Materials Management with SAP S/4HANA
Business Processes and Configuration
1st Edition
Published on 25. December 2018
Book
Hardback
946 pages
978-1-4932-1741-0 (ISBN)
Description
Materials management has transitioned to SAP S/4HANA-let us help you do the same! Whether your focus is on materials planning, procurement, or inventory, this guide will teach you to configure and manage your critical processes in SAP S/4HANA. Start by creating your organizational structure and defining business partners and material master data. Then get step-by-step instructions for defining the processes you need, from creating purchase orders and receiving goods to running MRP and using batch management. The new MM is here!
Material master data
Business partner master data
Batch management
Purchasing
Quotation management
Material requirements planning (MRP)
Inventory management
Goods issue/goods receipt (GI/GR)
Invoicing
Valuation
Document management
Reporting
More details
Other editions
New editions
Jawad Akhtar | Martin Murray
Materials Management with SAP S/4HANA
Business Processes and Configuration
Book
07/2024
3rd Edition
SAP PRESS
€89.95
Available immediately
Jawad Akhtar | Martin Murray
Materials Management with SAP S/4HANA
Business Processes and Configuration
Book
08/2020
2nd Edition
SAP PRESS
€89.95
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Persons
Author
Jawad Akhtar is an SAP logistics and supply chain management expert with a focus on business sales and delivery. He earned his chemical engineering degree from Missouri University of Science and Technology in the United States. He has 20 years of professional experience, 14 of which have been spent working with SAP systems. He has experience working on several large-scale, end-to-end SAP project implementation lifecycles, including rollouts. He works with SAP clients to help them identify root causes of business issues and address those with the appropriate SAP products and change management strategies. He now focuses on next-generation SAP products such as SAP S/4HANA, SAP IBP, SAP Ariba, and SAP Hybris.
Akhtar is also a technical advisor to SAPexperts, an ASUG speaker, and a contributor to SearchSAP, where his "Ask the Expert" column shares real-life lessons and best practices gleaned from SAP implementations, ways to avoid common project pitfalls, and features of various SAP products that solve key business issues.
A native of London, England, Martin Murray joined the computer industry upon his graduation from Middlesex University in 1986. In 1991, he began working with SAP R/2 in the Materials Management area for a London-based multi-national beverage company. In 1994, he moved to the United States to work as an SAP R/3 consultant. Since then, he's been implementing the Materials Management (MM) and Warehouse Management (WM) functionality in projects throughout the world. He works for IBM Global Business Services.
Martin is the author of six best-selling books from SAP PRESS: Materials Management with SAP ERP, Warehouse Management with SAP ERP, Discover Logistics with SAP ERP, Maximize Your Warehouse Operations with SAP ERP, Understanding the SAP Logistics Information System, and SAP Transaction Codes: Your Quick Reference to T-Codes in SAP ERP.
Content
... Acknowledgments ... 31
... Preface ... 33
... Who Is This Book For? ... 33
... How This Book Is Organized ... 33
... Conclusion ... 38
1 ... Materials Management Overview ... 39
1.1 ... What Is Materials Management? ... 39
1.2 ... Materials Management Integration ... 43
1.3 ... Summary ... 45
2 ... Organizational Structure ... 47
2.1 ... Mapping Business Functions of a Company in the SAP System ... 48
2.2 ... Client Structure in the SAP System ... 51
2.3 ... Company Code ... 55
2.4 ... Plants ... 57
2.5 ... Storage Locations ... 63
2.6 ... Purchasing Organization ... 66
2.7 ... Purchasing Groups ... 73
2.8 ... SAP Calendar ... 73
2.9 ... Summary ... 77
3 ... Configuring the Material Master ... 79
3.1 ... Material Master ... 79
3.2 ... Configuring a New Material Type ... 81
3.3 ... Defining a Number Range for a Material Type ... 86
3.4 ... Defining Field Selections ... 89
3.5 ... Configuring an Industry Sector ... 91
3.6 ... Defining Material Groups ... 91
3.7 ... Configuring a New Unit of Measure ... 92
3.8 ... Validating the Correctness of Configurable Objects ... 95
3.9 ... Summary ... 100
4 ... Material Master Data: Part 1 ... 101
4.1 ... Industry Sector ... 103
4.2 ... Material Type ... 103
4.3 ... Basic Data ... 109
4.4 ... Classification Data ... 122
4.5 ... Purchasing Data ... 124
4.6 ... Sales Organizational Data ... 134
4.7 ... Sales General Data ... 140
4.8 ... Material Requirements Planning Data ... 143
4.9 ... Summary ... 162
5 ... Material Master Data: Part 2 ... 163
5.1 ... Advanced Planning Data ... 163
5.2 ... Forecasting Data ... 169
5.3 ... Work Scheduling Data ... 174
5.4 ... Production Resources/Tools Data ... 178
5.5 ... Plant Data/Storage Location ... 181
5.6 ... Warehouse Management Data ... 187
5.7 ... Quality Management Data ... 192
5.8 ... Accounting Data ... 196
5.9 ... Costing Data ... 201
5.10 ... Summary ... 205
6 ... Business Partners ... 207
6.1 ... Configuring Vendor Account Groups (Financial Accounting) ... 209
6.2 ... Configuring a Business Partner ... 214
6.3 ... Customer/Vendor Integration ... 220
6.4 ... Additional Business Partner Configurations ... 224
6.5 ... Maintaining a Business Partner ... 226
6.6 ... Summary ... 260
7 ... Purchasing Information Record ... 261
7.1 ... Purchasing General Data ... 262
7.2 ... Purchasing Organization Data ... 267
7.3 ... Summary ... 273
8 ... Batch Management Data ... 275
8.1 ... Batch Management Overview ... 275
8.2 ... Batch Level and Batch Status Management ... 277
8.3 ... Master Data in Batch Management ... 282
8.4 ... Business Processes of Batch Management ... 287
8.5 ... Batch Determination ... 294
8.6 ... Recurring Inspection and Expiration Dates ... 307
8.7 ... Batch Derivation ... 315
8.8 ... Batch Traceability of Work in Process Batches ... 325
8.9 ... Batch Information Cockpit ... 336
8.10 ... Electronic Batch Record ... 339
8.11 ... Summary ... 341
9 ... Purchasing Overview ... 343
9.1 ... Purchase Requisitions ... 343
9.2 ... Requests for Quotation ... 344
9.3 ... Quotations ... 345
9.4 ... Purchase Orders ... 346
9.5 ... Source Lists and Source Determination ... 346
9.6 ... Conditions in Purchasing ... 352
9.7 ... Purchasing Information Records ... 354
9.8 ... Serial Numbers ... 357
9.9 ... Quota Arrangements ... 359
9.10 ... Summary ... 361
10 ... Purchase Requisitions ... 363
10.1 ... Configuring a New Purchase Requisition Document Type ... 363
10.2 ... Processing a Purchase Requisition ... 375
10.3 ... Indirectly Created Requisitions ... 378
10.4 ... Release Procedures ... 380
10.5 ... Summary ... 399
11 ... Requests for Quotation ... 401
11.1 ... Creating a Request for Quotation ... 401
11.2 ... Changing a Request for Quotation ... 410
11.3 ... Releasing a Request for Quotation ... 411
11.4 ... Issuing a Request for Quotation to a Vendor ... 413
11.5 ... Maintaining Quotations ... 415
11.6 ... Comparing Quotations ... 416
11.7 ... Rejecting Quotations ... 420
11.8 ... Summary ... 422
12 ... Purchase Orders ... 423
12.1 ... Creating and Maintaining a Purchase Order ... 424
12.2 ... Blocking and Canceling a Purchase Order ... 430
12.3 ... Creating a Purchase Order with Reference to Purchasing Documents ... 432
12.4 ... Account Assignment in a Purchase Order ... 435
12.5 ... Progress Tracking ... 438
12.6 ... Outline Purchase Agreements ... 443
12.7 ... Supplier Confirmation ... 451
12.8 ... Messages and Output ... 459
12.9 ... Pricing Procedures ... 468
12.10 ... Supplier Evaluation ... 478
12.11 ... Serial Numbers in Purchasing ... 489
12.12 ... Summary ... 496
13 ... External Services Management ... 497
13.1 ... Service Master Record ... 498
13.2 ... Standard Service Catalog ... 502
13.3 ... Conditions in External Services Management ... 502
13.4 ... Procurement of Services ... 503
13.5 ... Entry of Services ... 505
13.6 ... Blanket Purchase Orders ... 509
13.7 ... Configuration Basics of External Services Management ... 512
13.8 ... Summary ... 514
14 ... Special Procurement Types ... 515
14.1 ... Overview ... 516
14.2 ... Direct Procurement ... 518
14.3 ... Stock Transfers (Interplant Transfers) ... 521
14.4 ... Withdrawals from an Alternative Plant ... 524
14.5 ... Subcontracting ... 525
14.6 ... Consignment ... 532
14.7 ... Pipeline Material ... 534
14.8 ... Simplified Sourcing ... 535
14.9 ... Summary ... 537
15 ... Material Requirements Planning ... 539
15.1 ... Process Overview ... 540
15.2 ... Material Requirements Planning Elements ... 545
15.3 ... Material Requirements Planning Procedures ... 564
15.4 ... Planning Areas ... 582
15.5 ... Classic MRP ... 587
15.6 ... Configuration Settings ... 590
15.7 ... Planning Calendar ... 593
15.8 ... Summary ... 595
16 ... Forecasting ... 597
16.1 ... Forecast Models ... 598
16.2 ... Forecasting Master Data ... 600
16.3 ... Forecast Profile ... 604
16.4 ... Business Processes in Forecasting ... 605
16.5 ... Configuration Settings for Forecasting ... 611
16.6 ... Summary ... 614
17 ... Inventory Management Overview ... 617
17.1 ... Goods Movements ... 617
17.2 ... Physical Inventory ... 625
17.3 ... Returns ... 625
17.4 ... Material Documents ... 630
17.5 ... Reservations ... 631
17.6 ... Stock Transfers ... 638
17.7 ... Configuration Basics in Inventory Management ... 645
17.8 ... Summary ... 649
18 ... Goods Issue ... 651
18.1 ... Goods Issue to a Production Order ... 651
18.2 ... Goods Issue to Scrap ... 659
18.3 ... Goods Issue for Sampling ... 662
18.4 ... Goods Issue Postings ... 663
18.5 ... Goods Issue Reversals ... 664
18.6 ... Summary ... 665
19 ... Goods Receipt ... 667
19.1 ... Goods Receipt for a Purchase Order ... 667
19.2 ... Goods Receipt for a Production Order ... 675
19.3 ... Initial Entry of Inventory ... 676
19.4 ... Good Receipt of Co-Products or By-Products ... 679
19.5 ... Other Goods Receipts ... 696
19.6 ... Summary ... 698
20 ... Physical Inventory ... 699
20.1 ... Physical Inventory Methods ... 700
20.2 ... Physical Inventory Preparation ... 701
20.3 ... Counting and Recounts ... 705
20.4 ... Physical Inventory Posting ... 709
20.5 ... Cycle Counting Method of Physical Inventory ... 714
20.6 ... Summary ... 717
21 ... Invoice Verification ... 719
21.1 ... Standard Three-Way Match ... 720
21.2 ... Duplicate Invoice Check ... 725
21.3 ... Evaluated Receipt Settlement ... 726
21.4 ... Credit Memos and Reversals ... 731
21.5 ... Taxes in Invoice Verification ... 732
21.6 ... Goods Receipt/Invoice Receipt Account Maintenance ... 732
21.7 ... Invoice Reduction ... 734
21.8 ... Tolerance Limits ... 736
21.9 ... Blocking Invoices ... 740
21.10 ... Releasing Blocked Invoices ... 742
21.11 ... Down Payments ... 743
21.12 ... Retention Money ... 748
21.13 ... Summary ... 749
22 ... Inventory Valuation and Account Assignment ... 751
22.1 ... Split Valuation ... 752
22.2 ... Account Determination ... 765
22.3 ... Last In First Out Valuation ... 780
22.4 ... First In First Out Valuation ... 787
22.5 ... Lowest Value Determination ... 790
22.6 ... Material Price Changes ... 795
22.7 ... Summary ... 797
23 ... Material Ledger ... 799
23.1 ... Material Ledger Overview ... 799
23.2 ... Business Processes ... 803
23.3 ... Configuration Basics ... 810
23.4 ... Activating the Material Ledger ... 820
23.5 ... Reporting in the Material Ledger ... 823
23.6 ... Summary ... 828
24 ... Classification System ... 829
24.1 ... Classification Overview ... 830
24.2 ... Characteristics ... 832
24.3 ... Classes ... 838
24.4 ... Object Dependencies ... 843
24.5 ... Finding Objects Using Classification ... 844
24.6 ... Summary ... 848
25 ... Document Management System ... 849
25.1 ... Configuration Steps ... 849
25.2 ... Document Info Record ... 860
25.3 ... Additional Functionality ... 866
25.4 ... Summary ... 871
26 ... Early Warning System ... 873
26.1 ... Overview ... 874
26.2 ... Early Warning System Setup ... 875
26.3 ... Scheduling an Early Warning System ... 884
26.4 ... Early Warning System in Action ... 885
26.5 ... Exception Analysis ... 887
26.6 ... Summary ... 888
27 ... Reporting and Analytics ... 889
27.1 ... The Basics of Reporting ... 889
27.2 ... Purchasing Reports ... 892
27.3 ... Standard Analyses: Purchasing ... 900
27.4 ... Standard Analyses: Inventory Management ... 905
27.5 ... SAP Fiori Apps ... 911
27.6 ... Summary ... 918
A ... Movement Types ... 919
B ... The Authors ... 921
... Index ... 923
... Preface ... 33
... Who Is This Book For? ... 33
... How This Book Is Organized ... 33
... Conclusion ... 38
1 ... Materials Management Overview ... 39
1.1 ... What Is Materials Management? ... 39
1.2 ... Materials Management Integration ... 43
1.3 ... Summary ... 45
2 ... Organizational Structure ... 47
2.1 ... Mapping Business Functions of a Company in the SAP System ... 48
2.2 ... Client Structure in the SAP System ... 51
2.3 ... Company Code ... 55
2.4 ... Plants ... 57
2.5 ... Storage Locations ... 63
2.6 ... Purchasing Organization ... 66
2.7 ... Purchasing Groups ... 73
2.8 ... SAP Calendar ... 73
2.9 ... Summary ... 77
3 ... Configuring the Material Master ... 79
3.1 ... Material Master ... 79
3.2 ... Configuring a New Material Type ... 81
3.3 ... Defining a Number Range for a Material Type ... 86
3.4 ... Defining Field Selections ... 89
3.5 ... Configuring an Industry Sector ... 91
3.6 ... Defining Material Groups ... 91
3.7 ... Configuring a New Unit of Measure ... 92
3.8 ... Validating the Correctness of Configurable Objects ... 95
3.9 ... Summary ... 100
4 ... Material Master Data: Part 1 ... 101
4.1 ... Industry Sector ... 103
4.2 ... Material Type ... 103
4.3 ... Basic Data ... 109
4.4 ... Classification Data ... 122
4.5 ... Purchasing Data ... 124
4.6 ... Sales Organizational Data ... 134
4.7 ... Sales General Data ... 140
4.8 ... Material Requirements Planning Data ... 143
4.9 ... Summary ... 162
5 ... Material Master Data: Part 2 ... 163
5.1 ... Advanced Planning Data ... 163
5.2 ... Forecasting Data ... 169
5.3 ... Work Scheduling Data ... 174
5.4 ... Production Resources/Tools Data ... 178
5.5 ... Plant Data/Storage Location ... 181
5.6 ... Warehouse Management Data ... 187
5.7 ... Quality Management Data ... 192
5.8 ... Accounting Data ... 196
5.9 ... Costing Data ... 201
5.10 ... Summary ... 205
6 ... Business Partners ... 207
6.1 ... Configuring Vendor Account Groups (Financial Accounting) ... 209
6.2 ... Configuring a Business Partner ... 214
6.3 ... Customer/Vendor Integration ... 220
6.4 ... Additional Business Partner Configurations ... 224
6.5 ... Maintaining a Business Partner ... 226
6.6 ... Summary ... 260
7 ... Purchasing Information Record ... 261
7.1 ... Purchasing General Data ... 262
7.2 ... Purchasing Organization Data ... 267
7.3 ... Summary ... 273
8 ... Batch Management Data ... 275
8.1 ... Batch Management Overview ... 275
8.2 ... Batch Level and Batch Status Management ... 277
8.3 ... Master Data in Batch Management ... 282
8.4 ... Business Processes of Batch Management ... 287
8.5 ... Batch Determination ... 294
8.6 ... Recurring Inspection and Expiration Dates ... 307
8.7 ... Batch Derivation ... 315
8.8 ... Batch Traceability of Work in Process Batches ... 325
8.9 ... Batch Information Cockpit ... 336
8.10 ... Electronic Batch Record ... 339
8.11 ... Summary ... 341
9 ... Purchasing Overview ... 343
9.1 ... Purchase Requisitions ... 343
9.2 ... Requests for Quotation ... 344
9.3 ... Quotations ... 345
9.4 ... Purchase Orders ... 346
9.5 ... Source Lists and Source Determination ... 346
9.6 ... Conditions in Purchasing ... 352
9.7 ... Purchasing Information Records ... 354
9.8 ... Serial Numbers ... 357
9.9 ... Quota Arrangements ... 359
9.10 ... Summary ... 361
10 ... Purchase Requisitions ... 363
10.1 ... Configuring a New Purchase Requisition Document Type ... 363
10.2 ... Processing a Purchase Requisition ... 375
10.3 ... Indirectly Created Requisitions ... 378
10.4 ... Release Procedures ... 380
10.5 ... Summary ... 399
11 ... Requests for Quotation ... 401
11.1 ... Creating a Request for Quotation ... 401
11.2 ... Changing a Request for Quotation ... 410
11.3 ... Releasing a Request for Quotation ... 411
11.4 ... Issuing a Request for Quotation to a Vendor ... 413
11.5 ... Maintaining Quotations ... 415
11.6 ... Comparing Quotations ... 416
11.7 ... Rejecting Quotations ... 420
11.8 ... Summary ... 422
12 ... Purchase Orders ... 423
12.1 ... Creating and Maintaining a Purchase Order ... 424
12.2 ... Blocking and Canceling a Purchase Order ... 430
12.3 ... Creating a Purchase Order with Reference to Purchasing Documents ... 432
12.4 ... Account Assignment in a Purchase Order ... 435
12.5 ... Progress Tracking ... 438
12.6 ... Outline Purchase Agreements ... 443
12.7 ... Supplier Confirmation ... 451
12.8 ... Messages and Output ... 459
12.9 ... Pricing Procedures ... 468
12.10 ... Supplier Evaluation ... 478
12.11 ... Serial Numbers in Purchasing ... 489
12.12 ... Summary ... 496
13 ... External Services Management ... 497
13.1 ... Service Master Record ... 498
13.2 ... Standard Service Catalog ... 502
13.3 ... Conditions in External Services Management ... 502
13.4 ... Procurement of Services ... 503
13.5 ... Entry of Services ... 505
13.6 ... Blanket Purchase Orders ... 509
13.7 ... Configuration Basics of External Services Management ... 512
13.8 ... Summary ... 514
14 ... Special Procurement Types ... 515
14.1 ... Overview ... 516
14.2 ... Direct Procurement ... 518
14.3 ... Stock Transfers (Interplant Transfers) ... 521
14.4 ... Withdrawals from an Alternative Plant ... 524
14.5 ... Subcontracting ... 525
14.6 ... Consignment ... 532
14.7 ... Pipeline Material ... 534
14.8 ... Simplified Sourcing ... 535
14.9 ... Summary ... 537
15 ... Material Requirements Planning ... 539
15.1 ... Process Overview ... 540
15.2 ... Material Requirements Planning Elements ... 545
15.3 ... Material Requirements Planning Procedures ... 564
15.4 ... Planning Areas ... 582
15.5 ... Classic MRP ... 587
15.6 ... Configuration Settings ... 590
15.7 ... Planning Calendar ... 593
15.8 ... Summary ... 595
16 ... Forecasting ... 597
16.1 ... Forecast Models ... 598
16.2 ... Forecasting Master Data ... 600
16.3 ... Forecast Profile ... 604
16.4 ... Business Processes in Forecasting ... 605
16.5 ... Configuration Settings for Forecasting ... 611
16.6 ... Summary ... 614
17 ... Inventory Management Overview ... 617
17.1 ... Goods Movements ... 617
17.2 ... Physical Inventory ... 625
17.3 ... Returns ... 625
17.4 ... Material Documents ... 630
17.5 ... Reservations ... 631
17.6 ... Stock Transfers ... 638
17.7 ... Configuration Basics in Inventory Management ... 645
17.8 ... Summary ... 649
18 ... Goods Issue ... 651
18.1 ... Goods Issue to a Production Order ... 651
18.2 ... Goods Issue to Scrap ... 659
18.3 ... Goods Issue for Sampling ... 662
18.4 ... Goods Issue Postings ... 663
18.5 ... Goods Issue Reversals ... 664
18.6 ... Summary ... 665
19 ... Goods Receipt ... 667
19.1 ... Goods Receipt for a Purchase Order ... 667
19.2 ... Goods Receipt for a Production Order ... 675
19.3 ... Initial Entry of Inventory ... 676
19.4 ... Good Receipt of Co-Products or By-Products ... 679
19.5 ... Other Goods Receipts ... 696
19.6 ... Summary ... 698
20 ... Physical Inventory ... 699
20.1 ... Physical Inventory Methods ... 700
20.2 ... Physical Inventory Preparation ... 701
20.3 ... Counting and Recounts ... 705
20.4 ... Physical Inventory Posting ... 709
20.5 ... Cycle Counting Method of Physical Inventory ... 714
20.6 ... Summary ... 717
21 ... Invoice Verification ... 719
21.1 ... Standard Three-Way Match ... 720
21.2 ... Duplicate Invoice Check ... 725
21.3 ... Evaluated Receipt Settlement ... 726
21.4 ... Credit Memos and Reversals ... 731
21.5 ... Taxes in Invoice Verification ... 732
21.6 ... Goods Receipt/Invoice Receipt Account Maintenance ... 732
21.7 ... Invoice Reduction ... 734
21.8 ... Tolerance Limits ... 736
21.9 ... Blocking Invoices ... 740
21.10 ... Releasing Blocked Invoices ... 742
21.11 ... Down Payments ... 743
21.12 ... Retention Money ... 748
21.13 ... Summary ... 749
22 ... Inventory Valuation and Account Assignment ... 751
22.1 ... Split Valuation ... 752
22.2 ... Account Determination ... 765
22.3 ... Last In First Out Valuation ... 780
22.4 ... First In First Out Valuation ... 787
22.5 ... Lowest Value Determination ... 790
22.6 ... Material Price Changes ... 795
22.7 ... Summary ... 797
23 ... Material Ledger ... 799
23.1 ... Material Ledger Overview ... 799
23.2 ... Business Processes ... 803
23.3 ... Configuration Basics ... 810
23.4 ... Activating the Material Ledger ... 820
23.5 ... Reporting in the Material Ledger ... 823
23.6 ... Summary ... 828
24 ... Classification System ... 829
24.1 ... Classification Overview ... 830
24.2 ... Characteristics ... 832
24.3 ... Classes ... 838
24.4 ... Object Dependencies ... 843
24.5 ... Finding Objects Using Classification ... 844
24.6 ... Summary ... 848
25 ... Document Management System ... 849
25.1 ... Configuration Steps ... 849
25.2 ... Document Info Record ... 860
25.3 ... Additional Functionality ... 866
25.4 ... Summary ... 871
26 ... Early Warning System ... 873
26.1 ... Overview ... 874
26.2 ... Early Warning System Setup ... 875
26.3 ... Scheduling an Early Warning System ... 884
26.4 ... Early Warning System in Action ... 885
26.5 ... Exception Analysis ... 887
26.6 ... Summary ... 888
27 ... Reporting and Analytics ... 889
27.1 ... The Basics of Reporting ... 889
27.2 ... Purchasing Reports ... 892
27.3 ... Standard Analyses: Purchasing ... 900
27.4 ... Standard Analyses: Inventory Management ... 905
27.5 ... SAP Fiori Apps ... 911
27.6 ... Summary ... 918
A ... Movement Types ... 919
B ... The Authors ... 921
... Index ... 923