscal Year Variant (OB37)

Plant
A unit under the company

All operation within the company take place here (e.g. Manufacturing, Sales, Storage Unit, Administration Building)
It is usually mapped to a physical location even though virtual ones can also exist
Plant setup in SPRO:
Enterprise
Structure -> Definition -> Define, copy, delete, check plant (SPRO)
Enterprise
Structure -> Assignment -> Logistics General -> Assign plant to company
code (OX18)

Storage Location
The storage location is an organizational unit that allows the differentiation of material stocks within a plant.
Physical Inventory is carried out at storage location level.
Storage location codes can be repeated under a different plant
Storage Location setup in SPRO:
Enterprise
Structure -> Definition -> Materials Management -> Maintain Storage Location (OX09)

Purchasing Organization
Responsible organizational unit for procuring materials / services

Procures the material / service for one or more plants within the company
Purchasing Organization setup in SPRO:
Enterprise
Structure -> Definition -> Materials Management -> Maintain purchasing organisation
(OX08)
Enterprise Structure -> Assignment -> Materials Management
Assign purchasing organization to company code (OX01) (optional)
Assign purchasing organization to plant (OX17)

Different forms of purchasing
Centralized purchasing (corporate-wide purchasing)

Purchasing org is not assigned to any company code.
Any plant can purchase through this one purchasing org.
Company-specific purchasing
A purchasing org is assigned to a company code.
Any plant from that company can purchase through this one purchasing org.
Plant-specific purchasing
A purchasing org is assigned to a plant (and not to company code)
One specific plant can purchase through this one specific purchasing org.

Purchasing Groups
The groups which are responsible for day to day buying in the purchasing organization
Purchasing Group setup in SPRO:
Materials
Management -> Purchasing -> Create Purchasing Groups (OME4)


CLIENT
ASPL
ASPL
COMPANY
PLANT
BDC
BDC
PURA
PURA
STORAGE
LOCATION
MDC
MDC
PURCHASE
ORGANIZATION
BDC1
BDC1
Bay11
Bay11
BDC2
BDC2
Bay12
Bay12
Bay21
Bay21
PURB
PURB

Bay22
Bay22
MDC1
MDC1
Bay31
Bay31
MDC2
MDC2
Bay32
Bay32
Bay41
Bay41
PURM
PURM
Bay42
Bay42
REF PURCHASE
ORGANIZATION
Configuration
Define here
Assign here

Configuration
Defining Organizational Elements
Client :
SPRO > IMG > Enterprise Structure > Definition > Financial Accounting > Define Company > New Entries
Company Code :
SPRO > IMG > Enterprise Structure > Definition > Financial Accounting > Edit, Copy, Delete, Check Company Code > Copy, Delete, Check
Company Code
Controlling Area :
SPRO > IMG > Enterprise Structure > Definition > Controlling > Maintain Controlling Area > Maintain Controlling Area

Configuration
Defining Organizational Elements(Cntd)
Plant :
SPRO > IMG > Enterprise Structure > Definition > Logistics General > Define , copy, delete , check plant > copy, delete , check plant
Storage Location :
SPRO > IMG > Enterprise Structure > Definition > Materials Management >
Maintain Storage Loc ( w.r.t plant ) > New Entries
Purchase Organization :
SPRO > IMG > Enterprise Structure > Definition > Materials Management > Maintain Pur. Org >New Entries.

Assigning
SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting > Assign Company Code to Company
SPRO > IMG > Enterprise Structure > Assignment > Controlling> Assign Company Code to Controlling area
SPRO > IMG > Enterprise Structure > Assignment > logistics General > Assign Plant to Company Code
SPRO > IMG > Enterprise Structure > Assignment > Materials Mgmt > Assign P.Org to Co . Code
SPRO > IMG > Enterprise Structure > Assignment > Materials Mgmt > Assign P.Org to Plant
SPRO > IMG > Enterprise Structure > Assignment > Materials Mgmt > Assign Standard P.Org to Plant
SPRO > IMG > Enterprise Structure > Assignment > Materials Mgmt > Assign P.Org to Reference P.Org

Activate Company Code for Materials Management

SPRO > IMG > Logistics General > Material Master > Basic Settings >Maintain Co.Code for Materials Mgmt

Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
09:30 10:00
10:00 10:30
BREAK
10:30 10:45
10:45 11:00
Introduction to SAP
11:00 11:15
11:15 11:30
Introduction to IMG
11:30 11:45
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

Exercise 1.0
Configuration: Display a Company Code

Configuration: Display a Plant
Configuration: Display a Storage Location
Configuration: Display a Purchasing Organization
Configuration: Display an Assignment of Plant to Company Code
Configuration: Display an Assignment of Purchasing Organization to Company Code
Configuration: Display an Assignment of Plant to Purchasing Organization

Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
09:30 10:00
10:00 10:30
BREAK
10:30 10:45
10:45 11:00
Introduction to SAP
11:00 11:15
11:15 11:30
Introduction to IMG
11:30 11:45
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
09:30 10:00
10:00 10:30
BREAK
10:30 10:45
10:45 11:00
Introduction to SAP
11:00 11:15
11:15 11:30
Introduction to IMG
11:30 11:45
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

SAP Master Data Overview

SAP R/3 operates real time, placing the responsibility of data integrity on all users.
Information in SAP is always current
No time lag between data entry and data availability
Reports and data displays available online
Reports can be run in foreground or background
Everyone has a critical role to play in maintaining data integrity


SAP R/3 operates using real time data that can be categorised as master or transactional data.
Master Data
Basic informational data created centrally and used in nearly all applications
For example, a Vendor is data that is used in creating contracts, purchase orders, and payments
Remains constant over time, although some master data may need to be updated
Transactional Data
Data associated with the processing of a business transaction
Specific for each transaction

Types of Master Data in SAP
Vendor Master Data
Unique repository of all the relevant information from the vendors.
Its divided in three categories or views:
General data: contains mostly the legal information from the vendor, for example address, legal
name, ABN number, etc.
Company Code data: contains all the information related to a specific company code. For
example: account information, etc.
Purchasing data: this is maintained for each purchasing Organization. For example the currency,
incoterms, etc.
Purchasing Info Record
This is vendor-specific data on a certain material. For example, delivery time and purchase price.

Types of Master Data in SAP (Cntd)

Material Master Data
It is an enterprises main source of material-specific data. It is used in all areas of logistics in the SAP R/3 system.
Since different user departments within an enterprise work with one material, and each department enters different information relating
to it, the data in a material master record is subdivided according to area of use. Each user department thus has its own view of a
material master record.
The data screens used to process material master records can be subdivided into the following types:
Main data: these are the views for the individual user departments, such as basic data, materials planning, accounting,
sales, purchasing, and so on.
Additional data: these are the views on which you find additional information such as alternative units of measure,
material short descriptions, and consumption values. Purchasing data: this is maintained for each purchasing
organization. For example the currency, incoterms, etc.


When you create a purchasing document, SAP R/3 supports you with the data entry by providing you with the default values taken
from existing master records.
PO
Header
Vendor X
Items
10 Material A
20 Material B
30
Material
Master
Data
Vendor
Master
Data
Purchasing
Info
Record

Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
09:30 10:00
10:00 10:30
BREAK
10:30 10:45
10:45 11:00
Introduction to SAP
11:00 11:15
11:15 11:30
Introduction to IMG
11:30 11:45
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

Material Master
What is Material Master ?

How is the Material master used in all the departments ?
How is it useful in creating Purchase Orders?

Material Master
Introduction
The material master record contains the information on all the materials that
a company procures or produces, stores or sells. The material master record
is a companys main source of material specific data. It is used by all
components in the R/3 logistics system.
Basic data
Purchasing
Materials planning
S&D
Stocks in Plant/
stor Loc
Work scheduling
Accounting
Material
Master
Record
Quality
management
Storage
Forecasting
Warehouse Mgmt
Classification

Material Master
Introduction (Contd)
Integration of all material data in a single database, prevents the problem of data redundancy. Data contained in material master records is required for many
functions within the R/3 logistics system, for example:
Purchasing data for ordering
Inventory management data for posting a goods movements and managing physical inventory
Accounting data for material valuation
MRP data for material requirements planning
Since the material master is used and maintained by different user departments, the material master is subdivided according to area of use, and thus each user
department in a company has its own view of a material master record.

Material Master
Introduction (Cntd)
Some material views are valid for all organisational levels, while some are valid only for certain levels.
Data at client level is data valid for the whole enterprise (e.g. material number, material group, unit of measure, )
Data at plant level is valid within a plant and all storage locations belonging to that plant (e.g. purchasing data, forecasting data, work
scheduling data, )
Data at storage location level is only valid for a particular storage location (e.g. storage bin description, picking area, )

Material Master
Material Master Record: Screens

When creating or editing a material master data, the user goes through a number of screens.
In the initial screen the user enters the material number, industry sector and material type.
In the second screen the user specifies the user department views to be processed.
The third screen prompts the user for organisational data.
Material data is then entered in the data screens.
Note: Screen sequence can be changed.
Material
(Industry sector)
(Material type)
User department
views
Basic Data
Purchasing
Accounting

Organizational
levels
Plant
Sloc
Data screens
Material Master
Initial Screen
The Industry Sector and Material Type fields on the initial screen are mainly control
fields i.e. they control the screen sequence, views and fields in the data screens of the
material master record.
A number of different Industry Sectors and Material Types exist in standard SAP R/3,
when companies need more they can define these in Customising according to their
own requirements.
Material Types
Industry Sectors

Material Master
Initial Screen
Material Type
Materials with the same basic attributes are grouped together and assigned to a material type. This allows the organisation to manage different materials in a
uniform manner in accordance with the company's requirements.
Material Type
Control Function
Number assignment
Raw materials
Procurement type
Semi-finished products
Control
User departments
Field selection
Finished products
Account determination
..............

Material Master
Initial Screen
Material Type (Cntd)
Example:
Control Function
Material Type A
Material Type B
Number assignment
Internal Number Assignment (i.e. System)
Internal or external number assignment (i.e. System or

user)
Number Range Interval
1000000000 - 1100000000
2000000000 2100000000
Basic Data 1
Basic Data 1
Basic Data 2
Basic Data 2
Purchasing
Accounting 1
Warehouse Management 1
Accounting 2
Warehouse Management 2
Forecasting
Which screens are displayed and in which order
Procurement type

Produced in-house only
Can be produced in-house or

procured externally
Material Master
Initial Screen
Material Type (Cntd)
Along with the plant, the material type determines a material's inventory management requirement; that is, whether the system updates quantity changes in the
material master record or updates changes in value in the stock accounts in Financial Accounting.
The material type also determines which accounts are posted when a material is posted to stock or leaves the warehouse.

Material Master
Initial Screen
Industry Sector
Selection Screen
Chemical Industry
Control
Field selection
Pharmaceutical Ind.
Like material type, the industry sector has a control function in SAP R/3
When you create a material master record, the industry sector defines:
which screens are displayed and in which order

which industry specific fields are displayed in each screen
In customizing , you can define new industry sectors and maintain field reference for field selection control according to your company- specific requirements.
The Industry sector assigned to a material cannot be changed later.

Material Master
User Departments Views - Main Data

Basic Data
Classification
Accounting
Costing
Forecasting
Materials Requirement Planning (MRP)
Purchasing
Stocks, Plant and Storage Location
Sales
Production Resources/Tools
Quality Management
Storage
Work Scheduling

Material Master
User Departments Views - Main Data (Cntd)

Basic Data:
On this data screen, the user enters data that is also used by other user departments
Classification:
Classes allow companies to classify materials with the same characteristics. A material
can be assigned to one or more classes. Classification data is valid for the whole
company.
Accounting:
Besides other accounting data, users normally enter data relevant to valuation in the
current period here, and companies can manage accounting data on company code
level or plant level.
Costing:
Besides costing data, users can also define valuation data on this screen. This data is
identical with that on the Accounting screen. In most cases, it will already exist on the
Costing screen because it has already been entered on the Accounting screen. If it is
entered on the Costing screen first, it will appear on the Accounting screen as default
values that can be overwritten. Costing data is managed at plant level.
Material Master

Forecasting:
On the Forecasting screen, users have the following options:
Users can access the screens on which consumption values and forecast values
are entered as a basis for the initial calculations.
Users can directly execute an individual forecast for a material. Starting from the
maintained forecast parameters, users can simulate the forecast in several dialog
steps.
The forecast values are updated only when the material master record is saved. The
MRP parameters Reorder point and Safety stock, which are based on the forecast, are
adjusted dynamically at the same time.
Forecasting data is maintained on a plant level.
Materials Requirement Planning (MRP):

MRP is planned at plant level, however if users need to enter data specific to a storage
location, they must also specify the storage location concerned. You must specify a
storage location if you want a material to be included in storage location MRP. Storage
locations are considered as independent units for MRP purposes.
Material Master

Purchasing:
Not all purchasing data is plant-specific. As a result, the data displayed depends on
whether the user enters a plant or not.
Stocks, Plant and Storage Location:
After material master record has been created, users can select the following data
screens in the Select View(s) dialog box for displaying the stocks held at a particular
plant or storage location:
Plant stock
Storage location stock
Other User Department Views:
Sales
Production Resources/Tools
Quality Management
Storage
Work Scheduling
Material Master

Basic Data
Important Fields:
Material Description:
Text containing up to 40 characters that describes
the material in more detail.
Base Unit of Measure:

Unit of measure in which stocks of the material are
managed. You define the base unit of measure and
also alternative units of measure and their
conversion factors in the material master record.
Material Group:
Key used to group together several materials or
services with the same attributes, and to assign
them to a particular material group.

Material Master

Accounting
Important Fields:
Valuation Category
Determines whether stocks of the material are
valuated together or separately. Split valuation
allows companies to valuate different stocks of the
same material separately. In the case of split
valuation, this indicator also determines which
valuation types are allowed, that is, the criteria by
which stocks can be valuated.
Split valuation
allowed
Material A
Valuation Category
Quality
Origin

Valuation Types
Stock x Price = Value
High Quality
1UOM x $100 = $100
Average Quality
2UOM x $90 = $180
Low Quality
1UOM x $75 = $75
Material Master

Accounting (Cntd)
Important Fields:
Valuation Class
Material Type
Valuation Class
Valuation class is used to combine the
materials for assigning G/L accounts, so
that companies do not have to manage a
separate stock account for each material.
The valuation class allowed for a material
depends on the material type and can be
configured in customizing.
Price Control
Indicates the price control used to valuate the
stock of a material. The following options exist:
Standard price
Moving average price
Valuation will be revisited in more detail on Day 4 of the boot
camp.

Valuation Class 1
300000
Valuation Class 2
Accounting 1
Valuation class
300100
Material Master
Price Control
Material valuation
Price control
( In material master )
S
Standard price
V
Moving average Price
Material Master

Purchasing
Important Fields:
Batch Management
Indicator specifies whether the material is managed
in batches.
Automatic PO
Indicator specifying whether purchase orders are
generated automatically when requisitions are
converted.
Note: The indicator "Automatic POs allowed" must
also be set in the master record of the vendor from
whom the material is ordered.
Purchasing Value Key

Key defining the reminder days and tolerance limits
valid, as well as the shipping instructions and order
acknowledgment requirement of the material for
Purchasing.
Material Master

Purchasing (Cntd)
Important Fields:
Quota Arrangement Usage
Is field controls how the total order quantity is
calculated in the quota arrangement, and thus
which source of supply is determined for the
material at a particular point in time.
(Quota Arrangement will be discussed in detail on day 3 of boot camp)
Source List Requirement

Specifies whether the source list (List of available
sources of supply for a material, indicating the
periods during which procurement from such
sources is possible) must have been maintained in
the case of external procurement for a certain
plant.

Material Master
User Departments Views - Additional Data

Data screen that can be accessed from any view in a material master record by
choosing
in the standard material master

Material Master
User Departments Views - Additional Data (Cntd)

Additional data screens are:
Descriptions
Companies can enter a description for a material master in different languages. However, only one
description per language is allowed.
Unit of Measure
Multiple units of measures can be entered for a material master, however a base unit of measure
has to be specified (stockkeeping unit )and a conversion factor to that unit of measure must also
be specified.
Base Unit of Measure = Piece
4
Order UOM = Box

12
Sales UOM = Carton
Material Master

Additional EANs
An International Article Number (EAN) (or Universal Product Code (UPC) in the USA) is an
internationally standardized number uniquely identifying a material. It always refers to a specific
unit of measure or type of packaging such as a pack of ten pieces or a box. For each unit of
measure defined in a material master record, you can assign one or more EANs and specify
packaging data (such as dimensions, volume, and gross weight).
Document Management
A material may have various documents such as drawings and photographs assigned to it. The
system differentiates between these documents by means of the document type. If the company
uses SAPs document management system, you can manage documents and assign existing
documents to a material in the material master record. Document data is managed at client level.

Material Master

Basic Data Texts, Inspection Texts, Internal Comments
Text are stored at client level, and can be entered in many languages though only one text is
allowed per language.
Basic data text

This text can be used as per companys requirement, for example, to store additional, general
information on the material.
Inspection text
This text can be used to stipulate rules on the procedure to be followed for inspecting a
material, or any special points to be observed.
Internal comment
This text can be used as per companys requirement, for example, to store any specific points
to be taken into consideration with regard to the material.

Material Master
Extending Material Master Record

If one user department has already stored data on a material in a material master record, and
another user department wants to enter data on the same material, there is no need to create
another material master record. Instead, the material master record is extended to include the
information relevant to the user department.
A material master record is also extended if the same user department wants it to include data for
other organizational levels.
Extend to different
Extend Views
e.g. Accounting
Org. levels
e.g. Plant 1200
Extend with
Material A
Material A
Purchasing
Plant 1000
Purchasing
Plant 1000
Accounting
Plant 1000
Material A
Purchasing
Accounting
Plant 1000
Plant 1000
Purchasing
Plant 1200
Accounting
Plant 1200

Material Master
System Walkthrough
Transaction : Create a material master

Material Master
Initial Screen

Material Master
Selective views for creating Material Master

Material Master
Maintain data in Basic data1 view

Material Master
Maintain data in Purchasing view

Material Master
Maintain data in Accounting 1 view

Material Master
Customizing Settings for Material Master Introduction

What is customizing settings for material master?
How is it useful for end users?
How does it satisfy the business requirement of an organisation?

Material Master
Customizing Settings for Material Master Concept

Customizing settings for material master, we can customize fields according to the business requirements. Most cases standard SAP providing is enough, but
some case you need to customize( i.e. your own industry sector, material type, no ranges, ).
We can restrict the material number length
When ever you are creating a Material , if u select you select your own material type and industry sector, it will display the selective views required views for our
material( i.e., what we have customized )

Material Master
System Walkthrough
Configuration: Create a purchasing value key

Configuration: Create a purchasing group
Configuration: Define material number length
Configuration: Create an industry sector
Configuration: Create a material type
Configuration: Maintain number ranges
Configuration: Define screen sequence

Material Master
Create Purchasing value key

Material Master
Create Purchasing group

Material Master
Material number length Material
Demo1_Cutomizing settings for Material Master

Material Master
Create an Industry Sector

Material Master
Create a Material Type

Material Master
Maintain Number Ranges

Material Master
Copy the standard screen sequence to own

Material Master
Assign the screen sequences to material type and industry sector

Material Master
Important T Codes in Material Master

MM01
Create Material Master
MM02
Change Material Master
MM03
Display Material Master
MM17
Mass Maintenance
MMAM
Change Material Type
MM11
Schedule creation of Material Master
MM50
Extend the material view(s)
Once material masters are created from one plant same can be extended to other plants
using TCode MM01.

Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
09:30 10:00
10:00 10:30
BREAK
10:30 10:45
10:45 11:00
Introduction to SAP
11:00 11:15
11:15 11:30
Introduction to IMG
11:30 11:45
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

Material Master
Exercise 2.0
Note that the exercises are divided into configuration and transaction/master data
related. Each exercise are identified as such on the left side of the colon.
Configuration: Create purchasing group

Configuration: Create Material Type
Transaction: Create material master

Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
09:30 10:00
10:00 10:30
BREAK
10:30 10:45
10:45 11:00
Introduction to SAP
11:00 11:15
11:15 11:30
Introduction to IMG
11:30 11:45
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
09:30 10:00
10:00 10:30
BREAK
10:30 10:45
10:45 11:00
Introduction to SAP
11:00 11:15
11:15 11:30
Introduction to IMG
11:30 11:45
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
09:30 10:00
10:00 10:30
BREAK
10:30 10:45
10:45 11:00
Introduction to SAP
11:00 11:15
11:15 11:30
Introduction to IMG
11:30 11:45
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

Vendor Master
What is meant by vendor master ?
How is it useful in purchasing?
How is the vendor master record maintained?

Vendor Master
Introduction
The Vendor Master Record contains information like vendors name, address on all the organisations vendors. Data in the vendor
master record is divided into three categories:
Client
General data
General data is data valid at client level
and hence available throughout the
organisation. e.g. Vendor address, bank
details,
Accounting data
Accounting data is maintained at company
code level and is valid for all the plants
belonging to the company code. e.g.
Reconciliation account, Payment methods,
Purchasing data
Purchasing data is maintained at the
purchasing organisation level. e.g.
Purchase order currency, Incoterms,
Ge
ner
al
Da t
a
Company Code
Accounting Data
Pur. Org.
as
h
c
r
Pu
D
ing
ata
Vendor
Master
Record
Vendor Master
Creating a Vendor Master record
Initial Screen
When creating a vendor master record, you must specify an account group. The account group has control function in SAP R/3. The Account
Group controls:
The type of number assignment.

The number range
Whether or not a one time vendor is involved.
Which fields are displayed on the respective screens and whether entry in these fields is mandatory or optional.

Vendor Master
Creating a Vendor Master record (Cntd)
Initial Screen
Although the account group is the only mandatory field on this screen, the Company code and Purch. Organisation fields will determine the screens
that the user will be able to access i.e. at which organisational level the vendor master record is being created.
Account Group

Acct. Group & CoCode
Acct. Group & CoCode & Pur. Org
Vendor Master
General Data
General Data in a Vendor Master record is divided into 3 sub categories:

Vendor Master
Accounting Data
Accounting Data in a Vendor Master record is divided into 4 sub categories and is usually
maintained by the accounting department :

Vendor Master
Purchasing Organisation Data
Purchasing Data
Purchasing Data in a Vendor Master record is divided into 2 sub categories:
Terms of Payment: Defines cash discounts and payment

periods.
Incoterms: Specify certain internationally recognised procedures
that the shipper and the receiving party must follow to complete a
shipping transaction.
The purchasing organisation salesperson and contact number at

vendor office.

Vendor Master
Purchasing Data (Cntd)
Auto PO: Indicator specifying whether purchase orders are
generated automatically when requisitions are converted.
Acknowledgment reqd: Determines whether the purchasing
document is to be acknowledged by the vendor.
ABC Indicator: Serves to assign the vendor to one of the categories
A, B or C, according to relevance to organisation.
Purchasing Group: The purchasing group is internally responsible

for the procurement of a material/service and as a rule the principal
channel for a company's dealings with its vendors. A purchasing
group can be an individual or a group of individuals.
Planned deliv. time: Number of calendar days needed to obtain the
material or service from the vendor.

Vendor Master
Partner Function
A vendor can take up different roles depending upon the requirement. these roles are called Partner roles or Partner Function. Some of these roles are given below:
Ordering address
Supplier of goods
Invoice present by
Alternative Payee

Vendor Master
System Walkthrough
Configuration: Define Account group
Configuration: Define Number Ranges
Configuration: Assign number ranges to account group
Configuration: Define the term of payment
Configuration: Define the Partner function
Configuration: Define the Partner schemas
Transaction: Create vendor master
Transaction: Change vendor master
Transaction: Display vendor master

Vendor Master
Create an account group

Vendor Master

Vendor Master

Vendor Master

Vendor Master
Define number ranges

Vendor Master
Assign vendor Account group to number ranges.

Vendor Master
Define Terms of Payment

Vendor Master
Define Partner Function.

Vendor Master
Define partner schema

Vendor Master
Define Partner Function in schema.

Vendor Master
Create a New Vendor Master.

Vendor Master
Change a Vendor Master.

Vendor Master
Display a Vendor Master.

Agenda Day 1
TOPIC
TIME
Course Introduction
09:00 09:30
09:30 10:00
10:00 10:30
BREAK
10:30 10:45
10:45 11:00
Introduction to SAP
11:00 11:15
11:15 11:30
Introduction to IMG
11:30 11:45
11:45 12:15
Exercise 1.0
12:15 12:30
LUNCH
12:30 13:15
13:15 13:45
Master Data
13:45 14:45
Exercise 2.0
14:45 15:15
BREAK
15:15 15:30
15:30 15:45
Vendor Master
15:45 16:45
Exercise 3.0
16:45 17:30

Vendor Master
Exercise 3.0
Configuration: Create vendor account group

Configuration: Assign account group to number ranges
Transaction: Create vendor master


SAP MM Bootcamp

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

SAP MM Bootcamp

Uploaded by

Copyright:

Available Formats

SAP Materials Management (MM)

Prepared by : Raj Kumar .A

Prepared by : Raj Kumar .A

SAP Quick Reference Guide

SAP Table Structure Overview

Prepared by : Raj Kumar .A

3100 Design Application

Prepared by : Raj Kumar .A

Requisition, Purchasing, Basic configuration, Agreements,

Quota Arrangements, Release Strategies, Service

Prepared by : Raj Kumar .A

Basic Procurement Philosophy

The SAP Requisition to Pay Cycle

Introduction to SAP / Log On

SAP Enterprise Structure

Master Data Overview

Exercise 2.0 (Continued)

Prepared by : Raj Kumar .A

Basic Procurement Philosophy

Prepared by : Raj Kumar .A

Basic Procurement Philosophy

Introduction to Procurement (Cntd)

Organizations try to keep inventory levels at a minimum due to the costs

Prepared by : Raj Kumar .A

Basic Procurement Philosophy

The Procurement Lifecycle

Basic Procurement Philosophy

The Procurement Lifecycle (Cntd)

6. Consumption, Maintenance and Disposal:

Prepared by : Raj Kumar .A

Basic Procurement Philosophy

The Procurement Lifecycle (Cntd)

Prepared by : Raj Kumar .A

Basic Procurement Philosophy

Basic Procurement Activities

What Materials or Services are required?

The form or electronic transmission used to inform

When the requisition is approved it becomes a

The material is received. Condition and quality are

Reconciliation of the invoice and the purchase

Basic Procurement Philosophy

Direct Vs. Indirect Procurement

Direct procurement occurs in manufacturing settings only. It encompasses

Indirect procurement activities concern operating resources that a

Prepared by : Raj Kumar .A

Basic Procurement Philosophy

The SAP Requisition to Pay Cycle

Introduction to SAP / Log On

SAP Enterprise Structure

Master Data Overview

Exercise 2.0 (Continued)

Prepared by : Raj Kumar .A

General cycle of activities:

Prepared by : Raj Kumar .A

Recapping General cycle of activities:

3. Vendor Selection and Comparison of Quotations

4. Purchase Order Processing

Prepared by : Raj Kumar .A

Recapping General cycle of activities: (Cntd)

Prepared by : Raj Kumar .A

Prepared by : Raj Kumar .A

Procurement for Direct Consumption

Prepared by : Raj Kumar .A

Prepared by : Raj Kumar .A