MM document

[Former Member]

Hi,

Can you please send me some link for good MM documents preferable step by step document so that i can learn MM on my own.

[Former Member]

MM Process flow:

The typical procurement cycle for a service or material consists of the following phases:

1. Determination of Requirements

Materials requirements are identified either in the user departments or via materials planning and control. (This can cover both MRP proper and the demand-based approach to inventory control. The regular checking of stock levels of materials defined by master records, use of the order-point method, and forecasting on the basis of past usage are important aspects of the latter.) You can enter purchase requisitions yourself, or they can be generated automatically by the materials planning and control system.

2. Source Determination

The Purchasing component helps you identify potential sources of supply based on past orders and existing longer-term purchase agreements. This speeds the process of creating requests for quotation (RFQs), which can be sent to vendors electronically via SAP EDI, if desired.

3. Vendor Selection and Comparison of Quotations

The system is capable of simulating pricing scenarios, allowing you to compare a number of different quotations. Rejection letters can be sent automatically.

4. Purchase Order Processing

The Purchasing system adopts information from the requisition and the quotation to help you create a purchase order. As with purchase requisitions, you can generate Pos yourself or have the system generate them automatically. Vendor scheduling agreements and contracts (in the SAP System, types of longer-term purchase agreement) are also supported.

5. Purchase Order Follow-Up

The system checks the reminder periods you have specified and - if necessary - automatically prints reminders or expediters at the predefined intervals. It also provides you with an up-to-date status of all purchase requisitions, quotations, and purchase orders.

6. Goods Receiving and Inventory Management

Goods Receiving personnel can confirm the receipt of goods simply by entering the Po number. By specifying permissible tolerances, buyers can limit over- and underdeliveries of ordered goods.

7. Invoice Verification

The system supports the checking and matching of invoices. The accounts payable clerk is notified of quantity and price variances because the system has access to PO and goods receipt data. This speeds the process of auditing and clearing invoices for payment.

Common Tables used by SAP MM:

Below are few important Common Tables used in Materials Management Modules:

EINA Purchasing Info Record- General Data

EINE Purchasing Info Record- Purchasing Organization Data

MAKT Material Descriptions

MARA General Material Data

MARC Plant Data for Material

MARD Storage Location Data for Material

MAST Material to BOM Link

MBEW Material Valuation

MKPF Header- Material Document

MSEG Document Segment- Material

MVER Material Consumption

MVKE Sales Data for materials

RKPF Document Header- Reservation

T023 Mat. groups

T024 Purchasing Groups

T156 Movement Type

T157H Help Texts for Movement Types

MOFF Lists what views have not been created

A501 Plant/Material

EBAN Purchase Requisition

EBKN Purchase Requisition Account Assignment

EKAB Release Documentation

EKBE History per Purchasing Document

EKET Scheduling Agreement Schedule Lines

EKKN Account Assignment in Purchasing Document

EKKO Purchasing Document Header

EKPO Purchasing Document Item

IKPF Header- Physical Inventory Document

ISEG Physical Inventory Document Items

LFA1 Vendor Master (General section)

LFB1 Vendor Master (Company Code)

NRIV Number range intervals

RESB Reservation/dependent requirements

T161T Texts for Purchasing Document Types

Transaction codes:

RFQ to Vendor - ME41

Raising Quotation - ME47

Comparison of Price - ME49

Creation of PO - ME21N

Goods Receipt - MIGO

Invoice (Bill PAssing) - MIRO

Goods Issue - MB1A

Physical Inventory - MI01( Create doc)

MI04 (Enter Count)

MI07 (Post)

Also please check this links.

http://www.sapgenie.com/sapfunc/mm.htm

http://www.sap-basis-abap.com/sapmm.htm

Hope this will help.

<b>for more material just send me ur email id..</b>

[Former Member]

Refer the following links:

Regards,

ravi

[Former Member]

Hai Mukesh

Go through the following MM Document

Procurement in Materials Management

Process Flow

The typical procurement cycle for a service or material consists of the following phases:

&#61656; Determination of Requirements

&#61656; Source Determination

&#61656; Vendor Selection and Comparison of Quotations

&#61656; Purchase Order Processing

&#61656; Purchase Order Follow-Up

&#61656; Goods Receiving and Inventory Management

&#61656; Invoice Verification

Material Master data

Material data is always organized in the same hierarchical fashion. From the Purchasing viewpoint, a material master record contains the following organizational levels: client, purchasing organization, plant, and storage location.

1. Client - general data - This level contains the data applicable to all individual group companies, all plants, and all warehouses/stores belonging to an enterprise (corporate group). Examples of general data are details on a material's design (CAD drawings, for instance) and storage conditions (temperature range, whether the material is explosive or perishable, and so on).

2. Plant - This level contains the data for each branch or plant location within a certain company. The data important to Purchasing is stored at this level. Examples of this data are the maximum and minimum order quantities of a material and the reorder level. You access the plant data by entering the plant key.

3. Storage location - This level contains the data specific to a storage location. Stock levels are an example of the data maintained for each storage location. You access the storage location data by entering the plant and storage location keys.

This data structure facilitates the organization of material-related information within the entire enterprise. It prevents redundant storage of material data when the same material is used in more than one plant or stored at more than one storage location.

Suppose the same metal casting is stored at two different locations. The design and purchasing data for this material would be identical. However, the data on the stock levels at each location would differ.

What is a Material Type?

The material type identifies the characteristics of a material that are important with regard to Accounting and Inventory Management. A material is assigned a type when you create the material master record.

"Raw materials" and "finished products" are examples of material types. In the standard MM module, the material type for the former (ROH) denotes an externally procured (bought-in) material, whereas the material type for the latter (FERT) indicates that the relevant material is produced in-house.

The material type determines the accounts to be debited or credited when a material enters or leaves the stores/warehouse, or is used or consumed by a user department. It also determines whether numbers for materials are assigned by the system (internally) or by the user (externally).

Creating a Material Master Record

To create or maintain a material master record, proceed as follows:

1. From the system menu, first choose Logistics &#61614; Materials management &#61614; Material master, then Material &#61614;&#61472;Create (general).

2. If the material master record does not exist: Enter the industry sector in which the material is used (for example m for mechanical engineering) and the material type (e.g. roh for raw materials) in the relevant fields.

Enter the material number only if your enterprise uses external number assignment. Otherwise, the system assigns a number to the material automatically.

To create or maintain a material master record, proceed as follows:

1. From the system menu, first choose Logistics &#61614; Materials management &#61614; Material master, then Material &#61614;&#61472;Create (general).

2. If the material master record does not exist: Enter the industry sector in which the material is used (for example m for mechanical engineering) and the material type (e.g. roh for raw materials) in the relevant fields.

Enter the material number only if your enterprise uses external number assignment. Otherwise, the system assigns a number to the material automatically.

Displaying a Material Master Record

1. To view a material master record, proceed as follows: First choose Logistics &#61614;&#61472;Materials management &#61614;&#61472;Material master from the system menu. Then choose Material &#61614;&#61472;Display.

Vendor Master Data

Use

The vendor master database contains information about the vendors that supply an enterprise. This information is stored in individual vendor master records

Creating a Vendor Master Record

1. Choose Master data &#61614;&#61472;Vendor &#61614;&#61472;Centrally &#61614;&#61472;Create from the Purchasing menu.

2. Enter the purchasing organization and an account group. If you want to use another vendor master record as a reference, enter the account number of that vendor in the Vendor (Creditor) field (under Reference). Press ENTER .

One-Time Vendors

You can create a special vendor master record for vendors from whom you procure goods only once or rarely.

Displaying Stock Levels

There are two ways to display the stock level of a given material:

• Starting from the material master record

To view the stock level, choose Environment &#61614;&#61472;Stock overview while displaying the material master record.

• Starting from purchasing documents

While displaying purchase orders, outline agreements, RFQs, or quotations, choose Environment &#61614;&#61472;Material stocks to display the stock overview screen for a selected item.

Material Management

Table of Contents

Plant Maintain

Material Master - Introduction

Maintain the Material Type

Screens in Material Master

Block materials from inventory posting

Create Delivery Log - Material xxx is blocked

Maintain Storage Location

Block Storage Location from further posting

Accounting document number range for MM

Inventory Management

System Messages - M7 - Inventory Management and Physical Inventory

Inventory Posting

Inter Plant Purchasing (Plant A buys from Plant B)

Moving Average Price

Prevent Inventory Back Posting to Previous period

MMBE - Check the stock at the various storage location

Physical Inventory

Transfer PDC Data

Back to Top

Return to SAP Hints and Tips on Configuration and ABAP/4 Programming

Plant Maintain

Plant 0001 is the SAP default.

OX14 - Define Valuation Area (Tick one only- Once your system go live, no more changes)

Most company take the SAP recommended choice - Value Material Stock at Plant level

Value Material Stock at Plant or Company Level

o If you valuate material stocks at plant level, the plant is the valuation area.

o If you valuate material stocks at company code level, the company code is the valuation area.

o The decision you make applies to the whole client.

OX10 - Create / Change / View Plants

OVXB - Create / Change / View Division

OX18 - Assign Plant to company code

e.g. 0001 - 0001 - All Plants

Px1 - Plant Px1

Px2 - Plant Px2

OX19 - Assignment of company code to the Controlling Area

OB38 - Assign company code to Credit Control Area

OMJ7 - Assign business area to Plant/Valuation area and division

e.g. Plant Px1 - Business Area Bx1

Bx2

Assign Valuation area to the Business Area

.e.g. Valuation area Vx1 - Business Area Bx1

Business Area Bx2

OMS0 - Assign Factory Calendar to the Plant and Business Area

The plant plays an important role in the following areas:

• Material Valuation - If the valuation level is the plant, the material stocks are valuated at plant level. Each plant can have its own material prices and account determination.

• Inventory Management - The material stocks are managed within a plant.

• MRP - Material requirements are planned for each plant. Each plant has its own MRP data. Analyses for materials planning can be made across plants.

• Production - Each plant having they own production/planning.

• Costing - In costing, valuation prices are defined only within a plant.

• Plant Maintenance - If a plant performs plant maintenance planning tasks, it is defined as a maintenance planning plant. A maintenance planning plant can also carry out planning tasks for other plants (maintenance plants).

If you want to use the application PP (production planning) or product costing and job-order costing, you must set valuation at plant level.

The valuation level that you choose affects

• the maintenance of material master records

• theG/L accounts in which material stocks are managed

• the G/L accounts to which transactions are posted in Materials Management

Effect on the maintenance of material master records:

Depending on the valuation level chosen,

• you maintain accounting data in the material master record for each plant or for each company code

• you define a valuation price for the material in each plant or in each company code

Effect on G/L accounts:

If material stocks are valuated at company code level, all plant stocks of a material are managed in a joint stock account for each company code.

If material stocks are valuated at plant level, you can manage the material stocks for each plant in different accounts. For each plant, you can define a separate determination.

If several plants are to use account determination, you can group these plants in "Valuation and Account Assignment" Customizing.

Material Master - Introduction

The material master is the starting point for the rest of the modules.

What Material Types are there?

The material types that you use are configured in Customizing for the Material Master under Logistics Master Data : Material Master -> Material -> Control data -> Define material type attributes.

The following list shows you the material types contained, for example, in the standard SAP R/3 System, and what their different roles are:

DIEN (services)

Services are procured externally and cannot be stored. A material master record of this material type can always contain purchasing data.

FERT (finished products)

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

FHMI (production resources/tools)

Production resources/tools are procured externally and used in the manufacture of products. A material master record of this material type can contain purchasing data, but no sales data. It is managed on a quantity basis. Examples of production resources/tools are apparatus, equipment, and measuring and testing devices.

HALB (semifinished products)

Semifinished products can be procured externally (sub-contracting) as well as manufactured in-house. They are then processed by the company. A material master record of this material type can contain both purchasing and work scheduling data.

HAWA (trading goods)

Trading goods are always procured externally and then sold. A material master record of this material type can contain purchasing and sales data.

HIBE (operating supplies)

Operating supplies are procured externally and required for the manufacture of other products. A material master record of this material type can contain purchasing data but no sales data.

NLAG (non-stock material)

Non-stock material is material that is not held in stock because it is consumed immediately. (Office supplies such as stationary. You need to create purchase order and accounting document for payment but the stock balance is always zero as it is issued out immediately to the various department.)

ROH (raw materials)

Raw materials are always procured externally and then processed. Since raw materials cannot be sold, a material master record of this material type contains no sales data.

UNBW (non-valuated materials)

Non-valuated materials are managed on a quantity basis, but not by value.

VERP (packaging materials)

Packaging materials are used to transport goods and come with the goods free of charge. A material master record of this material type is managed both on a quantity basis and by value.

WETT (competitive products)

Competitive products have their own material master records created from the Basic Data view. The competitor's number, which is stored in the material master record, assigns the material to a particular competitor.

Maintain the Material Type

OMS2 - Material Type Maintenance - Create/Change/Display

Steps:-

• transaction OMS2

• click Change

• key in the Material Type you want to change e.g. FERT then hit enter

The Views belows allows you to choose the Views for each Material Type.

(Press the Page up/Page Down keys to scroll the views)

Screens in Material Master

• MM01 - Create, MM02 - Change, MM03 - Display and MM06 - Flag for deletion.

• MM04 - Display the changes done to the material master.

• MMAM - Change the Material Type. for e.g. from FERT to HALB

Configure the Material Master Screen MM01 / MM02 / MM03

OMSR - Assign the field to the field group

OMS9 - Maintain the data screen field

Unit of Measure

In the material master, there is a Units of measure button for users to store in the different conversion rate. This sample program (ZUNT) extract the data from the unit of measure conversion table.

In the Material Master the moving average price are affected by:-

• Goods Receipt for Purchase Orders

• Transfer from Plant to Plant

• Invoice Receipt

• Settlement

• Price Change

Common configuration changes-

• define new material group (OMSF)

• define new valuation class (OMSK) and automatic posting (OBYC)

• define new material account assignment group (transaction OVK5) and Customer/Material/Account keys (transaction VKOA)

Block materials from inventory posting

After blocking, when the user do a inventory posting, they will get this error message :- E: Material xxxxx has status Blocked for procmnt/whse

• Goto transaction MM02 - Purchasing View

• Type in 01 at the MM/PP status field and save it

Create Delivery Log - Material xxx is blocked

During the Create Delivery (VL01), SAP prompt you a log that Material xxx is blocked. During the Sales Order Create/Change for that material, there might be some update termination that causes the locked of the material

(Windows hanged or power failure). You can check using transaction SM12 - type an "*" at the User name field. Check whether the material is in the locked list. If it is in the locked list, asked the user to log out before you delete it from the locked list.

Maintain Storage Location

MMSC - Collective entry of Storage Location for a material.

Insert new or delete un-used Storage Location. Maintain whether the storage location was included or excluded from MRP run.

Block Storage Location from further posting

1. You can block the storage location of a material without affecting the rest of the location using the same material.

Create a Physical Inventory document for the storage location with transaction MI01

Select the Posting Block checkbox.

This would prevent transactions from occuring until you either post or delete the physical inventory document.

(There are no impact, unless you do a post difference for the physical inventory document.)

2. Another method is to rename the storage location name.

Go to transaction OX09

Edit -> Copy as (copy the original storage location to a new name, replacing the first character e.g. ZXXX)

Edit -> Delete (delete the original storage location)

Do the reverse if you want back the original storage location.

Accounting document number range for MM

Transaction OMW9

Document Type - Double click on desire transaction code to check the document type for number range.

(e.g. MR21 Document type - PR)

Financial accounting document type - Assign the document type to a number range and account type.

(e.g. PR - Account type allowed for posting will be MS)

• Double click on the document type PR.

• Assign an unique starting number range that was not used. e.g. 88

• Choose the Account type for Material and G/L account (MS)

• The rest of the fields are optional (you can leave it as blank)

SAP definitions for account type -

• A - Assets

• D - Customers

• K - Vendors

• M - Material

• S - G/L accounts

Number ranges for financial accounting document type - Assign the number range to the running number range.

No. Year (till) From number To number Current number Ext (no tick internal or tick external)

88 9999 8800000000 8899999999 Track by SAP Blank

Accounting document will be generated if there are stocks during price change, if you don't have any stocks, no accounting document will be generated as there are no inventory to revaluate for price differences.

Inventory Management

System Messages - M7 - Inventory Management and Physical Inventory

Configure the system message for Inventory Management. For every system message that appear, SAP allows you to control the response of the message. If you want to prevent the user from further entry for a particular message, you can change it to message category E - Error. W - Warning re-confirms the entry. The user have to hit the enter key again to confirm the entry.

Message Category

• - No message

• W - Warning

• E - Error message

Transaction

• OMCQ - M7 Inventory Managment and Physical Inventory

• OME0

o 06 Purchasing document

o SE External services : master data : service item

o ME Purchasing : general messages

Inventory Posting

• Goods receipts for Purchase Order/Production Order

o (You can define the screen layout by Movement Type using transaction OMCJ)

o 101 - Receipt for Purchase Order/Production Order

o 122 - Return delivery to vendor

o 511 - Receipt of delivery without charge (Free of Charge)

• Goods Issue

o (You can define the screen layout by Movement Type using transaction OMBW)

o 201 - Consumption for cost center

o 261 - Consumption for production order - (confirmation automatic posting - known as backflushing in SAP)

&#61607; Material backflushed = ( Production Order Quantity + Scrap ) / BOM Base quantity * Component quantity

&#61607; Usually, material backflushed is done at the first operations. Subsequent operations does not have any material backflushed, only activities cost.

&#61607; Which operations to backflushed is set in your routing. (CA02) In the routing click the button CompAlloc. Look at the column B and Oper. A tick under B indicate material backflushing.

• Transfer posting

o 301 - Transfer from one Plant to another Plant (Single Step)

o 309 - Transfer posting Material to Material (or known as Material Conversion)

o 311 - Transfer from one Storage Location to another (Single Step)

• MBST - Cancel/Reverse the Material Document

The cancel movement type usually is a plue one. e.g.

o 101 cancels movement type will be 102,

o 261 cancels movement type will be 262.

When you post a goods movement, the Valuation Class in the Material Master (accounting view) determines which G/L accounts are updated when a transaction relevent to valuation take place.

OMWB - Create Automatic Postings

• Click Account assignment

• Double click on the Transaction Desciptions and you can see which valuation class is tie to which G/L accounts.

OMJJ - Definition of New Movement Types. Allows you to control the movement type functions.

The followings are some of the movement type control :-

• Double click on the Transaction type to maintain the movement type control. e.g. print a material document after the user click save.

• Click on Short Text to maintain the movement type descriptions.

• Click on the Allowed Transaction to maintain which movement type can be used in which transaction code.

Inter Plant Purchasing (Plant A buys from Plant B)

Procedure Flow:-

• Buying Plant Create the Purchase Order type UB - Stock transport Order - transaction ME27

• Supplying Plant receive the Purchase Order and issue it to the transport warehouse once they have the required quantity - transaction MB1B - movement type 351 - Transfer posting to stock in transit from unrestricted use.

• Buying Plant receive the purchase quantity with transaction MB01 - Goods Receipt from Purchase Order.

Accounting document was created during the transfer posting - movement type 351.

Debit Buying Plant Inventory

Credit Supplying Plant Inventory

If there was a price difference (the same material have different price in the different plant), the lower price plant will be posted with the amount differences.

Example :-

Material Master - Costing View Material Price for Buying Plant 100

Material Price for Supplying Plant 150

The Accouting posting would be:-

Debit 12345 Buying Plant Inventory 100

Debit 67890 Price Difference for Stock Transfer 50

Credit 12345 Supplying Plant Inventory 150

The General Ledger Account Number was determine through the Material Valuation Class which was tied throught the Automatic Posting of Account Assignment. (Transaction OMWB then click Account Assignment)

Double click on the Description to check the General Ledger Account Number

Inventory posting BSX

Expense/revenue from stock transfer AUM

Moving Average Price

Generally all raw materials (ROH), spare parts (ERSA), traded goods (HAWA) etc. are assigned as moving average price (MAP) because of the accounting practice of accurately valuating the inventory of such materials. These materials are subject to the purchase price fluctuations on a regular basis.

The semi-finished goods (HALB) and finished products (FERT) are valuated with standard price because of the product costing angle. If these were to be MAP controlled, then finished/semi-finished product valuation would fluctuate due to data entry errors, production inefficiencies (higher cost) or efficiencies (lower cost). This is not a standard accounting and costing practice.

e.g. how SAP calcualte the moving average price

Goods Receipt for Purchase Order

Balance on hand quantity + Goods Receipts quantity

Balance on hand value + Goods Receipts value

New Moving Average Price = Total Value / Total Quantity

Invoice Receipt for Purchase Order

Invoice price more than Purchase Order price

• additional value add to Balance on hand value then divided by Balance on hand quantity

Invoice price less than Purchase Order price

• difference is deducted from the Balance on hand value (up to 0). The rest of the amount will becomes price variance. This will result in Balance on hand value is zero while there are Balance on hand quantity. If the Balance on hand value is enough to deduct, then the remaining value will be divided by Balance on hand quantity.

Prevent Inventory Back Posting to Previous period

This will prevent changes to the previous month Stock Values - MB5L - List of Stock Values:Balances

• transaction MMRV

• tick Backposting not allowed generally

• click Save

During year end, the Stock Account have to be bought forward using transaction F.16 - GL Account Carried Forward. If not, the Material and Stock Account shown in MB5L will not be equal for the new financial year.

You can check the General Ledger Stock Account with transaction FS10 - Display Balances.

In MM only two periods can be kept open at any point of time.

MMBE - Check the stock at the various storage location

You can run this program (ZMMBE) if the user want to check whether the Total Stock on hand quantity is correct. The program will retrieve the previous month closing balance and add or subtract every material movement from start to end of the month.

To change the Stock Overview:Basic List

• Goto transactions OMBG - Rules for Stock Balance Display

The default Display version for MMBE is 1, you can define additional version if required.

Thanks & Regards

Sreenivasulu P

[Former Member]

Hi Mukesh,

You can refer these docs also...

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/CAARCMM/CAARCMM.pdf

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MYSAP/SR_MM.pdf

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/LOMDMM/LOMDMM.pdf

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/PPMRP/PPMRP.pdf

You can get other related docs from this site

http://easymarketplace.de/online-pdfs.php

Regards,

SP.