Introduction SAP R/3 MM

Dr D[ama| 2|an|
k|ng 5aud Un|vers|ty
L8SofLware SA 8/3
CIient / Server
ABAP/4
R/3
SD
MM
PP
QA
PM
HR
IS
OC
PS
AM
CO
FI
Sales and
Distribution
Material
Management
Controlling
Financial
Accounting

omponenLs of MaLerlals
ManaaemenL
MaLerlals
ManaaemenL
(MM)
g|st|cs
Inv|ce
Ver|f|cat|n
Mater|a|
Master
hys|ca|
Inventry
Va|uat|n
Mk
5erv|ce
Lntry
5heet
5erv|ce
Master
rduct
Cata|g
urchas|ng
Inventry
Mgmt
Ire|gn
1rade/
Custms

raanlzaLlonal uaLa
W A hlerarchv ln whlch Lhe oraanlzaLlonal unlLs
ln an enLerprlse are arranaed accordlna Lo
Lasks and funcLlons
W Are sLaLlc daLa and are rarelv chanaed
W 1he deflnlLlon of oraanlzaLlon unlLs ls a
fundamenLal sLep lL ls a crlLlcal facLor ln how
Lhe companv wlll be sLrucLured
raanlzaLlonal SLrucLures

raanlzaLlonal SLrucLures
W llenL
W ompanv
W lanL
W valuaLlon Area
W SLoraae LocaLlons
W urchaslna raanlzaLlons
W urchaslna Croups
raanlzaLlonal SLrucLures C||ent
W 1he cllenL ls a unlL wlLhln an SA 8/3 svsLem
LhaL ls selfconLalned boLh ln leaal and
oraanlzaLlonal Lerms and ln Lerms of daLa
wlLh separaLe masLer records and an
lndependenL seL of Lables
W lrom a us|ness v|ewp|nt Lhe cllenL
represenLs a crprate grup for example
W llenL 3 numerlcal dlalLs
raanlzaLlonal SLrucLures Cmpany
W 1he companv ls Lhe smallesL oraanlzaLlonal
unlL of exLernal accounLlna for whlch a
compleLe selfconLalned bookkeeplna svsLem
can be repllcaLed
W A companv code represenLs an lndependenL
unlL produclna lLs own balance sheeL for
example a companv wlLhln a corporaLe aroup
(cllenL)
W ompanv code 4 characLers

raanlzaLlonal SLrucLures |ant

W LowesL valuaLlon area
W raanlzaLlonal level where MaLerlal
8equlremenLs (M8) runs
W Cenerallv used Lo descrlbe a producLlon slLe a
dlsLrlbuLlon cenLer or cenLrallzed warehouse
W Mav be a phvslcal or loalcal unlL

raanlzaLlonal SLrucLures Va|uat|n

Area
W 1he valuaLlon area deLermlnes aL whlch level a
maLerlal ls valuaLed (lnvenLorv value ls
esLabllshed)
W SA 8/3 allows valuaLlon aL Lhe companv code
or planL level buL recommends valuaLlon area
be seL aL Lhe planL level
W Means each planL can have lLs own maLerlal
prlces and accounL deLermlnaLlon

raanlzaLlonal SLrucLures 5trage

cat|n
W Subdlvlslon of a planL
W Where maLerlals are manaaed (lnvenLorv
manaaemenL)
8aw MaLerlals
MalnLenance 8epalr and Lher (M8)
llnlshed roducL
W Mav be a phvslcal or loalcal unlL
raanlzaLlonal SLrucLures urchas|ng
Crgan|zat|ns
W An oraanlzaLlonal unlL responslble for
procurlna maLerlals or servlces for one or
more planLs and for neaoLlaLlna aeneral
condlLlons of purchase wlLh vendors
W 1he purchaslna oraanlzaLlon assumes leaal
responslblllLv for all exLernal purchase
LransacLlons
urchaslna oraanlzaLlon
5urchasing grou5 MG 5urchasing grou5 MG
5urchasing organization
5urchasing grou5 MG 5urchasing grou5 MG
5urchasing grou5 MG 2 5 5urchasing grou5 MG 2 5
5urchasing grou5 MG 7 8 5urchasing grou5 MG 7 8
5lant 5lant
5urchasing grou5 MG 5urchasing grou5 MG
2,teri,I
group
raanlzaLlonal SLrucLures urchas|ng
Crgan|zat|n Grups
W%he 5urchasing organization is further
subdivided into 5urchasing grou5s (buyer
grou5s) which are res5onsible for day-to-day
buying activities.
A 5urchasing grou5 can also act for several
5urchasing organizations.
A 5urchasing grou5 can be defined by line
5roducts (Frame Engine %ires.)
nvenLorv ManaaemenL wlLh a
Warehouse ManaaemenL SvsLem
.Iient
0001 0001
pI,nt
stor,ge Io.,tion
001 001 w,rehouse nu2-er
001 001 stor,ge type
05-04-03 05-04-03
002 002
05-04-04 05-04-04 stor,ge -in


.o2p,ny .ode
0001 - ABC in. 0001 - ABC in.
0001 - Jones in. 0001 - Jones in. 0002 - ModeI Ltd 0002 - ModeI Ltd
pur.h,sing org,niz,tion
0001 0001
0001 0001 0002 0002 0003 0003
0002 0002 0003 0003 0004 0004 0001 0001
0002 0002 0003 0003 0004 0004
distri--
.enter
f,.tory
(physi.,I sto.
1he Module MM Maln luncLlons
MM lnLerdependencles Lo oLher modules
MM
material master
5urchasing
requirements 5lan.
inventory mgmt.
invoice verification
MM
material master
5urchasing
requirements 5lan.
inventory mgmt.
invoice verification
SD
sales and
distrib.
SD
sales and
distrib.
PM
5lant
maintenance
PM
5lant
maintenance
QM
quality
management
QM
quality
management
PP
5roduction
5lanning
PP
5roduction
5lanning
Logisti
FI
financial acc.
FI
financial acc.
CO
controlling
CO
controlling
AM
fixed assets mgmt.
AM
fixed assets mgmt.
aslc uaLa
W MasLer records lnclude lnformaLlon abouL
1 vendors
2 maLerlal and servlces Lo be procured
3 Lhe relaLlon beLween 1 and 2 (potcbosloo lofo
tecotJ)
ea prlces / Lerms and condlLlons
W bllls of maLerlal for
producLlon plannlna
purchaslna
sales and dlsLrlbuLlon
wlLhdrawal of MaLerlal
W invoice entry
W invoice verification
W 5ayment handling
W invoice entry
W invoice verification
W 5ayment handling
W request for quotation
W quotation 5rocessing
W 5urch. order handling
W request for quotation
W quotation 5rocessing
W 5urch. order handling
SLrucLure of Lhe vendor MasLer 8ecord
General data
W name
W address
W control data
General data
W name
W address
W control data
accounting data
W bank account
W acc. maintenance
W 5ayment
accounting data
W bank account
W acc. maintenance
W 5ayment
5urchasing
W terms and cond.
W 5artner functions
W currency
5urchasing
W terms and cond.
W 5artner functions
W currency
utilization utilization
for each
5urchasing
organization
for each
5urchasing
organization
client wide or
for each
.o2p,ny .ode
client wide or
for each
.o2p,ny .ode
client wide client wide
area of validity area of validity sections sections
reaLe a vendor
Creat|ng ur Cwn Vendr Master kecrd
Usage
We recommend LhaL vou creaLe vour own vendor masLer
record for Lhls scenarlo f however vou prefer Lo use Lhe
reference vendor lnsLead lL could be LhaL Lhe order currencv
has alreadv been chanaed and Lhls uLS scenarlo mav no
lonaer work
?ou creaLe a Cerman vendor ln companv code 1000 uLS AC
Cermanv Lo creaLe purchase orders and lnvolces
denomlnaLed ln euros
reaLe a vendor
Menu P,th Logistics FMaterials Management
FPurchasing FMaster Data F
Vendor FCentral FCreate
%r,ns,.tion Code
rcedure
1all up Lhe LransacLlon as follows
reaLe a vendor
FieId D,t,
'endor Your own vendor (choose a
number between and
)
Com5any code
!urch. organization
Account grou5 EF
Reference vendor 8
Reference com5any code
Reference 5urchasing
organization

n the Create 'endor: nitial Screen enter the following
data:
reaLe a vendor
n the Create 'endor: Address screen enter the following data:
FieId D,t,
Descri5tion Any
Search term Any for exam5le "euro"
Street/House number Any
!ostal code/City 5-figure numerical (any)
Country DE
anguage DE
. Choose until you reach the Create 'endor: Accounting and
make sure that a55ears in the Reconciliation Account
field.
2. Choose until the Create 'endor: !urchasing Data screen
a55ears.
. n the Create 'endor: !urchasing Data screen check that the
order currency is EUR.
. Choose until the Create 'endor: !artner Functions screen
a55ears.
5. Choose until the Create 'endor: !artner Functions screen
a55ears.
. Choose until the Create 'endor: !artner Functions screen
a55ears.
reaLe a vendor
reaLe a vendor
reaLe a vendor
reaLe a vendor
vlews on Lhe MaLerlal MasLer 8ecord
e,.h view is 2,int,ined -y , .ert,in user dep,rt2ent of the fir2
,..ounting: valuation- und calculation-specific infor2,tion
require2ents pI,nning: infor2,tion ,-out 2aterial require2ents
planning (e. g. reorder point)
pur.h,sing: e g responsi-Ie pur.h,sing group, order unit
engineering: technical infor2ation
stor,ge: infor2,tion ,-out arehousing, 2aterial 2ove2ents, ...
fore.,st: infor2,tion ,-out the forecasting of the 2aterial require2ents
S & D: infor2,tionen ,-out sales orders ,nd price deter2ination
uemo reaLe MaLerlal MasLer
uemo reaLe MaLerlal MasLer
WSeIe.t the views: asic data !urchasing !urchase rder
text Gl. !lant Data/Storage Accounting
uemo reaLe MaLerlal MasLer
uemo reaLe MaLerlal MasLer
uemo reaLe MaLerlal MasLer
uemo reaLe MaLerlal MasLer
uemo reaLe MaLerlal MasLer
uemo reaLe MaLerlal MasLer
SA'E
purchaslna lnfo record
info record info record
5rices
terms & cond.
! statistics
tolerance levels
date
5rices
terms & cond.
! statistics
tolerance levels
date
quotation
order
outline
agreement
outline agreem.
!
urchaslna rocess
MM


determination: requirements


determination: source of su55ly
vendor 1 vendor 1
vendor 2 vendor 2
vendor selection
vendor
!
!
5urchase order 5rocessing
! monitoring
goods received &
inventory mgmt.
! invoice
?
=
invoice verification invoice verification
?
reaLe urchase rder ()

vendor known
5urch. order
vendor 2 vendor 2
2
vendor not known
terms & cond.
outline
agrement
source list
vendor
info record

assigned 5urchase
requisition exists
(from user de5artment)
5urch. req.
vendor 2 vendor 2
5urch. order
5urch. order
urchaslna rocess
W reaLe a requlslLlon
W llrsL release of requlslLlon
W reaLe 8lC (8equesL for CuoLaLlon) wlLh
reference Lo requlslLlon
W reaLe (urchase rder) wlLh reference Lo
8lC
W ueparLmenL recelves maLerlal ordered (C8)
W ueparLmenL pavs lnvolce (M8)
urchase kequ|s|t|n
Document generated by a user de5artment
or storeroom-5ersonnel to notify the
5urchasing de5artment of items it needs to
order their quantity and the timeframe. t
may also contain the authorization to
5roceed with the 5urchase. Also called
5urchase request or requisition.
kequest fr Cutat|n
s a standard business 5rocess whose 5ur5ose is
to invite su55liers into a bidding 5rocess to bid on
s5ecific 5roducts or services. RFQ generally
means the same thing as F (nvitation For id)
urchase Crder
uyer-generated document that authorizes a
5urchase transaction. t sets forth the
descri5tions quantities 5rices discounts
5ayment terms date of 5erformance or
shi5ment other associated terms and conditions
and identifies a s5ecific seller.
reaLe urchase 8equlslLlon
reaLe urchase 8equlslLlon
reaLe urchase 8equlslLlon
W n the item enter your material !lant= Q% =
reaLe urchase 8equlslLlon
W Save your !urchase requisition
W %ake note of !urchase requisition number
uemo reaLe urchase rder
uemo reaLe urchase rder
W 5en document overview: Click on document
overview button
W Choose "Selection variant list icon
W%hen select "My 5urchase requisition you will get
your 5urchase requisition listed
WClick on "ado5t icon your 5urchase requisition
will be co5ied to the 5urchase order (or you can
drag and dro5 it into the sho55ing cart)
uemo reaLe urchase rder
uemo reaLe urchase rder
W Enter your vendor and 5rice euro and save
osLlna an rder LnLrv (Coods 8ecelpL)
MM MM
Logisti.s
5urchasing req. 5lanning
inventory
controlling
invoice
verification
goods recei5t
inventory mgmt.
goods issue.
tr,nsfer
posting
SD
sales and
distrib.
SD
sales and
distrib.
PM
5lant
maintenance
PM
5lant
maintenance
QM
quality
management
QM
quality
management
PP
5roduction
5lanning
PP
5roduction
5lanning
FI
financial acc.
FI
financial acc.
CO
controlling
CO
controlling
AM
fixed assets mgmt.
AM
fixed assets mgmt.
Coods 8ecelpL 1ransfer posLlna
W &nrestri.ted sto.: You can consume the material stock in unrestricted
use.
W Qu,Iity inspe.tion: Area controlled by QM to ins5ect the quality of
material.
W BIo.ed sto.: is a holding area for materials that have not been 5osted
to a com5any's warehouse stock.
uemo osLlna rder LnLrv (Coods 8ecelved)
. Use %*code : MG
2. Select Goods Recei5t
. Select !urchase rder
. Enter ! number for goods to be received.
5. Hit "Enter"
uemo osLlna rder LnLrv (Coods 8ecelved)
. Enter Document date & 5osting date
7. Enter Header text (comment) if necessary.
8. Close detail data.
uemo osLlna rder LnLrv (Coods 8ecelved)
. Notice that movement data is ""
. f you only received first item then Check the "" box for
first line item.therefore the second item need not be 5rocessed
uemo osLlna rder LnLrv (Coods 8ecelved)
. f you only received 5cs out of 5cs of item one & 2 5cs out of
5cs of item two then Check the "" box for both line item
2. n5ut actual quantity ( & 2 5cs ).
. Hit "Enter"
uemo osLlna rder LnLrv (Coods 8ecelved)
. Click "Check" button to find out if there is any error.
5. Check the "status" column .
. Green means . Yellow means Warning . Red means error
nvolce verlflcaLlon
in5ut
information
in5ut
information
invoice verification invoice verification
out5ut
information
out5ut
information
orders
,.tions:
W enter invoice
W verify invoice
W 5ost invoice
W u5date
relevant data
W (re-edit
invoice)
goods recei5t
2,ster d,t,:
material
vendors
accounts
terms & cond.
financial
accounting
asset
management
cost accounting
nvolce verlflcaLlon
WWhen you 5ost an invoice an accounting document is
created:
WU5date 'endor account
WU5date the account GR/R (Goods Recei5t/nvoice
Receive)
WU5date master data: moving average 5rice value
WU5date 5urchase order history
reaLe nvolce
Create nvoice using %code MR
Enter the !urchase order no. and click on Enter
to dis5lay the material details.
Enter the Required details in all
%abs
Create Invoice (contd..)
Click the check box to calculate the %ax
Create Invoice (contd..)
Enter the Amount and click on save
Create Invoice (contd..)
nvoice is created
uemo nvolce verlflcaLlon
Using the tcode: MR"
uemo nvolce verlflcaLlon
uemo nvolce verlflcaLlon
net amount for
5ositions