1) Organizational structure

Addition 1: Client - The client is a unit within an SAP ERP system that is self-contained both
in legal and organizational terms, and in terms of data, with separate master records and an
independent set of tables. From a business viewpoint, the client represents a corporate group, for
example. The client is the highest hierarchical level in the SAP ERP system. Specifications or
data that you make and enter at this level apply to all.
Addition 2: Company code - A company code is the smallest organizational unit of external
accounting for which a complete, self-contained bookkeeping system can be replicated. A
company code represents an independent unit producing its own balance sheet, for example, a
company within a corporate group (client).
Addition 3: Plant - The plant is an organizational unit within logistics that subdivides
an enterprise from the viewpoints of production, procurement, and materials planning.
Addition 4: Storage Location - The storage location is an organizational unit that facilitates
the differentiation of stocks of materials within a plant. Inventory management on a quantity
basis is carried out in the plant at storage-location level. The physical inventory is also carried

out at this level. A storage location is defined by means of a four-character alphanumeric key that
is unique in the plant.
Addition 5: The valuation area - is the organizational level at which material quantities and
values are managed. It is essential for product costing that a valuation area exists for each
plant. Within each valuation level, you can differentiate between values and quantities for
valuation (in-house production and external procurement) by using different valuation types. In
Customizing for materials management (define valuation type), balance sheet valuation is set up
at company-code or valuation-area level. Selection of valuation-area level automatically causes
the creation of a valuation area for each plant. To use product costing and order
costing, inventory must be valuated at plant level.
2) Plant
Definition: The plant is a logistics-based organizational element that is used by all the logistics
modules. The plant is assigned to a company code, and a company code may have many plants
assigned to it. In production planning, the main organizational element is the plant. A plant is
typically configured in conjunction with the company code and valuation area due to tax rules
and regulations
Additional 1: A plant is a place where goods and services are:

Produced;

Stored;

Procured;

Consumed;

Distributed.

Additional 2: Examples of plants are:

Factories

Central warehouses

Corporate headquarters

Sales offices

Additional 3: Once a plant is configured, it must be assigned to several other

organizational elements to assure cross-functional integrations. Here is an example of where
the plant will be assigned:

Company code

Business area

Sales organization

Purchasing organization

Additional 1: Plant & Company Code

A plant is assigned to exactly one company code

Each plant has a unique number, which remains the same across company codes. This
means that plants that belong to different enterprises cannot have the same number

A plant is divided into storage locations that contain physical stock. Each storage location
is assigned to exactly one plant

Sales organizations are assigned to plants. Each sales organization can be assigned to
several plants (an n:m relationship)

Sales organizations are assigned to plants. Each purchasing organization can be assigned
to several plants (an n:m relationship)

Additional 2: Plant & Valuation areas

3) Purchasing group

Setting: Created in Customizing by choosing Materials

Management Purchasing Create Purchasing Groups.
Definition:

Internally: the purchasing group is responsible for the procurement of a material or class
of materials.

Externally: it is the principal channel for an enterprise's dealings with its vendors.

Additional 1: The purchasing group is not assigned to other units of the enterprise structure in
SAP ERP.
Additional 2: in simple word you can say purchasing org is the purchase department and the
purchasing grp is the grp of peoples with in it ,who takes care for the purchase for diffrent
department

4) Purchasing organization

Definition: An organizational unit subdividing an enterprise according to the requirements of

Purchasing. It procures materials and services, negotiates conditions of purchase with vendors,
and is responsible for such transactions
Additional 1: You can incorporate purchasing into the company structure by assigning
the purchasing organization to a company code and to plants. This means that you can take into
account whether purchasing is organized on a centralized or decentralized basis in your
company. You can have a combination of these two organizational forms. You can assign several
purchasing organizations to one company code. However, a certain purchasing organization can
only belong to one company code. You can decide not to assign the purchasing organization to a
company code (cross-company-code purchasing). There is an m:n
relationship between purchasing organizations and plants. In other words, you can assign several
plants to one purchasing organization, and one plant to several purchasing organizations.
Additional 2:

A purchasing organization can be assigned to several company codes. (= Corporategroup-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)

A purchasing organization can be divided into several purchasing groups that are
responsible for different operational areas.

Links: http://help.sap.com/erp2005_ehp_03/helpdata/EN/ff/515a2849d811d182b80000e829fbfe/
frameset.htm
5) Sales organization

The sales organization is responsible for selling and distributing goods and services. It is liable
for the products sold and responsible for a customer's rights of recourse. The sales organization
can be used to represent a regional, national, or international subdivision of a marketplace in
which products are sold. A sales organization is uniquely assigned to a company code, however a
company code may have more than one sales organization assigned to it. If the Sales
and Distribution module is used, at least one sales organization must be defined. The sales
organization is the highest summation level in sales statistics. Customer master data will be
created for each sales organization. Documents created throughout the Sales and Distribution
process (order, delivery, and billing document) will belong to a sales organization.
A distribution channel is a means through which saleable materials or services reach the
customer. A distribution channel is assigned to a sales organization. A sales organization may
have more than one distribution channel assigned to it. If the Sales and Distribution module is
used, at least one distribution channel must be defined and assigned to a sales organization. A
distribution channel allows customers to be treated differently depending on the channel they are
assigned to. For example, a customer assigned to a wholesale distribution channel may receive
preferred pricing compared to a retail distribution channel customer. A sales organization can
have several divisions assigned to it, but must have at least one division. A division is used to
group materials and services. A division can represent a product group or product line, which
allows:

Restricted price agreements to a certain division

Statistical analysis by division

A sales area is a unique and allowable combination of a sales organization, distribution channel,
and division. Each Sales and Distribution document is assigned to exactly one sales area. This
assignment cannot be changed. A sales area can belong to only one company code. This
relationship is created by the assignment of the sales organization to the company code in
Customizing.
The shipping point is the organizational element that manages your shipping activities. Each
outbound delivery is processed at a shipping point. A shipping point can be a physical location,
for example, a loading dock, a mail room, or a railroad depot. It can also be a logical location,
for example, a group of employees responsible for processing next-day deliveries or less-thantruckload orders. Shipping points are assigned to plants. A shipping point should have
physical proximity to the plant to which it is assigned. More than one shipping point can be
assigned to a plant. Several plants can also have a shared shipping point assigned to them, for
example, several plants in same physical proximity sharing the same railroad depot.
Links: http://help.sap.com/saphelp_470/helpdata/en/ff/515a4249d811d182b80000e829fbfe/cont
ent.htm
6) Master data used in PP:

Material masters

Bills of material

Work centers

Task lists/routings

Cost centers

7) Material master
Additional 1: The person who creates the first view of each material master record must define:

The material number

The industry sector

The material type

The unit of measure

The description

Additional 2: The material type is a configurable item

Additional 3: When you create a material master record, the material type determines:

Which departments can maintain the material master record

Whether the material number is assigned internally or externally

Which number range interval the material number comes from

Which screens appear and in which sequence

Which department-specific data you have to enter

Whether quantity changes in the material master record are updated

Whether value changes to financial accounting stock accounts are updated

Additional 4: The material type determines the procurement type of a material, for example,
whether the material is produced in-house, procured externally, or both
Additional 5: Material numbering is defined at the client level
Additional 6: During configuration, your company can decide how to view material
masters. The material master field has a maximum of 18 characters. You
can configurations template to provide breaks in the material number, for example, 123-456789. In addition, if you do not intend to use all 18 characters from the beginning, you can specify
whether leading zeros are to be displayed.
Additional 7: The engineering workbench (EWB) enables material master records to be created
for new BOM items. The material is usually created immediately. It is generally the case that
BOM maintenance cannot work with material master records that are only planned.
Additional 8: The MRP profile allows users to set default values for MRP data fields and
to determine whether the values can be changed during material master maintenance. If a change
is made to a default value in an MRP profile and the field cannot be changed using material
master maintenance, the system automatically changes the field value in all material masters
linked to that specific MRP profile.
Additional 9: The forecast profile allows users to set default values for forecast data fields and
to determine whether the values can be changed during material master maintenance. If a change
is made to a default value in a forecast profile and the field cannot be changed using material
master maintenance, the system automatically changes the field value in all material masters
linked to that specific forecast profile.
Additional 10: In addition to the MRP profile, users creating MRP views can use and
assign MRP group to the material in the material master (MRP 1 view). The MRP group
is defined in configuration under the MRP section. It is used to apply field values to a large
number of materials. Caution: When using MRP groups, be aware that the field values do
not appear in the material master. This is different from the MRP profile.

8) Material master record configuration

Definition:You can structure the material master according to your company's requirements:

You can remove screens, which are not required, from the screen sequence.

You can create your own screens, by adding or deleting screen modules.

You can influence individual fields in the screen modules.

Each logical screen consists of several related field groups. In ECC these are referred to as
subscreens. The fields assigned to each screen module cannot be changed in Customizing.
In Customizing for the material master, you can:

Create and maintain screen sequences

Maintain logical screens (views)

Maintain the order of logical screens in a screen sequence

Determine which subscreens appear on which logical screens

Assign influencing factors for field selection to a screen sequence

Assign a user or user group to a screen sequence

Preset the default organization level, default industry sector, and logical screens for a user
or group of users

Setting: In Costomizing

Additional 1: Here you can configure for which transaction this settings will be applied

Additional 2: Here you define which user will be assigned to which user group

Additional 3: Here you define material types to ref.material types

Additional 4: Industry sector

Additional 5: Creation of the new material type

Additional 6: Here you define filed selection group and can configure fields of the MM01
(mara-mktx). Then you can assign this field reference to a material type (below)

Additional 7: Material type configuration

Additional 8: Plant specific field-references

Additional 8: Industry-specific field references

Additional 9: Which of the following can be used to influence the screen sequence
and attributes (required, visible, hidden) of the material master record.
Choose the correct answer(s).
A UserID
B Material type
C Plant
D Industry

 E Transaction
Answer: B C D E
Material type, plant, industry, and transaction as well as procurement indicator can all be
influencing factors in controlling the screen sequence and field attributes of a material master
record.
9) Quantity/Value updating of material
Setting:
Definition:
Additional 1: For every new created plant you have to define how the material type is treated for
quantity and value updation. If you create a new plant by copy, then everything should be like in
the copy from plant. so you should check how the material type is setup in your other plants,
instead of looking for other material types in the same plant. if neither quantity nor value has a
flag, then you can only purchase with account assignment. No stock is added to your inventory,
no value for this stock, all costs are posted to expense accounts. if you have only quantity update
ticked, then you manage inventory without value, which is the standard setting for UNBW
material type. Here you order as well with account assignment. The receipt is posted to
inventory, while the value goes directly to cost account. Any goods issue from stock is then
without any further costs. the usual setting is quantity and value update , you manage quantities
with values. only now you can have a price, any movement is valuated and affects financial
accounts. value only is something special for Retail industry solution, it is not used in standard
ERP.
Additional 2: Quantity Updating Specifies that the material is managed on a quantity basis in
the material master record for the relevant valuation area. Value Update: Specifies that the
material is managed on a value basis in the material master record for the valuation area
concerned. The values are updated in the respective G/L accounts at the same time. as you said
at for some material there boxes are checked and for some materials boxes are not selected
the Qty and Value are updated based on valuation area
10) Material valuation area
Definition: Organizational level within Logistics at which the material is valuated. A valuation
area can be one of the following
Additional 1: You conduct a valuation of materials for each material valuation area to determine
valuation prices and values. You may valuate material stocks either at plant or company code
level:

At plant level, one plant corresponds to one material valuation area;

At company code level, one company code corresponds to one material valuation area.
Material stocks within one material valuation area have the same value. If necessary, you may
differentiate the stocks according to material valuation area - valuation type. Material stocks in
different material valuation areas may have different values.
Additional 2: You may valuate material stocks either at plant or company code level. You
define the valuation level at the client level. It then applies to all companies and plants in the
client. (We recommend that you define the valuation area at plant level). It is not possible to
create several valuation areas in one client. You should define the valuation area at plant level if:

You wish to use the application component PP or product costing and order costing;

You are working with a retail system;

You wish to use different values for materials for each plant.

11) Deleting a BOM

Bills of material can be deleted in several ways.
You can delete bills of material using:

The deletion function

Deletion flags

You can:

Delete the entire BOM

Delete individual items

BOMs can be deleted:

Without history

With history using engineering change management

Authorization groups control who can delete a bill of material

Additional 1: Using the delete function, the BOM is removed from the system immediately.
If engineering change management is used, the BOM is deleted on the valid-from date of the
change master record.If you set the deletion indicator in the BOM header, the BOM is deleted
during the next reorganization run.
Additional 2: Deletion at header level removes the entire BOM, whereas deletion at item
level removes only the specified item.
13) Material Master deletion
All records flagged for deletion are deleted during a reorganization run provided they are no longer
being used, for example, as a BOM header. Deletion is carried out in these steps:

1. Material master is flagged for deletion.

2. Material master is selected for a reorganization run.
3. Reorganization run is executed.
12) Area of Validity (BOM)

Definition: The area of validity defines which plants can use a bill of material
Additional 1: You can extend the area of validity by assigning the same bill of
material (with the same internal BOM number) to a material in different plants. If
you do this, note that still only one BOM exists, so any changes you may make will
affect all plants.
Additional 2: There must be a plant view for the BOM header and all the item
materials in each plant that the BOM is assigned to.
Additional 3: Material BOMs can be effective on different organizational levels. A
material BOM can manage data that is directly relevant to production. In this case,
the area of validity is the plant. The plant is a place of work where all the necessary
work scheduling activities are organized, for example:

Planning of material requirements

Creation of routings
In this case, you create a plant-specific BOM. You can also create a group BOM. This is a BOM
without reference to any one plant. The group BOM can be made effective for
individual plants using the plant assignment function.
Additional 4: Plant-specific BOMs are independent of each other and exist
separately in the system (BOM number).

13) BOM recursion

Definition: A BOM is recursive if the product contains a component that has the same
object number as the product. Recursion may be an error, but in some cases it may
be intentional

Additional 1: If you want to create a recursive BOM, set the Recursiveness

allowed indicator in the BOM item.

14) BOM reporting

Definition: The BOM explosion answers the question, what a product consists of.

15)
12) Questions concerning BOM's

Answer

18. Answer A B C D

16. Answer E