Logistics The process of planning, implementing and controlling the efficient, cost e

and related information from point of orgin to point of consumption for the

The logistics function at any company requires the products and services a

Elements of the Supply Chain Customer

Sales
Customer Service
Purchasing
Vendor
Receiving
Quality
Inventory
Production
Shipping

SAP ERP Operations SAP ERP operations functionality is characterized by three areas

1. Procurement and Logistics Execution

2. Product Development and manufacturing

3. Sales and Services

SAP Logistics Components 1. Material Management (MM) - Purchase funtionality, inventory m

2. Sales and Distribution (SD) - Sales functions, pricing, picking, p

3. Quality Management (QM) - Planning and exection of quality ins

4. Plant Maintance (PM) - Company's finished products, planning a

5. Production Planning (PP) - Company's production, Master pro

6. Customer Services (CS) - Company's repair and warranties ser

7. Warehouse Management (WM) - Company's accurately manag

Logistics Functionality Procurement and Logistics Execution - operation is the SAP software h
Warehosue management

Purchasing in SAP

Purchasing The purchasing funtion within the SAP provides a complete procure-to-pay
invoce verification.
 SAP ERP can help your company to maintain catalog content of purchase
material services.

SAP ERP software allows your company to work with vendors with regards
receipt settlement (ERS).

Inventory Management SAP Inventory Management(IM) function in SAP ERP software help your c

The function enables you to record and track the quantity and value of all

Warehouse Management SAP Warehouse Management(WM) functionality helps your company man
picking and order consolidation.

SAP ERP software incorporates the latest technology Radio Frequency (R

Inbound & Outbound Logistics Inbound and outbound moments in SAP ERP helps your company succes

Product Development and SAP ERP software helps your company improve production process, also
Manufaturing

Product Planning SAP functionality provides supports for number of planning procedures, in
Scheduling (MPS), and Material Requirments Planning (MRP)

1. SAP SOP defins what your company will produce in the year ahead how

2. MPS translates your company's business plan development by the SAP

expects to produce and purchase.

3. MRP manages the planning for your company's manufacturing process

delivery to your customer. MRP helps your company to maintain lowest
activities, delivery schedules, and purchasing activities.

Manufacturing Operations SAP software helps your company capture the actual production informati

Plant Maintance All successful manufacturing companies require a successful plant mainta
SAP ERP helps your company design preventative maintance processes t

Quality Management SAP ERP delivers a wide range of integrated QM functionality for cost-effe
SAP ERP supports Six Sigma projects by analyzing current and archived q
QM Function has an audit function that supports a wide range of industry s

Sales and Service The benefit of the SAP ERP Software for your company can be achived w
customer statification.

Sales Order Management The SAP ERP software helps your company improve its management of th
quotations, and order processing.
SAP ERP software can use internet sales software to take advantage of n

Customer Service If you company has products that offer warranties and require servicing fro
those situvations. In additions SAP addresses service contracts, service o

Transportation Manamgement The SAP ERP software incorporates functionality to manage all aspects o
 delivery routes.

Procurement Every company has to produce items, from the raw materials that go into m
help in the manufacture of an item, the equipment that is required to manu

SAP Organization Struture

Company Code The company code is defined in SAP as the smallest organizational unit fo

Plant Plant is manufacturing site where equipment, warehousing and office are l
From logistics view a plant can be defined as a location that holds valuate
The organizational structure with SAP applications allows the plant to be a
Company code can have one or more plant associated with it.

Storage Location A storage location is a section or area within a plant. Its usually defined as

Warehouse A warehouse is part of the SAP warehouse management functionality whic

The warehouse is a defined physical are assigned to a storage location. U
low-level location,which storage bin.
Warehouse is assigned to a storage location or number of storage location

Storage Types A storage type is an area of the warehouse that users can base searches
bulk storage, and high racking area.

Storage Section A storage section is an area of the storage type used to divide the storage
be defined as a storage section.

Storage Bin A number of storage bins can be defined for each storage section. A stora
SAP Delivers Client Client 000 is the SAP reference client, contains tab

Client 001 is delivered as the prepration production

upgrades, client 001 will no longer be id

Client 066 is used by SAP for its SAP EarlyWatch a

SAP Provides this service to the custom

SAP Organization
Structure
 Purchasing Organization
Structure

Purchasing Organization A purchasing organization refers to a group of purchasing activities associ

For example if a company has three plants namely NY, TX, NC there can e
three plants or a purchasing organization at each plant that locally negotia
The number of purchasing organization depends on a several factors. For
then a single purchasing organization may be more suitable,but if the plan
each plant may be more appropriate.

Purchasing across the whole If a customer has a central purchasing department that coordinates purcha
organization can be configured in that manner.

Purchasing at a Company level Some large companies dont have a single bussiness-wide purchasing fun
appropriate for companies with entities in various countries,in which ase a
the purchasing organization is created and assigned for each company co

Purchasing at the Plant level In a enterprise that has companies with large autonomous plant that purch
assigning one purchasing organization to one company isn't appropriate a
the plant.

Purchasing Group Your company can define its purchasing department below the level of pur
group of people dealing with a certain material group of materials purchas

Purchasing Group for Multiple In smaller companies one single purchasing department employee may de
Vendors in a chemical company one purchasing department employee may be resp

Purchase Process SAP Purchasing processes allow the purchasing department to use the be

1. Information Gathering - Purchase department is responsabile for sear

vendors who offer best discounts to ensure that

2. Request for Quatation - If the material cant be procured from contrac

advertises or send potential vendors a requests
The purchasing department evaluates any repl

3. Background review - SAP software has vendor evaluation function tha

4. Negotiation - Price reductions

5. Contract Monitoring - After the contract is signed the purchasing depa

6. Contract Renewal - Purchasing department enters into contract renew

Purchase Requisition The purchase requisition is the procedure by which users can request the
The purchase requisition includes quantity, cost center and purchasing gro
After purchase requisition is created it is converted to a puchase order(P
purchased by the company

Request for Quotation(RFQ) When the purchasing department receives and reviews the purchase requ
offer an RFQ
Many scenarios require the purchasing department to produce RFQ
 1. Material or service has not previously been purchased by the c
2. Previously user materials or services has no valid vendor
3. Material or service requires a new vendor because the previou
4. Material or service requires a new vendor to be found due to n
5. Material or service requires a new vendor to be found due to lo

Purchase Requisition Processing

Quotation The vendor send a quotation to the purchasing department via email, EDI,
Each vendor's quotation is evaluated by the purchasing department to ens
by the stipulation of the RFQ that was sent out.
If the vendor failed to reply in the formate required, this may disqualify the
The purchsing department may enter into negotiations with one or more ve
After the decision is made the details of the contract are entered into the S

Purchase Order Purchase Order is a commercial document issued by the purchasing depa
Purchase Order specifies the material or service required the quantities an
You can create Purchase Order froma purchase requistion that has been e
from a vendor replying to an RFQ.
In addition you can enter a purchase order directly into SAP without a requ
Purchase order can only be given to one vendor via email, fax, mail or ED
Changes to the purchase order such as additiona items or quantities can b
A number of different Purchase order can be created for a variety of situva

Purchase Order Processing

Outline Purchasing Argement An outline purchasing agreement is often referred to as blanket purchase
conditions are agreed upon that covers a number of materials or services

Scheduling Agreement A scheduling agreement is similar to a outline purchase agreement becau

agreed terms and conditions. However a shceduling agreement is used wh

Qunatity Contract In some instances, the purchasing department and the vendor negotiate a
material or services over a given period of time. This is called a quantity co

Qunatity contracs can be used with new vendors when you gurantee a min
staff can assess whether the contract shoule be renewed

Value contract Similar to the quantity contract a value contract is an agreement with a ven
but are based on the value rather than quantity of the materials or services

Account Payable Account Payable can be defined as the money that your company owes to
company's balance sheet as a current liability. When account payable are

Invoice Verification Invoice verification is a part of the accounts payment process where vendo
The verfification of the invoice is importment to both the vendor and the pu
neither part has made an error. The standard methods of invoice verfificat

Three-way Match Invoice verification using a three-way match takes the PO supplied to the v
 to the customer from the vendor. In successful three-way match the quant
via check or bank trasfter at a date defined by a agreement between the c

Evaluated Receipt Settlement Instance of the traditional three-way match some companies are working w
two-way match. This method was developed by General mortors in 1994 a
This processing allows the pruchasing department to electronically match

Inventory Management Inventory management is the process in which a company balances its inv
obtaining and holding inventory

A company manufactures commmercial lawnmowers and each finished pr

day shipping on all orders. To ensure the company
controlling the efficient, cost effective flow and storage of raw materials in process inventory, finished goods
o point of consumption for the purpose of meeting customer requirements.

res the products and services are delivered to the customers efficiency and cost effectively.

acterized by three areas

on

cturing

chase funtionality, inventory movements, account payable, material master

es functions, pricing, picking, packing and shipping

ning and exection of quality inspections of purchased and finished goods

's finished products, planning and execution of preventive maintance on equipment and tools used in production

pany's production, Master production scheduling (MPS), Material requirements planning (MRP), Finished products

any's repair and warranties services

Company's accurately manage inventory and maximize storage capacity.

peration is the SAP software help your company to reduce cost in purchasing, inventory management and

des a complete procure-to-pay process, which include requisitioning, purchase order management and
in catalog content of purchased items from your vendors and enable employee self-service purchasing of

work with vendors with regards to invoice processing and payment using functionality such as evaluated

SAP ERP software help your company reduce costs within the plant.

k the quantity and value of all materials in the plant. (physical inventory)

nality helps your company manage the workload within the warehouse through work load planning, wave

echnology Radio Frequency (RF) and barcode scanning.

P helps your company successfully manage goods receipt and goods issuing processes.

rove production process, also improves in planning and sceduling.

ber of planning procedures, including SAP sales and operations planning (SAP SOP), Master Production,
ts Planning (MRP)

produce in the year ahead how it will be produced and what resources will be needed.

plan development by the SAP SOP function into a production plan. MPS is statement of what the company

pany's manufacturing process and ensure that the materials are avaliable for the production process and
r company to maintain lowest possiable level of inventory as well as plan your company's manufacturing
sing activities.

he actual production information from the orders that are process on the shop floor

quire a successful plant maintance function to ensure the production process in working at maximum capacity
entative maintance processes to keep plan use a high as possible.

d QM functionality for cost-effectively ensuring the quality of your company's products and processess.
nalyzing current and archived quality data.
ports a wide range of industry standards such as ISO-9000, QS-9000, Good Manufacturing practice (GMP)

ur company can be achived with improvements in sales order management, which produces higher levels of

y improve its management of the sales order management process including handling sales inquiries,

oftware to take advantage of new markets and thus increase revenue.

anties and require servicing from your company the SAP ERP software provides functionality to manage
es service contracts, service orders, and warranty management.

nality to manage all aspects of the delivery process, tracking activities, and analyzing the profitabliry of
the raw materials that go into making a component in a finished product to the external services needed to
pment that is required to manufacture items and even buildings to house the manufacturing process.

smallest organizational unit for which a complete self-contained set of accounts can be drawn up.

t, warehousing and office are located.

s a location that holds valuated stock or as an organizational unit that is central to production planning.
cations allows the plant to be assigned to a company code.
associated with it.

a plant. Its usually defined as a specific area where stock is physically kept within a plant.

management functionality which allows the customer to further specify locations within a storage location.
signed to a storage location. Using a warehouse gives a company the ability to track items down to a very

n or number of storage locations in the SAP System.

that users can base searches on. Common storage type is a warehouse can be areas such as cold room,

ype used to divide the storage type further for example if the bulk storage area had two levels each levels could

each storage section. A storage bin is the lowest level of storage in the plant.
P reference client, contains tables with default settings but no master data

ed as the prepration production client. Although initially identical to client 000 after any
client 001 will no longer be identical to client 000.

y SAP for its SAP EarlyWatch alters. This client enables SAP to remotely access the customer system.
ides this service to the customer to improve system performance and for system support.
 of purchasing activities associated with all or a specific part of the enterprise
namely NY, TX, NC there can either be a single purchasing organization that negotiates contracts for all the
each plant that locally negotiates with vendors.
ends on a several factors. For example if the three plants all use the same materials from the same vendor
be more suitable,but if the plants use different materials from local vendor then a purchasing organization for

rtment that coordinates purchasing for all companies within the enterprise then the purchasing organization

bussiness-wide purchasing function and may have centralized purchasing for each company. This many be
arious countries,in which ase an enterprise purchasing department amay not be psssible. In this scenario
assigned for each company code.

e autonomous plant that purchasing decisions may be made at local level. A company may decide that
ne company isn't appropriate and it would be better business decision to assign purchasing organization at

partment below the level of purchasing organization. The purchasing group can be defined as a person or a
ial group of materials purchased throught the purchaing orgnaization.

department employee may deal with a varity of vendors that fall unders a specific area. For example
artment employee may be responsiable for all vendors that supply organic compounds.

asing department to use the best practices that are found in world class purchasing organizations.

rtment is responsabile for searching for suppliers who can satisfy the requirements, gathering information on
r best discounts to ensure that the new material or service is procured at the best possiable price.

cant be procured from contracted vendors or the price and quality arent acceptable, the purchasing department
nd potential vendors a requests for quotataion (RFQ), request for proposals (RFP), request for information(RFI)
department evaluates any reply based on the set of defined crietria to obtain the best product at the best price

vendor evaluation function that uses objective and subjective analysis to help in the evaluation of vendors.

is signed the purchasing department monitors the performance of the vendor based on the terms of the contract.

ment enters into contract renewal negotiations with the vendor.

y which users can request the purchase materials or services that require processing bt the purchasing department
cost center and purchasing group.
nverted to a puchase order(PO) or can be used as the basis for an RFQ if the material or service isn't currently

and reviews the purchase requisition there my be a material or service that requires the purchasing department to

artment to produce RFQ

ously been purchased by the company.
vices has no valid vendor
w vendor because the previous vendor's contract was not renewed.
w vendor to be found due to new government regulation or laws
w vendor to be found due to logistical issue.

ing department via email, EDI, fax or mail.

purchasing department to ensure that it abids by the evaluated by the purchsing department to ensure that it abides
out.
quired, this may disqualify the vendor's bid.
egotiations with one or more vendors before making a decistion on a primary and secondary vendor.
contract are entered into the SAP application so that the information is avaliable when purchase order is created.

ssued by the purchasing department to the vendor.

rvice required the quantities and the negotiated price that the vendor and purchasing department have agreed upon.
hase requistion that has been entered into the SAP System. IT can be created as a direct result of a quotation

directly into SAP without a requisition.

ndor via email, fax, mail or EDI shows a prucahse order that bas been entered into SAP.
itiona items or quantities can be made and communicated to the vendor via either fax or EDI transaction No 860
e created for a variety of situvation that occur within your company
 ferred to as blanket purchase order and is used between a company and a vendor where a set of terms and
umber of materials or services that will be purchased over a period of time.

e purchase agreement because its created between a company and vendor for items over a given period based on a
ceduling agreement is used where the vendor is to supply the items on a given schedule required by the company.

ent and the vendor negotiate an agreement whereby the terms and agreement of the deal are valid from a quantity of
me. This is called a quantity contract and is used when company has a specific requirement that has been identified.

ndors when you gurantee a minimum purchase. When the quantity in the contract has been exceeded the purchasing
e be renewed

act is an agreement with a vendor in which the terms and agreement of the deal are valid for a given peroid of time
tity of the materials or services.

ney that your company owes to vendors for materials or servics purchased on credit. The item appears on your
ty. When account payable are paid off it represents a negative cash flow for the company

payment process where vendors are paid for materials or services that they have provided.
t to both the vendor and the purchaser because it ensures that the quantities are the pricing are correct and that
d methods of invoice verfification is that "Three-way Match".

takes the PO supplied to the vendor,the goods receipt or delivery not supplied by the vendor, and the invoice sent
ful three-way match the quantity and price of the three documents match and the payment to the vendor is sent
by a agreement between the company and vendor.

some companies are working with theoir vendors to allow payment without invoice so they are processing a
d by General mortors in 1994 and is called evaluated recepit settlement (ERS).
rtment to electronically match goods receipt with the Purchase Order and if there is no variance a payment is sent.

ch a company balances its inventory needs and requirements with the need to minimize costs resulting from

nmowers and each finished product takes three days to complete. To be competitive the company guarantees same
mpany
Business Partner A person, organization, group of persons, or group of organizations in which a c

Business partners are legal or natural persons with whom you have a business

Customers and vendors are business partners with whom you have a relationsh

Business partners can be organizations (firms, branch offices), persons, or grou

has a business interest.

A business partner is specified as a person (for example, a private person), gro

for example, department) by means of the business partner category. Thus a bu
is a natural person (private individual), organization (legal person/entity or part o

General Elements General data, such as name, address, and communication data
Identification data, such as industry, identification numbers, and tax numbers
Status data, such as the status of the business relationship

Business Partner can be A Supplier

A Customer
A Vendor
An Agent or Reseller

Types of business partner are defined in the R/3 System

1. Partner type customer A customer is a business partner with whom you exch
Two types of customer are defined in the R/3 System
1.1. Internal Customers
1.2. External Customers

2. Partner type vendor A vendor is a business partner from whom goods and
Two types of vendor are defined in the R/3 System
2.1. Internal Vendors
2.2. External Vendors

3. Other Partner type A contact person is an example of another business p

Contact persons are people in a business partner com

or in person to perform business transactions. You sto
records for business partners.

Examples of Business Partner Type

 Business Partner Master Data
1 Company details including addresses and telephone n
2 Business partner contact persons including telephone
3 Logistic details
4 Tax information
5 Accounting information
6 Payment terms details

Business Partner Master Data Fields Primary Area General

Code Tel1, Tel2, Mobile,

Type Phone, Fax, Email
Name Website
Foreign Name Shipping Type
Group Password
Currency Factoring Indicator
Federal Tax ID Project code
Display Currency Contact Person
Account Balance ID No.2
Deliveries Remarks
Orders Sales Employee/Buyer
Oppertunities Commission
Service Calls BP Channel code
Activity Technician
Related Activity Territory
RFC Language
RUT Active
On Hold
CURP
Agent
VAT Registration No
Representative Name
Type of Industry
Type of Business

Business Partner Functions Business partners have a number of different functions, described

Use partner functions to define the rights and responsibilities of e

When you sell or order goods, for example, your business partne

Customer Partner Function

Sold-to-party Contains data on sales, such
Shitp-to-party Contains data for shipping, s
Bill-to-party Contains the address and da
 Payer Contains data on billing sche

Vendor Partner Functions

Ordering address
Goods supplier
Invoice presented by
Alternative payee

Business Partner Integration A business partner can be a customer and a vendor at the same
if a vendor is also one of your customers. In this case,you must c
business partner

Business Partner Master Data Structure Customer Master Records

Vendor Master Records

Business Partner - Type and Functions

oup of organizations in which a company has a business interest.

with whom you have a business relationship.

with whom you have a relationship involving the transfer of goods and services.

branch offices), persons, or groups of persons or organizations in which your company.

r example, a private person), group or organization (legal person or part of a legal person,
iness partner category. Thus a business partner category denotes whether a business partner
ation (legal person/entity or part of a legal entity, such as a department) , or a group.

mmunication data
on numbers, and tax numbers
s relationship

ness partner with whom you exchange goods and services.

er are defined in the R/3 System
stomers
stomers

ss partner from whom goods and services can be procured

are defined in the R/3 System
dors
ndors

an example of another business partner in the R/3System.

people in a business partner company with whom you are in contact by telephone, mail,
m business transactions. You store detailed information on contact persons in master
partners.
uding addresses and telephone numbers
tact persons including telephone numbers and e-mail addresses

on
s

General Accounting Contact Person Addressess

Tel1, Tel2, Mobile, Consolidating BP Title, Position, Street/P.O Box, Block,

Phone, Fax, Email Payment Consolidation Address, Phone1, Building/Floor/Room,
Website Delivery Consolidation Phone2, Fax, Email, City,Zip code, Country
Shipping Type Control Accounts Pager Country
Password Account Receivable / Payables Remarks1-2 Set as Default
Factoring Indicator Block Dunning letters Password Excise information
Project code Down pmt clearing Acct Place of birth Country, Address Type,
Contact Person Block Dunning letters Date of birth Street No, Fiscal IDs
ID No.2 Dunning level Gender Tax Code
Remarks Dunning Date Profession Federal Tax ID
Sales Employee/Buyer 1099 Form Set as Default
Commission 1099 Box
BP Channel code
Technician
Territory
Language
Active
On Hold
CURP
Agent
VAT Registration No
Representative Name
Type of Industry
Type of Business

er of different functions, described as partner functions, in connection with your company.

he rights and responsibilities of each partner type in a business transaction.

or example, your business partners can assume partner functions such as

Contains data on sales, such as the assignment to a sales office or a valid price list
Contains data for shipping, such as unloading point and goods receiving hours
Contains the address and data on document printing and electronic communication
 Contains data on billing schedules and bank details

tomer and a vendor at the same time if, for example, your customer also supplies goods to you or
stomers. In this case,you must create a customer master record and a vendor master record for the

Customer Master Records

Vendor Master Records

 Payment Terms Payment System Properties Remarks

Payment Terms House Bank (Country, Bank Property Name Text

Interest on Arrears % Account, Branch) Selection Column
Price List DME Identification, Instruction Choose All
Total Discounts % Key Clear Selection
Credit Limit Reference Details
Max. Commitment Payment Block
Dunning Term Single Payment
Bank Country, Account Branch Collection Authorization
Credit Card Type Payment Methods
Credit Card No Set as default
Expiration Date Clear Defaulter
ID Number
Average Delay
Priority
IBAN
Holidays
Payment Dates
Allow Partial Delivery of Sales order
Allow Partial Delivery of per row
AutoCalBankCharges for Incoming
Payment
Closing Date Procedure
Remarks

Text
Customer Master Customer master data is the data you require to conduct business rela
payment.

It also controls how business transactions are posted to a customer ac

whether complete delivery is required and the default delivery plant, is

Customer Master Group Customer master groups data into categories: general data, sales area

General data is relevant for sales and distribution and for accounting. I
It is valid for all organizational units within a client.

Sales area data is relevant for sales and distribution. It is valid for the r

Company code data is relevant for accounting. It is valid for the respec

Customer master includes all data necessary for processing orders, de

Customer master - General data In order to maintain the general data in the customer master that is rel
are grouped on several tab pages.

General data in the customer master includes

1. Address - Name, address, language, ...

2. Control data - Tax information,
3. Payment transactions - Bank details,
4. Marketing - Industry, cust. classification,
5. Unloading points - Goods receiving hours,
6. Export data - Data for export control,
7. Contact persons - Address of business partners,
Customer Master - Sales Data You can maintain the sales area data in various ways, depending on th
channel, division).

Sales area data in the customer master includes

1. Orders - Sales office, currency, sales district, price group,

2. Shipping - Shipping condition, delivering plant, transportat
3. Billing Document - Output tax classification, terms of paym
4. Partner Function - Ship-to party, bill-to party, payer, ...

Partner Functions in Customer When processing a sales order, they are copied as default values into
Master The following obligatory functions are necessary for sales order proces

1. Sold-to party - Places the order.

2. Ship-to party - Receives goods or services.
3. Bill-to party - Receives the invoice for goods or services.
4. Payer - is responsible for paying the invoice.

Customer master - Company code In order to maintain the company code data relevant for accounting in
data Company code data in the customer master includes

1. Account management - Reconciliation account,

2. Payment transactions - Paymt methods, paymt block,
3. Correspondence - Dunning proced., acct. clerk,
4. Insurance - Amount insured,
Custome Master in SD

Address & Communication

re to conduct business relationships with your customers. It includes address data and terms of

re posted to a customer account and how the posted data is processed. Master data, such as
he default delivery plant, is stored in master records.

es: general data, sales area data, and company code data.

bution and for accounting. It is stored centrally (clientspecific), in order to avoid data redundancy.
client.

tribution. It is valid for the respective sales area (salesganization, distribution channel, division).

ng. It is valid for the respective company code.

y for processing orders, deliveries, invoices, and customer payments.

customer master that is relevant for sales and distribution and accounting, the data fields

udes

uage, ...

etails,
ification,
ving hours,
ntrol,
usiness partners,
ous ways, depending on the sales area (sales organization, distribution

ncludes

sales district, price group,

elivering plant, transportation zone,
assification, terms of payment, ...
, bill-to party, payer, ...

pied as default values into the documents.

sary for sales order processing

r.
s or services.
oice for goods or services.
g the invoice.

relevant for accounting in the customer master, the data fields are grouped on several tab pages.
includes

iliation account,
methods, paymt block,
ced., acct. clerk,
Customer master KNA1
Customer / company KNB1
Customer sales data KNVV
Bank details KNBK
Customer hierarchy KNVH
Customer partners KNVP
Shipment data for customer KNVS
Contact persons KNVK
Customer master tax indicator KNVI
 Employee An employee is a term for workers and managers working for a company, organis

Employee Master Data you enter and display information about an employee, su
well as personal and financial information. You can keep track of an employee's p
the employee's previous employment and education

Employee Master Data Fields

General Area Address

Employee Number Work Address (Address Details,

Last Name include zip code, country, state)
First Name Zip Code
Middle Name Zip Code
Job Title Home Address
Position
Department
Branch
Manager
User Code
Sales Employee

Human Resources (HR)

Modules Personnel Administration

Entering Travel Expenses with the Travel Calendar

Single Record Entry of Trip Costs and Transfer of Trip Costs
Complete Process of Trip Costs Accounting
Payroll Accounting and Subsequent Programs
Absence Approval/Rejection

Transaction Code Master Data

PA10 Personnel file

PA20 Display HR Master Data
PA30 Maintain HR Master Data
PA40 Personnel Action
PA41 Change Hiring Data
PA42 Fast Data Entry for Events
PRMD Maintain HR Master Data
PRMF Travel Expenses : Feature TRVFD
PRML Set Country Grouping via Popup
PRMM Personnel Events
PRMO Travel Expenses : Feature TRVCO
PRMP Travel Expenses : Feature TRVPA
PRMS Display HR Master Data
PRMT Update Match code
 PS03 Info type Overview
PS04 Individual Maintenance of Info types

HCM Solution Pre-configured functionality, out-of-the-box

1. The employee portal in SAP ERP
2. The manager portal in SAP ERP
ng for a company, organisation or community.

on about an employee, such as the employees addresses, role within the organization, as
p track of an employee's progress, illnesses, or vacation days, as well as keep a history of

Address Membership Administration Personal

ress (Address Details, Role Start Date Gender

p code, country, state) Set Role as Default Status Date of Birth
Team Termination Country of Birth
Team Role Termination Reason Martial Status
dress Absence No.of Children
Education ID.No
Reviews Citizenship
Previous Employment Passport No
Display Middle Name Passport Expiration Date
Name Positioning (Last name,
First Name)
Display Comma

ion Personnel Planning Incentive Wages

alendar Human Resources Information System Individual Incentive Wages

sfer of Trip Costs Personnel Development Time Tickets in Payroll
Personnel Cost Planning Reassignment to Wage Group and Wage Level
ms

Time Management Payroll

PA51 Display Time Data PC00 Run Payroll

PA53 Display Time Data PC10 Payroll menu USA
PA61 Maintain Time Data PE00 Starts Transactions PE01 PE02 PE03
PA62 List Entry of Additional Data PE01 Schemas
PA63 Maintain Time Data PE02 Calculation Rules
PA64 Calendar Entry PE03 Features
PA70 Fast Data Entry PE04 Create functions and Operations
PA71 Fast Entry of Time Data PE51 HR form editor
PBAB Maintain Vacancy assignments PRCA Payroll Calendar
PT01 Create Work Schedule PRCT Current Settings
PT02 Change Work Schedule PRCU Printing checks USA
PT03 Display Work Schedule PRD1 Create DME
SM31 Maintain Table
SM12 Locked Secessions
TSTC Table Look up
SPRO IMG
SE16 Data Browser (Table Reports)
PP03 PD Tables
PPOME Change Org Unit
PO13 Maintain Positions
PO03 Maintain Jobs
 Finance Remaks Attachments

Salary Remarks Path

Employees Costs File Name
Bank Date
Branch Browse
Branch No Display
Account No Delete

Workflow Time Management Internet Scenarios

Workflow for Travel Management Typical Work Process in Time Management Recruitment via Internet
Application Status in the Internet
Calendar of Events (Web User)
Booked Events
Attendance Cancelling

PE01 PE02 PE03

Operations
Reports)
 Material The material master record contains all information about the materials a compa

The material master database (often referred to simply as the "material master"
contains descriptions of all materials that an enterprise procures, produces, and
inventory levels) for the enterprise.

The integration of all material data in a single materials database eliminates the
Purchasing, but by other applications (such as Inventory Management, Materials

Material Master Record

Accounting Valuation and costing/price calculation inform

Materials Planning & Control Information for material requirements plannin

stock level, planned delivery time, and reorde

Purchasing Data provided by Purchasing for a material. E

over- and underdelivery tolerances, and the o

Engineering Engineering and design data on a material. E

Storage Information relating to the storage/warehousi

packaging dimensions.

Forecasting Information for predicting material requiremen

past consumption/usage.

Sales and Distribution Information for sales orders and pricing. Exam
department responsible for a certain materia

Information Organized Material data is always organized in the same hierarchical fashion

Client - general data General data are details on a material's desig

whether the material is explosive or perishab

Plant Data are the maximum and minimum order q

Storage location Data specific to a storage location. Stock leve

The material master is used by all components in the SAP Logistics System. Th
eliminates redundant data storage.

In the SAP Logistics System, the data contained in the material master is r
In Purchasing for ordering
In Inventory Management for goods movement postings and
In Invoice Verification for posting invoices
In Sales and Distribution for sales order processing
In Production Planning and Control for material requirements

Corporate Structure The material master has a hierarchical structure resembling the organizational s
 Some material data is valid at all organizational levels, while other data is valid o

1 Client
2 Company code
3 Plant
4 Storage location
5 Purchasing organization
6 Sales organization
7 Warehouse number
8 Storage type

Industry Sectors When you create a material master record, you are required to classify the mate
Like material types, industry sectors have control functions in the R/3 System
The standard R/3 System contains the following industry sectors.

1. Plant engineering and construction

2. Chemical industry
3. Mechanical engineering
4. Pharmaceuticals
5. Other Retail sectors

Predefined SAP Industry P For the Pharmaceutical Sector

Sector C For the Chemical Industry Sector
M For the Mechanical Engineering Sector
A For the Plant Engineering and Construction

Material Types Materials with the same basic attributes are grouped together and assigned to a
in accordance with your company's requirements.
 When you create a material master record, the material type you choose de
1 Whether the material is intended for a specific purpose, for
2 Whether the material number can be assigned internally or e
3 The number range from which the material number is taken
4 Which screens appear and in what sequence
5 Which departmental data you may enter
6 What procurement type the material has; that is, whether it is

Together with the plant, the material type determines the material's invento
1 Whether changes in quantity are updated in the material ma
2 Whether changes in value are also updated in the stock acco

Standard Material Types The standard R/3 System comes with the following material types. The ID used
necessary to know this ID, for example, when defining the attributes of material

Additionals (VKHM) Clothes hangers, Care labels,

Advertising media (WERB) Printed mail-order catalogs, Co

Apparel, seasonal (MODE)

Beverages (FGTR)

Competitive products (WETT) Observing and evaluating the a

Configurable materials (KMAT) Automobile can have different

Empties (industry LEER, retail LGUT) Type of returnable transport pa

Finished products (FERT) Finished products are produce

record of this material type doe

Foods excluding perishables (FOOD)

Full products (VOLL) Full products are the counterpa

Intra materials (INTR) Intra materials exist only tempo

KANBAN containers (CONT) KANBAN Container used in the

off parts on the production line

Maintenance assemblies (IBAU) An automobile can be a techni

Manufacturer parts (HERS) Manufacturer parts are materia

to identify the materials

Nonfoods (NOF1) Paper products, Magazines

Nonstock materials (NLAG) Nonstock materials are not hel

Nonvaluated materials (UNBW) Nonvaluated materials are man

Operating supplies (HIBE)

 Packaging materials (VERP) Used to transport goods and c

Perishables (FRIP) Fruit and vegetables, Dairy pro

Pipeline materials (PIPE)

Process materials (PROC)

Product groups (PROD) Product groups aggregate mat

Production resources/tools (FHMI) Jigs and fixtures, Measuring an

Raw materials (ROH) Raw materials are always proc

Semifinished products (HALB) Semifinished products can be

the company.

Services (DIEN) Construction work, Janitorial/cl

Spare parts (ERSA) Spare parts are used to replac

Trading goods (HAWA) Trading goods are always proc

Value-only articles (WERT) A value-only article represents

Creating Material Master You create a material master record in the following cases

1 If no material master record exists for a particular material. In

2 If a material master record exists for a particular material, bu

3 If a material master record exists for a particular material and

appropriate organizational level (for example, if it has been e

User Departments Since different departments in a company work with the same material, but each
master record is subdivided by user department.
 MM as a part of Logistics The SAP Logistics function incorporates a number of distinct areas that togethe

Logistics & Supply Chain Logistics is the management of business ope

the supply chain. The supply chain is a netwo
the sales, delivery and production of a praticu

Management of Supply Chain

Material Flow The material flow decribes the movement fro

Information Flow The information flow includes transmitting ord

customers and vendors viability byusing real-

Financial Flow The financial flow includes the finiancial docu

credit or debit is made between accounts to r
clearing accounts

Accounting Organizational Level

Inventory Valuation The R/3 System allows you to valuate stocks

1 Stock from in-house production
2 Stock obtained from one manu
3 Different batch stocks of a mat

Material Statuses The material status tells you whether a mater

The material can be blocked for use in certain
1 Plant-specific material status
2 Cross-plant material status
The material can be blocked for use in certain
1 Distribution-chain-specific mate
2 Cross-distribution-chain materi

Classification Classes allow you to classify materials with th

is valid for the whole company.

Costing

Forecasting

Consumption Values Consumption values are used as a basis for

1 Total consumption
2 Unplanned consumption

Material Requirements Planning (MRP) Material Requirements Planning (MRP) enab

 MRP calculates gross requirements for the hi
gross requirements at the lowest Bill of Mater
dependent levels might have their own indep

The results of the MRP run are recommenda

existing purchase and production orders. The
Minimum Order Quantity.

Material Master Table

General Material Data MARA

Material Descriptions MAKT

Plant data for Material MARC

Material Valuation MBEW

Storage location data for material MARD

Units of measuremet for material MARM

Sales data for material MVKE

Forcast Parameters MPOP

Planning Data MPGD_MASS

Tax Classification for Material MLAN

Material Data for each Warehouse No MLGN

Material Data for each storage Type MLGT

Transaction Code
Material document
MKPF Material document
MSEG Material document (item level)

Purchasing
EKKO Purchase document
EKPO Purchase document (item level)
EKPV Shipping-Specific Data on Stock Transformat
EKET Delivery schedule
VETVG Delivery Due Index for Stock Transfer
EKES Order Acceptance/Fulfillment Confirmations
EKKN Account assignment in purchasing
EKAN Vendor address purchasing
EKPA Partner functions
EIPO Item export / import data
EINA Purchase info record (main data)
EINE Purchase info record (organisational data)
EORD Source list
 EBAN Purchase requisition
EBKN Purchase Requisition Account Assignment

Master Data in MM The Material Master is the repository of the data used for a material. The materi
material is entered and accessed and it is used throughout the SAP System.

The Material Master transaction allows the users to enter all the information rele

The Material Master is not just one file but a number of tables that contains infor

Many tables are updated when information is entered into the material master tr

The Material Master transaction is structured so that there are entery screen for
there is also an organizational dimensions to data entry.

The material information can be entered at each level of the organization for exa

Material Numbering Transaction Code OMSL

Number Format Ten leading Zeros followed by numbe

Material Number Range Transaction Code MMNR

Material Type A material type is a definition of a group of materials with similar attributes.
A material type must be assigned to each material record entered into the Mater
After material type is created the attributes are defined

Transaction Code OMS2

 After a new material type is configured the valuation areas defined for that mate
The valuation area is the level at which material is valuated. The valuation area
A number of valuation area can be defined for a material type

qty updating This field can specify whether a material is assigned this ma

Value update This field can specify whether a material assigned this mater

Pipe.mand This field can specify whether a material assigned this mater

PipAllowed This field can specify whether a material assigned this mater

Basic Data The basic data screen is the initial screen that is displayed when a material mas
Inforamation across the client such as material decription and basic unit of measure.

1. Material
2. Industry sector
3. Material Type
4. Change number
5. Copy from material

Creating a new material Transaction Code MM01

Basic Data Screem The basic data screen contains the following information

Material Description
Base Unit of Measure
Material Group
Old Material Number
Division
Laboratory/Design Office
Cross-Plant Material Status
Product Hierarchy
General Item Category Group
Dimensions
EAN/UPC
Product/Inspection Memo and industry description
Basic Material
Dangerous Good (DG) Indicator Profile
Environmentally Relevant
Highly Viscous and In Bulk/Liquid
Design Drawing Fields
Cross=Plant Configurable Material
Material Group: Packaging materials

Classification Data Class type

Classes
Characteristics

Purchasing Data The purchasing data is required when the material being entered is assigned to
General Data
Base Unit of Measure
Order Unit
Variable Order Unit
Plant-specific Material Status
Tax indicator for material
Quality for free goods discount
Material Freight Group
Automatic Purchase Order
Batch-Management Requirement Indicator

Purchasing Value key

Deadline Monitoring - Remainders
Deadline Monitoring - Acknowledgement Required
GR/IR Control - Under - Delivery Tolerance
GR/IR Control - Over - Delivery Tolerance
GR/IR Control - Unlimited Over - Delivery Allowed
GR/IR Control - Shipping Instructions
Vendor Evaluation - Minimum Delivery Quantity percentage
Vendor Evaluation - Standardinzing value for delivery time variance
 Other Data / Manufacturer Data
Goods-receipt processing Time in Days
Post of Inspection stock
Critical parts
Source List
Quota Arrangement Usage
Purchase Requisition
Scheduling Agreement
Planned order
MRP
Production order

Manufacturer Parts
Manufacturer Part Number
Manufacturer

Foregin Trade Data

Commodity code/ Import code number for foregin Trade
Export / Import Group
CAS Number for pharamacutical Products
PRODCOM Number for foregin trade
Control Code for consumption taxes in foreign trade

Origin / EU Market Organization / Preference

Country of Orgin
Region of orgin
CAP Product List Number
Preference Status
Vendor Declaration Status

Legal Control
Exemption Certificate/ Certificate number / Issue date
Militarty Goods

Forcasting Data General Data

Forcecast Model
Period Indicator
Fiscal Year Variant
Reference material For consumption
Reference Plant
Date to
Multiplier

Number of Period required

Historical periods
Forecast periods
Number of Periods for Initilization
Fixed Periods
Number of periods per seasonal Cycle

Control Data
Initilization Indicator
Tracking Limit
 Reset Forcast model Automatically
Model selection
Selection procedure
Indicator for parameter optimization
Optimization level
Weighting Group
Correction Factor Indicator
Alpha Factor
Beta Factor
Gamma Factor
Delta Factor

Work Scheduling Data General Data

Production Unit
Production Scheduler
Production Storage Location
Production Scheduling profile

Tolerance Data
Under-Delivery Tolerance
Over-Delivery Tolerance
Unlimited Over-Delivery

In-House Production Time in Days

Step time
Processing time
Base Quntity
Interoperation Time
Move time
Wait time
Queue time
Float before production

Sales Organization Data General Data

Sales unit
Variable Sales Unit not allowed indicator
Cross-Distribution Chain Material Status
Delivering Plan

Tax
Tax category / Tax Classification

Quantity Stipulation
Minimum Order Quantity
Minimum Delivery Quantity
Delivery Unit
Rounding Profile

Grouping Items
Material Statistics Group
Volume Rebate Group
Commission Group
Material Pricing Group
Account Assignment Group
 Material Group

Product Attributes

Sales General Data General Data

Replacement Part
Avaliability Check
Approve batch records required indicator

Shipping Data
Transportation Group
Loding Group
Setup Time
Processing Time /Base Quantity

General Plant Parameter

Negative Stock in plant
Profit Center
Serial Number Profile
Distribution Profile
Level of Explicitness for serial number
 tion about the materials a company procures, manufactures, stores and ships.

simply as the "material master", comprising all the individual material master records stored in the system)
erprise procures, produces, and keeps in stock. It is the central repository of information on materials (such as

aterials database eliminates the problem of data redundancy and permits the data to be used not only by
nventory Management, Materials Planning and Control, Invoice Verification, and so on).

d costing/price calculation information. Examples: Standard price, past and future price, and current valuation.

or material requirements planning MRP & consumption-based planning/inventory control. Examples: Safety
planned delivery time, and reorder level for a material.

d by Purchasing for a material. Examples: Purchasing group (group of buyers) responsible for a material,
derdelivery tolerances, and the order unit.

and design data on a material. Examples: CAD drawings, basic dimensions, and design specifications.

elating to the storage/warehousing of a material. Examples: unit of issue, storage conditions, and
mensions.

or predicting material requirements. Examples: How the material is procured, forecasting period, and
mption/usage.

or sales orders and pricing. Examples: Sales price, minimum order quantity, and the name of the sales
responsible for a certain material.

ierarchical fashion

a are details on a material's design (CAD drawings, for instance) and storage conditions (temperature range,
material is explosive or perishable, and so on).

maximum and minimum order quantities of a material and the reorder point.

to a storage location. Stock levels are an example of the data maintained for each storage location

in the SAP Logistics System. The integration of all material data in a single database object

ned in the material master is required, for example, for the following functions

r goods movement postings and physical inventory

sting invoices
sales order processing
Control for material requirements planning, scheduling, and work scheduling

e resembling the organizational structure of a company.

 levels, while other data is valid only at certain levels. The organizational units are as follows

are required to classify the material according to industry sector and material type.
ol functions in the R/3 System
g industry sectors.

nstruction

tor
ector
ring Sector
nd Construction

uped together and assigned to a material type. This allows you to manage different materials in a uniform manner
ts.
he material type you choose determines
nded for a specific purpose, for example, as a configurable material or process materia
er can be assigned internally or externally
ch the material number is taken
n what sequence
u may enter
material has; that is, whether it is manufactured in-house or procured externally, or both

termines the material's inventory management requirement; that is

y are updated in the material master record
re also updated in the stock accounts in financial accounting

wing material types. The ID used to identify the material type internally appears in parentheses. It is sometimes
efining the attributes of material types in Customizing for the Material Master.

Clothes hangers, Care labels, Services such as pressing clothing for display or arranging it on hangers

Printed mail-order catalogs, Computer catalogs on CD-ROM, Promotional fliers

Observing and evaluating the activities of your competitors is essential for optimum market analysis

Automobile can have different types of paintwork, trim, and engine.

Type of returnable transport packaging generally subject to a deposit, bill of material (BOM)

Finished products are produced in-house. Since they cannot be ordered by Purchasing, a material master
record of this material type does not contain purchasing data.

Full products are the counterpart to empties

Intra materials exist only temporarily between two processing steps

KANBAN Container used in the KANBAN Container bases systems in manufacturing plants for replenishment
off parts on the production line

An automobile can be a technical object, and the engine, gearbox, chassis

Manufacturer parts are materials that can be supplied by different vendors that use different part numbers
to identify the materials

Paper products, Magazines

Nonstock materials are not held in stock because they are consumed immediately.

Nonvaluated materials are managed on a quantity basis, but not by value.

 Used to transport goods and come with the goods free of charge

Fruit and vegetables, Dairy products, Meat

Product groups aggregate materials according to certain freely definable criteria.

Jigs and fixtures, Measuring and test equipment

Raw materials are always procured externally and then processed

Semifinished products can be procured externally and manufactured in-house. They are then processed by
the company.

Construction work, Janitorial/cleaning services, Legal services

Spare parts are used to replace defective parts. They may be kept in stock.

Trading goods are always procured externally and then sold.

A value-only article represents a group of articles whose inventory is not managed on an article basis.

wing cases

exists for a particular material. In this case, you create the material master record.

xists for a particular material, but the master data for your user department is missing.

xists for a particular material and the master data for your user department has been entered, but not at the
evel (for example, if it has been entered for a different plant).

with the same material, but each department uses different information on the material, the data in a material
t.
ber of distinct areas that together follow the moment of mater ianls from manufacturer to consumer

he management of business operations, including the acquisition, storage, transportation, and delivery of goods along
hain. The supply chain is a network of retailers, distributors, transporters, storage, facilities and supliers that participate in
livery and production of a praticular product.

flow decribes the movement from the vendor to the company and then on to the customer (and potentially, customer returns)

ion flow includes transmitting order (EDI, Fax, etc) and updating the status of all deliveries. Companies that can show
nd vendors viability byusing real-time information have a distinct competitive advantage over others

flow includes the finiancial document that are created at each material movement. If a material is valuated then a moment
it is made between accounts to reflect the value moving from for example inventory accounts and accounts payable (AP)
ounts

tem allows you to valuate stocks of a material either together or separately, that is, according to different valuation criteria.
Stock from in-house production has a different valuation price than externally procured stock.
Stock obtained from one manufacturer is valuated at a different price than stock obtained from another manufacturer.
Different batch stocks of a material have different valuation prices.

status tells you whether a material is subject to restrictions, and what they are
can be blocked for use in certain business activities by assigning one or both of the following material statuses to it:
Plant-specific material status
Cross-plant material status
can be blocked for use in certain sales activities by assigning one or both of
Distribution-chain-specific material status
Cross-distribution-chain material status

w you to classify materials with the same characteristics. A material can be assigned to one or more classes. Classification data
e whole company.

n values are used as a basis for forecasting.

Total consumption
Unplanned consumption

uirements Planning (MRP) enables you to plan material requirements for a manufacturing or procurement process.
 tes gross requirements for the highest Bill of Materials level based on sales orders and independent demands. It calculates
ements at the lowest Bill of Materials levels by carrying down net parent demands through the Bill of Materials structure. The
evels might have their own independent demands, such as sales orders and forecasts.

of the MRP run are recommendations that fulfill gross requirements by taking into consideration the existing stock levels and
hase and production orders. The MRP run also takes into account defined planning rules for Order Multiple, Order Interval, and
der Quantity.

MARA

MAKT

MARC

MBEW

MARD

MARM

MVKE

MPOP

MPGD_MASS

MLAN

MLGN

MLGT

ument
ument (item level)

cument
cument (item level)
ecific Data on Stock Transformations
edule
Index for Stock Transfer
tance/Fulfillment Confirmations
gnment in purchasing
ess purchasing
ions
import data
o record (main data)
o record (organisational data)
quisition
equisition Account Assignment

a used for a material. The material master is more than a single file for each material,it is where all information on a
throughout the SAP System.

s to enter all the information relevant to a particular item of material into the correct tables.

mber of tables that contains information that combined reflecte all the information for that material.

ntered into the material master transaction.

o that there are entery screen for different functional information items sucha as purchasing, sales or accounting but
ata entry.

h level of the organization for example at the levels of plant, storage location, or sales organization.

ding Zeros followed by numbers for example 000000000012345678

erials with similar attributes.
rial record entered into the Materil Master
defined

Material Types predefined by SAP

ation areas defined for that material type can also be configured.
is valuated. The valuation area can be defined as being at the plan level or the company code level.
a material type

er a material is assigned this material type can be managed on a quantity bases for this valuation area

er a material assigned this material type can be managed on a value basis for this valuation area.

er a material assigned this material type is subject to mandotory pipeline handling for this valuation area.

er a material assigned this material type is allowed to be subject to piple handling for this valuation area.

s displayed when a material master records is created. The basic data screen contains data that is common
d basic unit of measure.

Material Type

Raw Material (ROH)

Semifinished Material (HALB)
Finished Products (FERT)
Operating Suppliers (HIBE)
Tranding Goods (HAWA)
Nonvaluated Material (UNBW)
Nonstock Material (NLAG)
Packing (VERP)
Empties (LEER)
Service (DIEN)
Configurable masterial (KMAT)
Maintance assembly BAU)
Competitor peoduct (WETT)
Returnable Packaging (LEIH)
ormation

The classification data is used primarily when searching for materials. The characteristics values
entered into the classess for each material can be searched for material with the set
of characteristics.

rial being entered is assigned to a material type that allows purchasing.

The purchasing value key field is configured to allow the entry of the purchasing values
of tolerance limits,reminder days, which are the days elapsed before the vendor
Required is contacted regarding the outstanding purchase orders or similar information by using
ce one entry.
e
y Allowed

uantity percentage
e for delivery time variance
or foregin Trade

ts

oreign trade

r / Issue date
 of goods along
that participate in

ially, customer returns)

that can show

ated then a moment

unts payable (AP)

nt valuation criteria.

er manufacturer.

statuses to it:

asses. Classification data

ent process.
emands. It calculates
aterials structure. The

sting stock levels and

ltiple, Order Interval, and
rmation on a

ccounting but
 Material Type Transaction Code

Raw Material (ROH) MMR1

Semifinished Material (HALB) MMB1
Finished Products (FERT) MMF1
Operating Suppliers (HIBE) MMI1
Tranding Goods (HAWA) MMH1
Nonvaluated Material (UNBW) MMU1
Nonstock Material (NLAG) MMN1
Packing (VERP) MMV1
Empties (LEER) MML1
Service (DIEN) MMS1
Configurable masterial (KMAT) MMK1
Maintance assembly BAU) MMP1
Competitor peoduct (WETT) MMW1
Returnable Packaging (LEIH) MMG1
 Vendor The vendor master database contains information about the
master records. A vendor master record contains the vendor
vendor, Terms of payment, Names of important contact perso

Vendor Master Record Vendor master records contain important data on your vendo
organizational levels (e.g. company code, purchasing organiz

Vendor master record consists of three areas

1. General data Data that applies equally to

language in which you com

2. Company code data Data kept at company cod

3. Purchasing data Data of importance with re

organization level (contact

Purchase Order Processing The Purchase Order Processing process begins with the cre
department. After approval by the purchasing manager, the p
listed on the purchase order, the purchase order process is f
order confirmation which is entered into the system.

Purchasing Process

Procurement in MM 1. Determination of Requirements

2. Source Determination
3. Vendor Selection and Comparison of Quotations
4. Purchase Order Processing
5. Purchase Order Follow-Up
6. Goods Receiving and Inventory Management
7. Invoice Verification

MM Purchasing processes MM Purchasing processes the following types of data

1. Material Master Data
2. Vendor Master Data
3. Purchasing Master Data - Purchasing Info Record,
ntains information about the vendors that supply an enterprise. This information is stored in individual vendor
record contains the vendors name and address, as well as data such as the currency used for ordering from the
es of important contact persons (sales staff).

mportant data on your vendors. You can also store data in the vendor master record that applies to certain specific
any code, purchasing organization, plant) within your enterprise.

f three areas

Data that applies equally to each company code within your enterprise (address, telephone number,
language in which you communicate with your vendor, etc.).

Data kept at company code level (payment transactions, number of control account, etc.).

Data of importance with regard to your enterprises purchasing activities and which is kept at purchasing
organization level (contact person, terms of delivery, etc.).

process begins with the creation of a purchase order from an approved purchase requisition in the purchasing
e purchasing manager, the purchase order is sent to the supplier. If the supplier can deliver the goods exactly as
purchase order process is finished. If there is a variance from the purchase order, then the suppliers sends an
ed into the system.

ison of Quotations

ry Management

ollowing types of data

a - Purchasing Info Record, Source List, Quota Arrangement