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    MM Master Data PR

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    excelhelpline
    The document discusses key concepts in SAP's Materials Management (MM) module including: 1. MM uses master data and transaction data to manage the procurement process from requisition to invoice payment. 2. Master data includes material, vendor, source list, and purchasing info records which provide key information for transactions. 3. The procurement process flows from requisition, to vendor selection, purchase order, goods receipt, and invoice verification. 4. Additional concepts covered are request for quotation (RFQ), quota arrangement, and release strategy to control document processing.

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    MM Master Data PR

    Uploaded by

    excelhelpline
    191 views40 pages
    The document discusses key concepts in SAP's Materials Management (MM) module including: 1. MM uses master data and transaction data to manage the procurement process from requisition to invoice payment. 2. Master data includes material, vendor, source list, and purchasing info records which provide key information for transactions. 3. The procurement process flows from requisition, to vendor selection, purchase order, goods receipt, and invoice verification. 4. Additional concepts covered are request for quotation (RFQ), quota arrangement, and release strategy to control document processing.

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    Mm Master Data Pr

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    The document discusses key concepts in SAP's Materials Management (MM) module including: 1. MM uses master data and transaction data to manage the procurement process from requisition to invoice payment. 2. Master data includes material, vendor, source list, and purchasing info records which provide key information for transactions. 3. The procurement process flows from requisition, to vendor selection, purchase order, goods receipt, and invoice verification. 4. Additional concepts covered are request for quotation (RFQ), quota arrangement, and release strategy to control document processing.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    191 views40 pages

    MM Master Data PR

    Uploaded by

    excelhelpline
    The document discusses key concepts in SAP's Materials Management (MM) module including: 1. MM uses master data and transaction data to manage the procurement process from requisition to invoice payment. 2. Master data includes material, vendor, source list, and purchasing info records which provide key information for transactions. 3. The procurement process flows from requisition, to vendor selection, purchase order, goods receipt, and invoice verification. 4. Additional concepts covered are request for quotation (RFQ), quota arrangement, and release strategy to control document processing.

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    MM Configuration Master Data and PR

    Objective To understand MM Module data flow MM Module Master Data Requisition RFQ Quotation Release Strategy
    1

    MM Module Data flow


    Purchase order Invoice

    Determine Requirements

    Invoice verification

    Plan Rqmts.

    MM
    Goods receipt and 6 inventory management
    Materials mgmt

    Source determination

    Order follow-up

    Purchase order

    3 4 Order processing

    Vendor selection

    Data flow ..contd..


    1.MRP run triggers the requirements Purchase requisition is released 2. If quota is used, source is identified 3. vendor is selected 4. Prepare Purchase Order 5. Follow up with vendor for supply 6. Receive goods 7. Receive Invoice and pay vendor
    3

    Data in SAP
    We have seen the data flow in MM, to perform those activities, certain data are required. Lets discuss about the data before we go to the MM specific master data.

    Data in SAP
    there are two important types of data in SAP Master Data Transaction data

    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 Source list Quota arrangement

    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


    Following are the MM module specific master data. Material Master Vendor Master Source List Quota arrangement Purchasing Info record Purchasing group

    Material Master
    Material master contains entire information about the material related all department of an organization. Purchasing related information are stored in a purchasing view.

    Material master - Purchasing


    Purchasing view of material master specifies Person responsible to procure Base unit of measure Plant specific material status GR processing time Use of quota arrangement Use of source list Batch Management

    10

    Vendor Master
    Vendor master contains all the information required to do business with a vendor. Name and address Bank details Contact person Payment terms

    11

    Vendor Master Record


    General data
    Account number Description Address

    Purchasing data
    Purchase order currency DM Inco terms

    Accounting data
    Control account Terms of payment Bank details

    Transaction figures

    Bus. volumes 1994 Bus. volumes 1995

    Roles of a Vendor
    Bank
    Purch. Purchase order

    Order Recipient

    Payment

    Payee

    Vendor
    Material

    Invoice

    Invoicing Party
    Purc. order Invoice

    Goods Supplier
    Goods receipt

    ? =
    Invoice verification

    Source List
    List of available sources of supply for a material and plant combination. It facilitates the Determination of source. Automatic assignment of source to the purchase requisition Source list contains validity period for each vendor.

    14

    Source List
    Manual maintenance Maintenance from outline agreement Maintenance from purchasing info record Automatic generation

    Default source of supply in requisition via source determination Check in purchase order + requisition for admissibility

    Source determination
    Following is the order of priority to search the source. 1. Quota arrangement 2. Source List 3. Purchasing Info record / outline agreement.

    16

    How to Determine the Source?


    1
    60% 60%

    Quota arrangement

    40% 40%

    ?
    Vendor

    Source list?
    Source list

    Purchase requisition

    Agreement item Fixed vendor

    Outline agreement?

    Purchase requisition

    Agreement item

    Info record
    piece % Condition $

    Purchase requisition

    Fixed vendor

    Quota arrangement
    Quota arrangement helps to automatically identify the vendor and allocate the quantities to the vendor. It contains Vendor Quota % Min / Maximum lot size Validity period of quota

    18

    Quota arrangement -calculation


    Vendor will be determined on the basis of lowest rating result of the following formula Rating = Base qty +Quota allocated qty -------------------------------------------Quota

    19

    Base quantity & Prerequisite


    Quota base quantity is to regulate the quota arrangement without changing the quota. Prerequisite:Quota usage must be maintained in the material master purchasing view

    20

    Purchase info record


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

    21

    Purchasing Info Record Data


    General data Vendor data Origin data Order unit Texts

    Control data Delivery time Minimum quantity Tolerances

    Prices and conditions Gross price Discount Freight Price history Ordering statistics Change history

    Purchasing group
    Purchasing group is responsible for specific purchasing activities. It represents buyer It is used for reporting

    23

    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

    24

    Item category
    Item category controls Requirement of material number Account assignment Whether to place in stock or not Requirement of GR / IR

    25

    Item Category
    Optional

    Items / item category

    Stock material Consumable material

    Single/multiple account assignment Mandatory

    Standard item Consignment item Text Third-party

    - Cost centre - Project - Sales order - Asset

    Account assignment
    Account assignment will directly debit the cost of procurement to those object. E.g. If the account assignment is F to indicate production order, cost of procurement will be debited to the production order.

    Account categories
    A C F K P X U Asset Sales order Production order Cost centre Project All auxiliary account assignments Unknown account assignment

    Account Assignment
    Stock material Consumable material

    with material master record

    Without material master record

    With material master record

    Account assignment Automatic account assignment


    Data from material master record

    With account category

    Enter account category Manual account assignment


    User must enter data

    Consumption account Stock account Asset account

    How to Create a Purchase Requisition


    INDIRECTLY
    MRP - reorder level Networks- forecasting Plant maintenance orders

    MANUALLY
    Dep. 1 Dep. 2

    Purchase requisition

    Processing PR
    MRP Planned Order Release Procedure Identify Supplier (Automatically) Allocate and Process Requisition Purchase Order Release Order Purchase Requisition Manual Creation

    RFQ

    RFQ (Request for quotation)


    Quotation is used in purchasing to compare different vendors before placing an order. It contains entire information similar to PO.

    32

    Structure of an RFQ
    Request for quotation (RFQ)
    Header Messages Vendor Header Texts Items Quotation deadline

    Delivery schedule 1.2 2.2 10.10 10 pcs 11.00 50 pcs

    Statistics Texts Changes

    Processing Quotations
    Enter price and pricing conditions
    Vendor A Quotation for RFQ 1 Item 10 Gross price:200/t Discount: $40 Vendor B Quotation for RFQ 2 Item 10 Gross price:200/t Surcharge: 20% Vendor C Quotation for RFQ 3 Item 10 Gross price:200/t Fixed costs: $50

    Compare quotations using price comparison list


    Steel 2 t Price Quotation 1 Quotation 2 Quotation 3 Mean value quotation 160/t 220/t 250/t 263/t

    Create info record or reject quotation


    Vendor A - Order Mat. Qty Price Steel 2t 160/t Vendor C, B - RejectionThank you for your offer. Unfortunately, we cannot place an order at this time .....

    Release Strategy
    Release strategy helps to control further processing. Based on conditions, different person or department can be authorized to release in sequence It can be applied for PR, RFQ and for PO. Item level release can be applied for PR It can be with or without classification

    35

    Release Procedure
    Release Conditions Value Material Group Plant Does a Strategy Apply? Release Strategy Who is Authorised to Release? In what Order must the Releasing Occur? What is the Release Indicator? Who can do what?

    Release Indicator Released/Blocked for Ordering Released/Blocked for RFQ Fixed for MRP What can the Requisition be Released to?

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

    Release Procedure W/out Classification


    Release Conditions Value Material Group Account Assgt. Category Plant Does a Strategy Apply?

    Release Strategy

    Release Procedure With Classification


    Release Group Requisitions Other Purchasing Documents? Release Conditions Characteristics in a Class (Classification System) Any field in the Document

    Does a Strategy Apply?

    Release Strategy

    Releasing Requisitions
    Blocked Purchase Requisition

    Single Release

    N Collective (Multiple) Requisition Release

    Individual Requisition Release

    Purchasing

    Summary
    You must have understood MM Module data flow MM Module Master Data Requisition RFQ Quotation Release Strategy
    40

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