Materials Management with SAP ERP: Functionality and Technical Configuration

... Preface ... 29

1 ... Materials Management Overview ... 35
... 1.1 ... Materials Management as a Part of SAP ERP ... 35
... 1.2 ... Materials Management as Part of Logistics ... 38
... 1.3 ... MM Integration ... 39
... 1.4 ... Summary ... 42

2 ... Materials Management Organizational Structure ... 43
... 2.1 ... Client Structure ... 43
... 2.2 ... Company Code ... 46
... 2.3 ... Plants ... 48
... 2.4 ... Storage Locations ... 51
... 2.5 ... Warehouse and Storage Types ... 55
... 2.6 ... Purchasing Organization ... 57
... 2.7 ... Business Examples -- Organizational Structure ... 61
... 2.8 ... Summary ... 64

3 ... Master Data in Materials Management ... 65
... 3.1 ... Material Master ... 65
... 3.2 ... Vendor Master ... 70
... 3.3 ... Purchasing Information Data ... 76
... 3.4 ... Batch Management Data ... 79
... 3.5 ... Serial Number Data ... 82
... 3.6 ... Business Examples -- Master Data in Materials Management ... 85
... 3.7 ... Summary ... 88

4 ... Material Master Data -- Part 1 ... 89
... 4.1 ... Industry Sector ... 89
... 4.2 ... Material Type ... 90
... 4.3 ... Basic Data ... 97
... 4.4 ... Classification Data ... 107
... 4.5 ... Purchasing Data ... 109
... 4.6 ... Forecasting Data ... 120
... 4.7 ... Work Scheduling Data ... 124
... 4.8 ... Sales Organizational Data ... 128
... 4.9 ... Sales General Data ... 134
... 4.10 ... Business Examples -- Material Master Data ... 137
... 4.11 ... Summary ... 140

5 ... Material Master Data -- Part 2 ... 141
... 5.1 ... Production Resources/Tools (PRT) Data ... 141
... 5.2 ... Plant Data/Storage Location ... 144
... 5.3 ... Warehouse Management Data ... 149
... 5.4 ... Quality Management Data ... 155
... 5.5 ... Material Requirements Planning Data ... 158
... 5.6 ... Accounting Data ... 175
... 5.7 ... Costing Data ... 180
... 5.8 ... Business Examples -- Material Master Data ... 183
... 5.9 ... Summary ... 187

6 ... Vendor Master Data ... 189
... 6.1 ... General Data ... 189
... 6.2 ... Accounting Information ... 199
... 6.3 ... Purchasing Data ... 209
... 6.4 ... Business Examples -- Vendor Master Data ... 218
... 6.5 ... Summary ... 220

7 ... Purchasing Information Data ... 221
... 7.1 ... Purchasing General Data ... 221
... 7.2 ... Purchasing Organization Data ... 226
... 7.3 ... Business Examples -- Purchasing Information Data ... 233
... 7.4 ... Summary ... 235

8 ... Batch Management Data ... 237
... 8.1 ... Batch Management Overview ... 237
... 8.2 ... Batch Master Record ... 239
... 8.3 ... Batch Determination ... 248
... 8.4 ... Batch Information Cockpit ... 252
... 8.5 ... Business Examples -- Batch Management Data ... 257
... 8.6 ... Summary ... 258

9 ... Material Master Record ... 261
... 9.1 ... Creating a Material Master Record ... 261
... 9.2 ... Changing a Material Master Record ... 262
... 9.3 ... Material Master Deletion ... 267
... 9.4 ... Loading Material Master Records ... 270
... 9.5 ... Production Versions ... 272
... 9.6 ... Revision Levels ... 276
... 9.7 ... Business Examples -- Material Master Record ... 277
... 9.8 ... Summary ... 280

10 ... Vendor Master Record ... 281
... 10.1 ... Creating the Vendor Master Record ... 281
... 10.2 ... Changing the Vendor Master Record ... 285
... 10.3 ... Deleting Vendor Master Record ... 289
... 10.4 ... Display Vendor Master Record ... 291
... 10.5 ... Blocking Vendors ... 292
... 10.6 ... One-Time Vendor ... 294
... 10.7 ... Vendor Sub-Range Functionality ... 295
... 10.8 ... Business Examples -- Vendor Master ... 296
... 10.9 ... Summary ... 298

11 ... Purchasing Overview ... 301
... 11.1 ... Purchase Requisition ... 301
... 11.2 ... Request for Quotation ... 302
... 11.3 ... Quotation ... 304
... 11.4 ... Purchase Order ... 305
... 11.5 ... Source List and Source Determination ... 307
... 11.6 ... Conditions in Purchasing ... 312
... 11.7 ... Vendor Evaluation ... 314
... 11.8 ... Business Examples - Purchasing ... 322
... 11.9 ... Summary ... 325

12 ... Purchase Requisition ... 327
... 12.1 ... Indirectly Created Requisition ... 327
... 12.2 ... Directly Created Requisition ... 329
... 12.3 ... Processing a Purchase Requisition ... 335
... 12.4 ... Business Examples -- Purchase Requisitions ... 341
... 12.5 ... Summary ... 342

13 ... Request for Quotation ... 343
... 13.1 ... Creating a Request for Quotation ... 343
... 13.2 ... Changing a Request for Quotation ... 352
... 13.3 ... Releasing an RFQ ... 354
... 13.4 ... Issuing a Request for Quotation to a Vendor ... 356
... 13.5 ... Business Examples -- Request for Quotation ... 358
... 13.6 ... Summary ... 359

14 ... Quotation ... 361
... 14.1 ... Entering a Quotation ... 361
... 14.2 ... Comparing Quotations ... 363
... 14.3 ... Rejecting Quotations ... 366
... 14.4 ... Business Examples -- Quotations ... 368
... 14.5 ... Summary ... 370

15 ... Purchase Order ... 371
... 15.1 ... Create a Purchase Order ... 371
... 15.2 ... Maintaining a Purchase Order ... 374
... 15.3 ... Blocking and Canceling a Purchase Order ... 375
... 15.4 ... Account Assignment in a Purchase Order ... 377
... 15.5 ... Outline Purchase Agreement ... 381
... 15.6 ... Scheduling Agreement ... 382
... 15.7 ... Contracts ... 386
... 15.8 ... Vendor Confirmation ... 390
... 15.9 ... Messages and Outputs ... 394
... 15.10 ... Pricing Procedures ... 396
... 15.11 ... Reporting ... 402
... 15.12 ... Release Procedures ... 403
... 15.13 ... Business Examples -- Purchase Orders ... 407
... 15.14 ... Summary ... 409

16 ... External Service Management (ESM) ... 411
... 16.1 ... Service Master Record ... 411
... 16.2 ... Standard Service Catalog (SSC) ... 415
... 16.3 ... Conditions in ESM ... 417
... 16.4 ... Procurement of Services ... 419
... 16.5 ... Entry of Services ... 422
... 16.6 ... Blanket Purchase Order ... 423
... 16.7 ... Business Examples - External Service Management ... 425
... 16.8 ... Summary ... 427

17 ... Consumption-Based Planning ... 429
... 17.1 ... Master Data in CBP ... 429
... 17.2 ... Planning Process ... 432
... 17.3 ... Planning Evaluation ... 434
... 17.4 ... Procurement Proposal ... 436
... 17.5 ... Business Examples -- Consumption-Based Planning ... 437
... 17.6 ... Summary ... 439

18 ... Material Requirements Planning ... 441
... 18.1 ... Reorder-Point Planning ... 441
... 18.2 ... Forecast-Based Planning ... 443
... 18.3 ... Time-Phased Planning ... 444
... 18.4 ... Business Examples -- Material Requirements Planning ... 446
... 18.5 ... Summary ... 449

19 ... Forecasting ... 451
... 19.1 ... Forecast Models ... 451
... 19.2 ... Forecast Parameters ... 453
... 19.3 ... Forecast Options ... 457
... 19.4 ... Business Examples -- Forecasting ... 459
... 19.5 ... Summary ... 461

20 ... Inventory Management Overview ... 463
... 20.1 ... Goods Movements ... 463
... 20.2 ... Goods Issue ... 467
... 20.3 ... Goods Receipt ... 468
... 20.4 ... Physical Inventory ... 468
... 20.5 ... Returns ... 469
... 20.6 ... Reservations ... 474
... 20.7 ... Stock Transfers ... 480
... 20.8 ... Business Examples -- Inventory Management ... 486
... 20.9 ... Summary ... 488

21 ... Goods Issue ... 489
... 21.1 ... Goods Issue to a Production Order ... 489
... 21.2 ... Goods Issue to Scrap ... 494
... 21.3 ... Goods Issue for Sampling ... 497
... 21.4 ... Goods Issue Posting ... 498
... 21.5 ... Goods Issue Reversal ... 500
... 21.6 ... Business Examples -- Goods Issue ... 501
... 21.7 ... Summary ... 503

22 ... Goods Receipt ... 505
... 22.1 ... Goods Receipt for a Purchase Order ... 505
... 22.2 ... Goods Receipt for a Production Order ... 510
... 22.3 ... Initial Entry of Inventory ... 511
... 22.4 ... Other Goods Receipts ... 513
... 22.5 ... Business Examples -- Goods Receipts ... 516
... 22.6 ... Summary ... 519

23 ... Physical Inventory ... 521
... 23.1 ... Physical Inventory Preparation ... 521
... 23.2 ... Counting and Recounts ... 526
... 23.3 ... Physical Inventory Posting ... 530
... 23.4 ... Business Examples -- Physical Inventory ... 534
... 23.5 ... Summary ... 536

24 ... Invoice Verification ... 537
... 24.1 ... Standard Three-Way Match ... 537
... 24.2 ... Evaluated Receipt Settlement ... 542
... 24.3 ... Document Parking ... 544
... 24.4 ... Variances ... 545
... 24.5 ... Blocking Invoices ... 548
... 24.6 ... Releasing Invoices ... 554
... 24.7 ... Business Examples -- Invoice Verification ... 555
... 24.8 ... Summary ... 558

25 ... Balance Sheet Valuation ... 559
... 25.1 ... LIFO Valuation ... 559
... 25.2 ... FIFO Valuation ... 565
... 25.3 ... Lowest Value Determination ... 568
... 25.4 ... Business Examples -- Balance Sheet Valuation ... 574
... 25.5 ... Summary ... 576

26 ... Material Ledger ... 577
... 26.1 ... Material Ledger Overview ... 577
... 26.2 ... Material Ledger Data ... 579
... 26.3 ... Material Price Determination ... 582
... 26.4 ... Business Examples -- Material Ledger ... 586
... 26.5 ... Summary ... 587

27 ... Classification System ... 589
... 27.1 ... Classification Overview ... 589
... 27.2 ... Characteristics ... 591
... 27.3 ... Classes ... 595
... 27.4 ... Class Type ... 597
... 27.5 ... Class Hierarchies ... 600
... 27.6 ... Object Dependencies ... 602
... 27.7 ... Finding Objects Using Classification ... 603
... 27.8 ... Business Examples -- Classification ... 607
... 27.9 ... Summary ... 608

28 ... Document Management ... 611
... 28.1 ... Document Management Overview ... 611
... 28.2 ... Document Information Record ... 611
... 28.3 ... Creating a Document ... 614
... 28.4 ... Linking an Object to a Document ... 615
... 28.5 ... Documents and Classification ... 618
... 28.6 ... Business Examples -- Document Management ... 619
... 28.7 ... Summary ... 620

29 ... Conclusion ... 621
... 29.1 ... Lessons Learned ... 621
... 29.2 ... Future Direction ... 623

... Appendices ... 625
... A ... Bibliography ... 627
... B ... Glossary ... 629
... C ... List of Materials Management Transaction Codes ... 635
... D ... The Author ... 643

... Index ... 645