HSIL LTD

SAP - MM

What is SAP ?
The name SAP is acronym for Systems, Applications and Products in Data Processing.

SAP runs on a fourth generation programming language called Advance Business Application Programming (ABAP). It has many of the features of other modern programming languages such as the familiar C, Visual Basic, and Power Builder.

What is SAP ?
What is SAP R/3?

It is defined as 3 Tier Architecture

Presentation Layer Application Layer Database Layer The application servers communicate with the presentation components, the database, and also with each other, using the message server. All the data are stored in a centralized server. This server is called database server.

Network

User

SAP Application

SAP
SAP Database

SAP ERP
SAP is an enterprise resource planning (ERP) software product capable of integrating multiple business applications, with each application representing a specific business area. These applications update and process transactions in real time mode. It has the ability to be configured to meet the needs of the business. SAP are categorized into 3 core functional areas: Logistics Sales and Distribution (SD) Material Management (MM) Warehouse Management (WM) Production Planning (PP) General Logistics (LO) Quality Management (QM) Financial Financial Accounting (FI) Controlling (CO) Enterprise Controlling (EC) Investment Management (IM) Treasury (TR) Human Resources Personnel Administration (PA) Personnel Development (PD)

What is SAP ?
Master Data: Master data is data that remains unchanged over a period of time. It contains information that is always needed in the same way. Transaction data: Data relating to the day-to-day transactions.

Log on and off Logging on to SAP R/3 requires four pieces of information:
Client User ID Password Language

To start, double click on the SAP icon

Logon to SAP
Client indicates the logical area to which the user is given access privileges

Language field requires two characters: default is English Multiple logons are tracked

Log Off Follow menu path System Log off

Log off confirmation:

Click Yes button to log off Click No button to stay logged on to SAP

Log Off Menu Path

Log Off Confirmation

Screen Basics
Main Screen Menu Bar Status Bar Standard Navigation Buttons

Main screen

Title Bar Menu Bar

Tool Bar

Button Bar

Status Bar Message Bar

Menu bar

Two menus are available on every screen: System Help Other menus depend on the part of the system you are in

Status bar

The status bar in the lower right of the screen tells you: Server/Session/Client Insert/Overtype Indicator Time

To expand the system status, select

Standard Navigation Buttons

Enter Button

Save Button Back Button

Find Next Find Button Button

Help Button

Cancel Button

Create new session Exit Button Button Page up and page down buttons

How is SAP Like Other Windows Programs?

There are many ways to do the same thing In most cases, the keyboard and mouse function the same way Multiple sessions of SAP can be used and managed just like multiple windows Same functionality used to control windows Minimize, Maximize, Cancel Copy and paste feature available in SAP

Using Matchcodes/Search Helps

Matchcodes are a SAP specific search method you can use to find

information
Several different search criteria are possible To access a matchcode, press F4 New matchcodes can be created by selecting the file folder tabs at the top of the matchcode window To enter a multiple selection of values for any one matchcode, position your cursor in that field, click and enter your selections

To close the matchcode window, click

Transaction Codes
Transaction codes are another way to access SAP transactions A transaction code is an alphanumeric shortcut of at least four characters, which can be used instead of following a menu path Screens in SAP have an associated transaction code To display the transaction code of a screen follow the menu path System Status Or look at the status bar for the transaction code

Error Messages
The system provides error messages when something is wrong Error messages appear at the bottom of the screen Some errors must be corrected, others must only be acknowledged by pressing enter Messages starting with: are Critical messages and are Error messages

are Information messages are Question messages are Warning messages

System Information Messages

The system displays information or error messages in the message field at the bottom of the screen

Use the Help button, the F1 key, or double click on the message to find more
information about the message

Using Multiple Sessions

Three ways to move between sessions: Select the window Alt + tab Select session in the Windows task bar Three ways to end a session: Menu path: System End Session Click on the Cancel button in the upper right Double click on the SAP icon in the upper left

Enterprise Structure
Company HSIL

Sales Organization HSIL-1000

Company Code HSIL-1000

Purchasing Organization HSIL-1000

Sales group HSIL Defined States as Sales Groups

Plants

Purchasing group

Storage Location

Plant
Plant describe the place where the production activities are performed or goods and services are provided.

It is attached to the company code

Manufacturing: 1101 (CD-1, Bahadurgarh), 1102 (CD-2, Bibinagar), 1111 (CPD, Bhiwadi) Trading Divisions: 1201 (BTD), 1202 (BBNTD), 1203 (TTD) Sales Depots: Logical Sales Depots: 1301 (Bahadurgarh Depot), 1302 (Bibinagar Depot) 1300 (Tikri Depot) Regular Sales Depots:1303 to 1328 Head offices

Storage Location
It represents the physical area within a plant where the materials are stored. It is attached to a plant. Manufacturing Plants Raw Material Fuels Semi finished Central Stores SQC FG Warehouse Trading Divisions & Sales Depots Depot Stores Services Division

Purchase Organization
It is responsible to procure material and services, negotiation of price with vendor. It can be Company specific - assigned to company code Plant specific assigned to plant

Purchase group
Represents buyer or group of buyers responsible for specific purchasing activities. It represents buyer It is used for reporting Plant & Product Specific

Material Type
Material type is the important identification for material master. Different fields and screens are controlled with respect to material type
HSIL Material Types and their Number Ranges Mat Type ZHRM ZHRB ZHOS ZHNV Descrption Raw Material Raw Material Operating Supplies Non Valuated items Body Raw Materials, Body Additives, Glaze Raw Materials, Colour Stains, Components etc. Used for Bhiwadi Plant with Split Valuation Fuels, Oils & lubricants, etc. Machinery, Assets, Scrap materials General Stores, Bolt & Nuts, Building Materials, Refractories, Lab Items, Stationary, Catologue etc. Maint. Spares, Electricals, Pipes & Pipe Fittings, Tools, etc. Paddy straw, BOPP tapes, Thermocole,Corr. Box, Polythene Sheets and Bags Not to be used for Crabtree Division Internal / External Internal External Internal Internal From To

100000 119999 Alpha Numeric 130000 139999 150000 169999

ZHCN

Consumables

Internal

200000 299999

ZHSP ZHPM ZHTG ZHSF ZHSV ZHFG ZHFP ZHPR

Engg & Spare Parts Packaging Traded Goods Semi Finished Goods Semi Finished (Split Valuation) Finished Goods Finished Products Poduction Resource Tools

Internal Internal Internal External External

300000 399999 400000 449999 500000 599999

Manufactured Sanitaryware Manufactured Faucets

External Numeric Alpha External External Alpha Numeric

Data in SAP
There are two important types of data in SAP Master Data
Master data is the backbone for each transaction. Without master data transactions can not be performed. E.g. Material master Vendor master Purchasing info record

Transaction data
Transaction data are created when performing a transaction. Transaction data are created with the input from master data. e.g. Purchase requisition Purchase order Goods receipt Invoice verification

MM Specific Master data

Material Master Vendor Master Info record MRP Data

Material Master views

Material master contains entire information about the material related all the departments of an organization.
Information related to different departments is stored through different views of material master. Views for material master are
Basic data Classification Sales views Purchasing MRP views Work scheduling Storage locations Warehouse data Quality Management data Accounting data Costing data

Views on a Material Master Record

Basic Data
St

Purchasing

MRP
Material master record

Sales

A B

Stocks in plant/ storage location

Work scheduling
Quality management

Accounting

Storage

Forecasting

Warehouse management

Classification

Vendor Master

`Vendor master contains all the information required to do business with a vendor. Information is shared between the accounting and purchasing departments. All data is grouped into three categories: General data Company code data Purchasing data

Bank

Purch.

Purchase order

Order Recipient

Payment

Payee

Vendor
Material

Invoice

Invoicing Party
Purc. order Invoice

Goods Supplier
Goods receipt

? =
Invoice verification

Purchasing Info Record

It is created for the combination of material, vendor and purchase organization.

General data

Texts

Vendor data Origin data Order unit

Control data Delivery time Minimum quantity Tolerances Prices and conditions Gross price Discount Freight Price history Ordering statistics Change history

MM Module Data flow

Purchase order Invoice

Determine Requirements

Invoice verification

Plan Rqmts.

MM
6 Goods receipt and inventory management
Materials mgmt

Source determination

Order follow-up

Purchase order

3
4 Order processing

Vendor selection

MM Process
1. 2. 3. 4. 5. 6. 7. 8. MRP run triggers the requirements or Manual Requisitions Created. Purchase requisition is released. Vendor is selected. Prepare Purchase Order. Release Purchase Order. Follow up with vendor for supply. Goods Receipt. Receive Invoice and pay vendor.

What is MRP?
MRP stands for: Materials Requirements Planning.

The function of MRP is to provide material availability, that is, it is used to procure or produce the requirement quantities on time. This process involves the monitoring of stocks and demand, leading to the automatic creation of procurement proposals for purchasing or production. The main objective of MRP is to determine which material is required, the quantity required and by when it is required. MRP compares the requirements for end products with the current stocks and planned manufacturing orders. MRP then explodes the product BOMs to determine the dependent requirements for intermediate products and purchased raw materials. MRP can be run Daily / Weekly / Monthly, which is scheduled for automatic run. It can also be done manually.

Purchase Requisition: PR is the request for Material and services. It is the first trigger to
the buyer to arrange for procurement.
It is generated automatically or manually. Item category and account assignment are important in PR

or

Material Resource Planning

Direct Entry
Purchase Order Purchase Order Purchase Order

Purchase requisition

Release strategy

Purchase order

Determine source of supply

Release Strategy
Release strategy helps to control further processing of the Documents. Based on conditions, different person or department can be authorized to release in sequence It can be applied for PR, RFQ and for PO.
Does a Strategy Apply? Release Conditions Value Purchase Group Plant Document Type Who can do what? Release Strategy Who is Authorised to Release? In what Order must the Releasing Occur? What is the Release Indicator?

What can the Requisition be Released to?

Release Indicator Released/Blocked for Ordering

Who is Authorised to release? Release Code Two digit code associated with a user ID

Purchase Order A purchase order is a formal request to a vendor to provide certain materials or services under specific conditions (quantity, price, delivery date, etc.) PO is the legal document. PO can be controlled with header level release procedure. Item category and account assignment are important in PO like PR.

Purchase
Requisition

Purchase Order

Goods Receipt

Invoice Posting

Planning, Reporting, and Analysis

Purchase Order Processing

Purchase Purchase Order Order Direct Entry or Purchase Requisition
Purchase Order Purchase Order Purchase Req.

Standard Standard Sub Subcontract contract Consignment Consignment Third-party Third-party

Statistics Order History

Stock material Consumable material Service

Account assignment
(cost center, asset, project)

Contents in Purchase Order

PO Header

PO Overview

Account Assignment

Pricing Conditions

Texts
PURCHASE ORDER Order History

Delivery Schedules

Additional Data

Services

Changes

Scheduling agreement
It specifies Order quantity Price specific period to supply There is a delivery schedule for each scheduling agreement Helps to reduce paper work

Results of a Goods Receipt Posting

Transaction documents are created both for materials management and finance.

Accounting document G/L accounts: Consumption account GR/IR account Material document Stock quantity Consumption statistics

Goods Receipt Posting

Point of consumption Cost center Order

Purchasing data: Order item, Order history

Transfer Order

Invoice Processing
This last step in the procurement process includes invoice verification and updating accounts payable in the FI module.

Purchase
Requisition

Purchase Order

Goods Receipt

Invoice Posting

Planning, Reporting, and Analysis

Payment will then be made later based upon the open invoices posted on the system

Invoice Verification Environment

Invoice verification accesses data from purchasing, inventory management, material master, and vendor master files.

G/L accounts
Purchase Order

Assets
Purchase Order Purchase Order

Cost centers
Vendor Invoice

Projects Invoice verification Orders

Goods Receipt Material master Vendor master

Posting Postingan aninvoice invoicein inthe theR/3 R/3System System updates purchasing and accounting updates purchasing and accountingdata data

Vendor Payment
Accounts payable reads the invoice file and pays all posted invoices due. (Payment runs can be automated to occur at specific times.)

Vendor

Bank Payment Payment program program

1000

Financial Accounting

1000

Motor Sports International

1234 Main Street New York, NY 10181

1449
Date _______________

Pay to: ________________________________________ ________________________________________________________ _______________ _________________ 12930 39040 2020 20202 10923 1449

Released Invoice