SAP-MM

(MATERIAL MANAGEMENT)
Part-1
 SAP–MM (MATERIAL
MANAGEMENT)
Introduction to SAP (System application products in data processing)
SAP stand for system application products in data processing.
SAP is an ERP tools. (Enterprises resource planning).
SAP is a German software introduced in the year 1971 and implemented in the year 1972
by following 5 IBM engineers.
Wallen Reuther
HOPP
Hector
Plattner
Tschira
in SAP EURO’s currency is used.
What is SAP?
SAP is an ERP tool, application or leading software which is used to support each and every
business process of the company such as purchasing, material services, selling and delivery
goods to company’s customers, finance, manufacturing activities (converting to RM to final
products), logistics activities and warehouse management.
Why SAP?
SAP offers following advantages.
❖ It is Market leader in providing solution and services to every business requirement.
❖ The beauty of SAP is integration of modules.
❖ Data security.
➢ SAP will capture each and every transaction tacking place in the company from starting
to end.
❖ SAP will provide solution to all the department.
Why not SAP?
SAP suffers from following disadvantages.

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❖ High cost.
Who will use SAP?
SAP can be used all type of industries such as
❖ Pharmacy.
❖ Chemical industry.
❖ Construction industry.
❖ Engineering work and procurement companies.
❖ Automobiles.
❖ Banking.
❖ Insurance.
❖ Retail companies etc.
SAP will bring all the received department on single platform to do the business.
Modules in SAP: -
In SAP each object is called module.
Each and every business process of the company will be treated as module in SAP. In SAP
we have functional, technical and business modules.
The people who are working in functional modules are called functional consultants and for
this no coding knowledge is required.
The people working in technical modules like ABAP are called technical consultants or
developers and for this coding knowledge is required.
List of functional modules: -
❖ FI - Finance.
❖ CO - Controlling.
❖ MM - Material Management.
❖ QM - Quality Management.
❖ SD - Sales and Distribution.
❖ PP - Production Planning.
❖ PM - Plant Maintenance.
❖ PS - Project Systems.
❖ WM - Warehouse Management.
❖ HCM - Human Capital Management.
From technical side we have ABAP – Advance Business Application Programming and
BASIS module, SAP security etc.

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Roles and responsibilities of individual modules consultants: -
FI - Finance:
This module helps in company’s all financial activities such as.
➢ AP - Account payables,
➢ AR – Account receivables, and Taxations.
CO - Controlling:
This module helps in capturing cash flow of the company.
MM - Material Management:
This module supports all purchasing activities of materials and services, inventory activities
and invoice verification before making payment.
QM - Quality Management:
This module helps in quality (QC) check of company’s materials.
SD - Sales and distribution:
This module helps in all sales activities and delivery materials to customers.
PP - Production planning:
This module helps in all manufacturing activities of company’s materials.
PM – Plant Maintenance:
This module supports all maintenance activities of the company.
PS – Project System:
Mainly this module will used in EPC projects - Engineering works Procurement
constructions. This module capture projects budgets.
WM – Warehouse Management:
This module helps in storing company’s materials physically.
HCM – Human Capital Management:
This module helps in all HR activities.
ABAP – Advance Business Application Programming:
This module consultants will write new program to new data in SAP. This module
consultants are called developers.
What happen in real time projects: -
Once we receive requirement then we consultants we check solution in standard SAP and if
we got solution then we confiture (setting/design) as per client’s requirements. Once

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configuration is done then we consultant and clients will be testing and if it working fine
then will handover to clients. Clients will use to do regular business. If incase there is no
solution to client’s requirement then we consultants will approach technical consultant

ABAP with a requirement document called FSD – functional specification document, based
on FSD ABAP consultants will customize new program in SAP.
What is ERP?
ERP stand for Enterprises Resource Planning.
It an application or a tool which support each and every business process of the company.
In market we have many ERP tools such as,
➢ Oracle,
➢ JD Edwards,
➢ People soft,
➢ BAAN,
➢ SAP etc.
ERP can be used by small sector industries to large sector industries based on their business
size and strength.
Why ERP?
ERP following advantages
❖ It saves time and expenses
❖ It provides real time information whenever we required.
Why not ERP?
ERP suffers from following disadvantages.
❖ Sometime it is very difficult to map client’s requirement in ERP’s.
FSD – Functional Specification Document.
Under the heading we will learn how to operate SAP system as a beginner.
1. Landscape in SAP/server in SAP:
Server is computer or program or device that provides services to another computer program
and to its users.

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 Landscapes/server in SAP

Development Quality server Production

server server

Golden Testing Testing

clients clients clients
This server is
used to enter
This server is used Live Business

only for testing

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Squamate of server arrangement is called Landscape

1. Server in SAP

In server we have following servers.

❖ Development server
❖ Quality server
❖ Product server
❖ Sand box server – it used by consultants to learn to new things before providing solution
to clients and it is not mandatory in all the projects/companies.
❖ Ideas/Dummy server - it is used for learning SAP. It is also called as rental server.
Basic consultants will design server purchased from SAP any login issues approach basic
consultants.
1) Development server:
In development server we consultants we provide solution to client requirements. Every
development server will have one golden client and 1 or more testing clients (based on no.
of consultants). Golden clients and testing clients are just screen names available under
development server.
In golden clients of development server will be used to maintain solution for client’s
requirement.
In testing clients of development server will used to do testing for the solution provided by
consultant.
2) Quality server:
After providing solution in development server then those solutions will copy to quality
server and in quality server client will do testing and sometimes consultants also will
involve.
3) Production server:
In this server only clients will enter live business data.
Consultants don’t have access to production server and clients don’t have access to
development server.
1. Used new page icon in login pad to maintain server details. Server details will be given
by basic consultant based on project allocated to you. Once we save server details in logon

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pad system will add a server line under connection option which is used to login. Double
click on sever line to login.

2. Each and every screen of SAP will be identified with 3 digits numeric code called client.
Client 800 is designed by SAP standard which is used only for practice.

3. In real time projects we will use different client codes from 002 to 999 except 001 and
800, these client code will be decided by project manager and designed by BASIS
consultant. Some of the real time client codes are as below (just for idea/sample code).
Example purpose:

Realtime client examples

Servers Clients Project-1 Project-2 Project-3
Golden client 100 801 250
Development server
Testing client 101 802 251
Quality server 200 850 350
Production server 300 900 450

4. New password:
This option will be used to change password of SAP ID but will changing
password we have to remember following 2 terms.

❖ We can change password once in a day (24hours).

❖ System will not accept last 5 used passwords.
** Note – In real time projects server details and login credentials will give by basic
consultants. Basic consultants will help to change password or to unlock SAP if it locks
etc... if we enter wrong password for 3 times then SAP will get lock. In this case approach
institute for unlock.
5. SAP has given in default languages:

❖ EN – English
❖ DE – German
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6. Maintain user name and password to login.

7. When we login into SAP in any server system will open a default screen called “SAP
EASY ACCESS”. In this easy access both consultants and clients work based on server.

SAP easy access screen of production server will be used by clients to enter day to day
business activities and consultants will used the same in development server for testing
purpose.

In quality server easy access used by both clients and consultants only for testing.

8. Consultants will provide solutions to client’s requirement in development server –

golden client – IMG screen.

IMG screen for implementation guide.

9. We have 2 ways to enter any data in SAP. They are

➢ Path/Navigation (long route to enter data).

➢ T. Code / transaction code (short cut to enter data).

10. Navigation to IMG screen:

After login into golden client of development server Give SPRO T. code in command box
→ press enter → click on SAP reference IMG and system will display IMG screen where
all module consultants will work.

SPRO - SAP project Reference object.

11. We can open 6 screens with one login ID.

12. How to Log off SAP?

➢ Go to systems in menu bar → then click on Log off option.
➢ Or directly we can close the screen.
➢ Or type T. code - /NEX then press enter to log off.

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 Types of Data in SAP
Whenever we consultants receive the requirement from clients then we will divide those
requirements into following 3 types of data. They are:

Organisation data

3
Clients’
Types of Data’s Master data
requirement

Transactional data

Organization data:

Organization structure is always created by consultants in IMG screen of golden client –

development server and it will be tested in easy access screen of testing client – development
server.

Organization data is also called organization structure or enterprise structure.

Every organization will have a structure according to which entire business runs. Every
organization structure will have organization level with their own roles and responsibilities.

SAP MM will have followed standard organization structure.

➢ Alphanumeric.
➢ Non case sensitives.

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 MM Organization Data
This organization level will
1. Company (6 CHAR)
be created by FI consultants
2. Company Code (4 CHAR) in Realtime projects.

3. Purchasing organization (4 CHAR)

This organization levels will
4. Plant (4 CHAR) be created by MM
5. Storage Location (4 CHAR) consultants in Realtime
projects

Define company:
Company will be created by finance consultants in real time projects. Company is an
organization formed by individual person or group of people to do business in market.
Company accepts maximum length (6 CHAR)
Use below T. code or path to create company in SAP.
T. code- OX15
(OR)
Path:
SPRO→ IMG→ Enterprises structure→ definition→ financial accounting→ define
company→ enter→ go to new entries→
❖ Given company unique code (6 CHAR)
❖ Company name,
❖ Street,
❖ Postal code,
❖ City,
❖ Country (IN),
❖ Language (EN),
❖ Currency (INR),
❖ Press enters.
❖ Click on save icon to save new company in SAP system.
Note:
Use same T. code OX15 or the above path to create, edit, check and delete company.

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Define company code:
Each and every business of the company will be created as company code in SAP.
Company code is a legal entity with their own balance sheets and profit and loss A/c.
company code is the sub division of company.
All financial transactions maintained and saved under company code only and company
code will be created by FI consultants.
As we are non-FI consultants se don’t know how to figure FI setting so we will use SAP
standard company code 1000. In this 1000 company code SAP defined all FI setting for
non-FI consultants to practice SAP.
We can use standard company code 1000 or we can create new company code by copying
standard 1000. If we do copy then all the FI setting from 1000 company code will copy to
our own company code.
Use below T. code or path to copy company code.

OX02– create/edit/delete company code (FI will USE in projects)

EC01 – copy company code.
Path:
SPRO→ IMG→ Enterprises structure→ definition→ financial accounting→ Edit, copy,
delete, check company code→ double click on copy, delete, check company code line →
click on copy org. object icon→ then give FROM company code 1000 and give TO
company code (our own 4 CHAR code) → Enter→ click yes to copy G/L account → click
yes to change currency, maintain currency (Ex. INR) → continue for 4 times→ click NO to
copy number range→ continue→ click cancel(X) → click copy→ read the information and
continue→ Go back→ Double click on edit company code line→ click on position→ Give
your own company code→ Enter→ Double click on your company code→ maintain
company name, city, country, language, key then press enter→ click on address icon,
maintain company code address in detail (address will be given by clients in real time project
but in practice we have to maintain o assumption) → press enter and save the company code.
Maintain purchasing organization:
Purchasing organization will be created by MM consultants even real time projects.
Clients purchasing department will be created as purchasing organization in SAP system.
Purchasing department are responsible for purchasing material and services required by the
company.

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T. code – OX08
Path:
SPRO→ IMG→ Enterprises structure→ Definition→ Material management→ Maintain
purchase organization→ Enter→ Click on new entries→ Give your purchase organization
(4 CHAR), maintain description→ Press enter→ Save.
Define Plant:
Plant will be created by MM consultants but it will be used by entire logistics. Plant is place
where business happens or material manufacturing happens.
Whether it is a construction site, Brach, Metro station, manufacturing units, Depots will be
created as plant in SAP system by using below T. code or path.
T. code – OX10
Path:
SPRO→ IMG→ Enterprises structure→ Definition→ Logistics General→ Define, copy,
delete, check, Plant→ Define plant→ Press Enter→ Click on new entries→ Give your own
plant (4 CHAR), maintain plant name→ Press enter→ Click on address icon and maintain
plant address in details→ Press enters and save the plant.
Main storage location:
Storage location is the place where material is store physically inside the plant (within the
plant). We can have multiple storage location under one plant to store different types of
materials.
Use below t. code or path to define new storage location to the plant.
T, code – OX09
Path:
SPRO→ IMG→ Enterprises structure→ Definitions→ Material Management→ Maintain
storage location→ Enter→ Click on new entries→ Give storage location (4 CHAR),
maintain storage location→ Name of the storage location→ save.
Assignment of Organization Structure:
Under this heading will assign organization level to convert into organization structure.
Assign company code to company:
We can assign multiple company code under one company.
Path:
SPRO→ IMG→ Enterprises structure→ Assignment→ Financial Accounting→ Assign
company code to company→ Enter→ Click on position.

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Assign plant to company code:
We can have multiple branches.
Path:
SPRO→ IMG→ Enterprises structure→ Assignment→ Logistics General→ Assign plant
to company code→ Click on New Entries.
Assign Purchasing organization to company code:
If we Assign purchasing organization to company code then if will become central purchase
organization. It is responsible to buy material and services to all the branches.
Path:
SPRO→ IMG→ Enterprises structure→ Assignment→ Material Management→ Assign
purchasing organization to company code→ Enter→ Click on position.
Assign purchasing organization to plant (plant specific):
It we assign purchasing organization to pant then it will become plant specific purchase
organization. It is responsible to buy material and services to only assigned branches.
Path:
SPRO→ IMG→ Enterprises structure→ Assignment→ Material management→ Assign
Purchasing organization to plant→ Enter→ click on new entries.
How to check organization structure in single screen:
➢ Go to T. code EC01.
➢ Click on structure.
➢ Click on navigation then continue.
➢ Click CTRL+F→ give your Own.
➢ Company code→ press Enter.
➢ Click on your company code.
➢ Again, double click on your company code and check the organization structure.

Master data:

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Master data is a onetime activity created by clients in real time project in easy access screen
production server and we consultants have to do backend setting of master data in IMG
screen of development server – golden client.
The information of a material, vendor and customer maintained in SAP system is called
master data.

Types of master Data in SAP MM

In SAP – MM we have following master data’s

Material Master data

Vendor Master data

Purchasing info record (PIR)

Types of
Master Data’s
Source List

Quota Arrangement List (QAL)

Condition Master data (Pricing)

1. Material master data:

Material is one of the master data available in SAP MM.
Material is also called item, goods, products. The information of the material like material
description, material UOM material weight etc. maintained in SAP system is called material
master data.
Material is the first mater data available in MM.

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Why we create material in SAP system:
If we want to buy, sell the check the material stock status throw SAP
system then we have to create in SAP system.
Business requirement:
In real time project client deals with different types of material such as
raw material, semifinished, finished material, spares, consumables, packing material, food
material, operating material, trading material etc... we consultants have to provide solution
different types of material in SAP system.

Consultant role in material master:

Under this heading we will learn how to provide solution to client requirement in material
master, we will do these setting in IMG screen of golden clients – development server.
1. Define material type:
Material type differentiate the types of material in SAP system by generating material code
to every material. SAP has designed below standard types.
➢ ROH – Raw Material
➢ HALB – Semi finished material
➢ FERT – Finished Goods
➢ VERP – Packing Material
➢ ERSA – Spares
➢ FOOD – Food Material
➢ PIPE – Pipeline material
➢ PIEN – Services (In ECC version)
➢ SERV – Services (In S4 HANA)
➢ HAWA – Trading Material
➢ NLAG – Nonstock Material
UNBW – No valuated material:
We can use above standard material types or we can customise new material types by
copying standard.
Examples of material type codes customization in live projects:
➢ ZRM – Raw Material
➢ ZSFG – Semi finished good
➢ ZFG – Finished good

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➢ ZSPR – Spares
➢ ZCON – Consumables
➢ PIPE – Pipeline material
➢ SERV – Service material
➢ FOOD – Food Material
➢ ZPAK – Packing Material
➢ ZNVL – Non – Valuated material
➢ ZTG – Trading goods
➢ ZOTH – Other materials
➢ ZSCP – Scrap Material
➢ ZOM – Operation Material.
Use below T. code or Path to define new material type
T. code – OMS2 – Material type.
Path:
SPRO→ IMG→ Logistics general → Material Master→ Basic Setting→ Material Type→
Define attributes of material type→ Enter→ Click on Position→ Give standard material
type ROH for raw material→ Enter→ select ROH line→ click on copy as icon→ Give you
own material type (should start with Z or Y with 4 CHAR), maintain material type
description→ press enter, click continue and save the material type.
Note: Use same above steps to configure other material types.
Material type control material master types of control:
➢ It controls number range of material.
➢ It manages fields of materials.
➢ It controls views of material.

Define number range of material:

Number range will be used to identify materials in SAP system. Each material will have
unique code which will be used to buy, sell or to check material stock in SAP system. This
unique code will generate based on material type.
We consultant will create number ranges and it will be assigned to material type. Clients
while creating materials they will select material type, based on material type selection
system will generate material code.

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In SAP standards for each material type we can maintain 1 internal and 1 external number
range.
Internal means system will generate automatically within the range defined in SAP system
and while creating material if we are entering material code manually within the range
defined then it is called external number range.
Material number range length is 18 digits maximums.
Internal number range will accept only numeric and external will except alphanumeric.

T. code – MMNR
Path:
SPRO→ IMG→ Logistics - general → Material Master→ Basic Setting→ Material Type→
Define number ranges for each material type→ Press Enter.
Define field selection of material master:
Field selection will be used to manage field of material. Managing field is nothing but we
can make field mandatory, optional, display or we can hide the fields.
In SAP standard each material type should have one field selection to manage fields. SAP
has designed below standard field selections.

➢ ROH – Raw material field selections

➢ HALB – Semi finished material
➢ FERT – Finished material
And for remaining all other standard material type SAP is used ROH as standard field
selection.
We can use above standard field selections or we can customise new field selections by
copying standard. (Same like material type).
Use below T. code or path to define, manage and assign field selections to material type.

T. code – OMS9
Path:

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 SPRO→ IMG→ Logistic General→ Material master→ field selection→ Maintain field
selection for data screens→ Click on position→ Field reference ROH raw material
selection→ Enter→ Select ROH line→ Then click on copy icon→ Filed reference your own
field selection (4 CHAR) → Press enter→ Double clicks on your own field selection→
Click on field selection group in (contract icon) → Check the field name and close→
Manage the field and save it→ Go back→ Material type screen (OMS2) → Click on
position→ Give your own field selection→ Press enter→ Double click on own field
selection→ Assign field reference to change own field selection→ Press enter→ Then save
it.
Views of material master:
If any debt wants to use the material, then we have to inform system by selecting views.
SAP has designed below standard views to create material.
Views are nothing but departments available in the company/clients.

Views of Material Master

MM FI CO SD PP WM QM
Basic Data 1 Accounting 1 Costing 1 Sales Org 1 MRP 1 WH 1 QM
Basic Data 2 Accounting 2 Costing 2 Sales Org 2 MRP 2 WH 2
Sales general/plant
Purchasing MRP 3
data
Purchase order test Sales text MRP 4
Plant Data/Storage 1
Plant Data/Storage 2

Clients’ role in Material Master:

Under this heading we will learn how to create material manually but in real time
project clients will create the material and we consultants have to provide training along
with user manual.
User T. code- MM01 – Create material
Creation on Material with MM views
Path:

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SAP Easy Access→ SAP Manu→ Logistics→ Material Management→ Material Master→
Material→ Create (General) → Immediately→ Double clicks on Immediately→ Create
Material (Initial Screen).
1. Material:
In this field we have maintain material manually if we have using external number range or
else leave block it we have using internal number range.
2. Industry Sector:
In this field we have to select client industry.
Ex: Chemical industry, construction industry etc...
Click on down ▼ mark industry.
If our client industry not available in the list then we consultant can add new industry sector
by using below T. code or path.

T. code – OMS3.
Path:
SPRO→ IMG→ Logistics General→ Material Master→ Field selection→ Define industry
sector and Industry – Sector – Specific Field selection→ Press Enter→ Click on new
entries→ Give me Industry Sector (1 CHAR) → Industry Description our own industry→
Field reference A→ Then save it.
3. Materia type:
Own material type clicks on.
4. Copy from Material:
If we want create new material by copying exiting material code then in this field maintain
exiting material code.

Select view(s) → view select on 6 views (Basic Data 1, Basic Data 2, Purchasing, Purchase
order test, Plant Data/Storage 1, Plant Data/Storage 2) → Click on default setting→ Click
on Org. level→ Organizational level→ Give me your own plant and Storage location→
click on tick mark.
1. Basic data view:
Under this basic data we will maintain material general information which is applicable to
entire company as display below.
➢ Material description.

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➢ Unit of measurement.
➢ Material group.
➢ Old material number.
➢ Gross weight/net weight.
➢ Weight unit.
➢ Volume.
➢ Volume unit.
➢ Size/dimension.
➢ Packing material details.
1. Material description:
Material description is also called as short text in SAP. In this field we have to maintain
material name and it accept 40 CHAR.
2. Base unit:
Int this field we have to maintain unit of measurement in which material is measured.
Ex: kgs, Litres, EA, SQ. Ft. no’s, Bag, MT ETC… we consultant can add new units of
measurement to fulfil client requirement by using below t. code or path.
T. code – CUNI
Path:
SPRO→ IMG→ SAP NETWEAVER→ General setting→ Check units of measurement →
Enter→ Click on unit of measurement then click on create icon→ Give units of
measurement (3 CHAR), maintain commercial and technical same, maintain description→
ISO code double click→ Press Enter→ and save it.
3. Material group:
Material group is a sub division of material type. Material with same feature grouping
together is called material group.
In real time project we consultant have to add new material groups. Use below or path to
define new material groups.
T. code – OMSF
SPRO→ IMG→ Logistic- general→ Material master→ Setting for key fields→ Define
material group→ Enter→ Click on new entries→ Give your own material group (9 CHAR),
maintain description→ Press Enter→ Save.

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4. Old material number:
In this field we can capture client’s non-SAP material code just to identify materials in SAP.
This is not mandatory field.
5. Division:
This field we will discuss in SD module.
6. X-plant material status and valid from:
If we want to block the material from purchase then in this field maintain 01 – block for
procurement and maintain valid from date.
7. Gross weight/Net weight/weight unit:
In this field we will maintain weight of the material along with weight unit (Grams/KGS
etc…)
8. Volume/volume unit:
Volume will be used for liquid materials.
9. Size/Dimensions:
In this field we will maintain material size like height/width etc…
10. Packing material data:
In this field we have to maintain packing material details to pack main material. Packing
materials are like polytene, paper packing, wooden packing, steel packing, bag packing
etc… we have to create packing material in same t. code y using packing material type.
Press enter and go to purchasing view.
Purchasing view:
In this view we will maintain material purchasing information. This information belongs to
individual plant.
1. Base unit:
This field will copy automatically from basic data 1.
2. Order unit:
In this field we have to maintain unit of measurement in which material is ordering to
vender/market.
If order uniting base unit are different then system will ask conversion factory when we
press enter.
Ex: 1 dozed = 12 each
1 ton = 1000 kgs etc…

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If order unit and base unit are same then leave order unit field blank because it will copy
base unit automatically.
3. Purchasing group:
Purchasing group is also called as buyer group. The group of people from purchasing
department who are involved buying material from market is called purchasing groups.
In real time projects we consultants must add new purchasing groups to fulfil our client
requirement.
T. code: OME4
Path:
SPRO→ IMG→ Material management→ Purchasing→ create purchasing group→ Enter→
Click on new entries→ Give your own purchasing group (3 CHAR), Maintain description,
Telephone→ Press enters save.
4. Material group:
This field will copy automatically from basic data 1.
5. Auto PO:
In SAP we can create purchase order manually and automatically. If we want to create PO
automatically then first step is to activate this field in material master.
6. Batch management:
If we want batch number for the material then activate this field.

7. Purchasing value key:

7.1 1st Reminder/2nd reminder/3rd reminder:
If we want to send reminder to vendor for delivering material on time then in these field
maintain reminder days and with the help of ABAP consultants, we will design reminder
massage.
7.2 Underdel/ overdely/unlimited over-delivery tolerance:
If we want receive material quantity less then ordered quantity then maintain underdeliver
tolerance in %. If we maintain underdeliver tolerance than system will allow us to receive
material quantity less – then ordered quantity. If we want receive material quantity more
than ordered quantity then maintain overdeliver tolerance in %. If we maintain over delivery
tolerance than system will allow us to receive material quantity more then ordered quantity.
If we want receive material quantity more than order quantity without any limit than activate
unlimited over-delivery tolerance.

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7.3 Acknowledgment required:
If we want acknowledgment copy from the vendor for given material order then activate
this field.
➢ Reminders/tolerance and acknowledgment will be updated by maintaining purchasing
value key. We consultants can add new purchasing value key by using below path.
Path:
SPRO→ IMG→ Material management→ Purchasing→ Material Master→ Define
purchasing value key→ Enter→ Click on new entries→ Give purchasing value key (any 4
CHAR code), maintain reminder days, tolerance, activate acknowledgment as per client
requirement→ Press enter→ Save.
This purchasing value key we have select in every material if we required.
8. GR processing time:
In this field we have maintain no of days required time goods to storage location after GR
(Goods receipt) and quality check.
9. Source list:
If we want to assign fixed vendor to a material then activate source list and we will maintain
fixed vendor in 4th master data.
10. Manufacturing part number:
In this field we can maintain material model numbers.
11. Manufacturer:
In this field we can capture material manufacturer details and this is not mandatory field.
---------------------------------------Press enter----------------------------------------------
Purchase order text view:
In this view we can maintain any material information in the form of text.
Ex: Handle with care etc…
Plant data/storage 1:
In this view we will maintain material storage information in storage location under plant.
This information belongs to individual storage location available in the plant.
1. Base unit:
This field will copy automatically from basic data 1.
2. Unit of issue:
In this field we have to maintain unit of measurement in which material is issue from storage
location to internal departments to external customer.

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If unit of issue and base unit are different then system will ask conversion factor when we
press enter.
Ex: 1 dozed = 12 each
1 ton = 1000 kgs etc…
If unit of issue and base unit are same then leave unit of issue blank because it will copy
from base unit automatically.
3. Storage bin:
Storage bin the exact location in the warehouse where material is stored physically storage
bin will be created in warehouse module.
4. Batch management:
This field will copy from purchasing views.
5. Shelf-life data:
Under this heading we will maintain material maximum storage period minimum storage
period shelf-life expiry date (SLED) along with time unit.
Important note:
The date of production must be entered in the goods receipt.
--------------------------------------Press enters------------------------------------------
Plant data/storage 2:
Profit centre:
This field we will discuss in controlling module.
After maintaining all required data click on save icon to save the material and system will
generate material code at left bottom corner of the screen. We will use this material code for
further process like purchase, sales, stock checking etc…
Extension of material:
We will extend existing material code for following levels.
➢ View of extension
➢ Organisation levels extension
Extend material to accounting views:
Sometime in real time project client will miss the view while creating material in this case
we will use extension of material to views concept. Use below process to extend the material
to views.
➢ T. code – MM01
➢ Go to T. code MM01.

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➢ Give extension material code in material field.
➢ Press enters for 2 times.
➢ Select accounting views.
➢ Press enters.
➢ Give plant.
➢ Press enter again and maintain below information in accounting view and save the
material.
Accounting views:
1. Valuation class:
Valuation class will be used to link MM and FI modules. It is also helps us to valuates the
material.
2. Price control:
We can maintain 2 types of prices in material master.
➢ S – Standard price.
➢ V – Moving average price.
▪ Standard price is a fixed price maintained for only finished goods.
▪ Moving average price is a fluctuating price maintain for all material which are buying
from outsider (vender).
Extend material to new plant and storage location:
Under this heading we will learn how to extend material to new plant and storage location
if we have a multiple plants and storage location using same material then follow below step
to extend product to new org. levels.
➢ Go to T. code MM01.
➢ Give extension material code in material field.
➢ Press enters.
➢ Give same material code in copy from materials.
➢ Press enters.
➢ Select views.
➢ Give extension plant and storage location.
➢ Give copy plant and storage location.
➢ Press enters.
➢ System will copy data from copy plant to new plant in all the views if required edit the
information then press and save the material.

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 The data maintained in SAP in any module will store in database (DB2, ORACLE, HANE
etc..) in the form of tables and fields. We can check tables in blow T. code.

T. CODE OF MATERIAL MASTER

MM01→ Create/Extend material.
MM02→ Change/Edit material.
MM03→ Display material.
MM04→ Changes.
MM06→ Flag for Deletion/ Undeletion.
MM11→ Create schedule material.
MM12→ Change schedule material. TABLES – SE16N
MM13→ Display schedule material.
MARA→ Material general data.
MM14→ Changes schedule material.
MM16→ Flag for schedule material deletion. MARC→ Material purchasing data (plant data)
MM17→ Mass maintenance. MARD→ Material storage data.
MR21→ Change material price.
MBEW→ Material accounting data.
MMAM→ Change material type.
MMSC→ Extend material to storage location. MVKE→ Material sales data.
MM60→ Material List. MAKT→ Material description.

-----------------------------------Material Master Data completed------------------------------------

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 2. Vendor Master Data
Vendor is a supplier or seller or service provider. The information of the vendor
like vendor name, address, purchasing info, accounting information maintained in SAP
system is called vendor master data.
Vendor is an individual person or individual company or group of companies who sell
material or who provides service.
We will have different types of vendors like regular vendor, fixed vendor or one time
vendor.
Business requirement:
In real time project company deal with different type of vendors such domestics, foreign,
service, transportation, etc… we consultants have to provide solution to differentiate types
of vendors in SAP system.
Consultant role in vendor master:
Under this heading we will learn to provide solution to differentiate types of vendors in SAP
system.
1. Define vendor account group:
Vendor account group differentiate the types of vendors by generating number (vendor
codes) in SAP system. Each vendor will have a vendor code generates by SAP based on
selection of vendor account group.
SAP has defined below standard vendor account group.
0001and LIEF- vendor
Wed consultant can use below standards or we can customise our own vendor account
groups by copying standard.
Real time vendor account group examples:
o ZDMV – Domestic vendor.
o ZIV – Import vendor.
o ZSV – Service vendor.
o ZSCV – Subcontracting vendor.
o ZTRV – Transport vendor.
o ZOTV – One-time vendors etc…
Use below T. code or Path to define new vendor account groups.

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T. code – OMSG
Path:
SPRO→ IMG→ Logistics general→ Business partner→ Vendor→ Control→ Define
account groups and field selection (vendor)→ Enter→ Select 0001 line→ Click copy icon→
Give own vendor account group (4 CHAR) → General Data name description own account
name→ Press enter→ Double clicks on your own group→ Data retent. Levels purchasing,
vendor sub range relevant, plant level relevant tick→ Double click on general data→ Double
click on address→ Manage vendor field→ save it.
Note: Vendor account group length is 4 CHAR.
***Vendor master will be controlled by vendor account group.
Types of control by vendor account group:
➢ It controls number range of vendor.
➢ It manages field of vendor.
➢ It controls partner functions.
1. Define number range of vendor:
Number range will be used to identify vendor in SAP system. Each number will have their
own code and those code are generated by system based or vendor account group.
We consultants will create numbers and it is assigned to vendor account group. Client while
creating vendor they will select vendor account group based on this system will generate
code to vendor.
In SAP standard each vendor account group will have 1 internal or 1 external number range.
Internal number range means system will generate automatically and external means clients
have to enter manually while creating vendor but both should be assigned to vendor account
group (mandatory).
Vendor number range length is 10 digit maximum.
T. code: OMSJ
Path:
SPRO→ IMG→ Logistics general→ Business partner→ Vendor→ Control→ Define
number range for vendor master records→ Press enter→ Click on intervals→ Insert line→
Give serial number→ Then give from and to number range→ Press enter and save→ Go
back → Click on number range option→ Click on position→ Give your vendor group→
Enter→ Assign number range→ Save it.

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Define partner functions:
If multiple people or companies are involving in selling of a product then those multiple
people or companies are called partner functions. In standard SAP we have following
partner functions. We consultants have to confiture to our client.
➢ OA – Ordering address.
➢ GS – Goods supplier.
➢ IP – Invoice presented by.
➢ FA – Forwarding agent.
➢ VN – vendor**.
Path:
SPRO→ IMG→ Material management→ Purchasing→ Partner determination→ Partner
role→ Define permissible partner roles per account group→ Click on new entries→ Give
all your partner function→ And assign vendor account groups→ Press enter for every
partner function→ Save it→ Go back→ Go back→ Select partner setting in vendor master
record→ Define partner schemas→ Enter→ Click on new entries→ Give partners schemas
(4 CHAR), maintain discerption (e.g.:- vendor partner) → Enter→ Select the partner
schemas line→ Double click on partner functions in procedure→ Click on new entries→
Draw this box→ And save it→ Go back→ To vendor account group screen (OMSG) →
Click on position→ Give your vendor account group→ Enter→ Double click on your
vendor account group→ Assign your partner schemas in partner schema, purchase org
field→ Save it.
Note:
We can assign same partner schemas in all the vendor account groups
EVENT PURCHASING FINANCE CENTRAL (PUNCH. +FI)
CREATE VENDOR MK01 FK01 XK01
CHANGE/EDIT MK02 FK02 XK02
DISPLAY MK03 FK03 XK03
CHANGES MK04 FK04 XK04
BLOCK/UNBLOCK MK05 FK05 XK05
FLAG FOR DELETION MK06 FK05 XK06

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 Client’s role in vendor master
Under this heading we will learn how to create vendor master in SAP but in Realtime
projects clients purchasing dept/any end user will create vendor and we consultants will
provide training along with user manual.
Use below T. Code or path to create vendor in ECC servers.
T. Code - XK01
Path:
SAP easy access screen→ SAP menu→ Logistics→ Materials management→ purchasing→
Master data→ vendor - Central→ XK01 - create→ Press enters.
Vendor initial Screen:
Vendor: In this field we have maintain vendor code manually if we are using external
number range or else leave blank if we are using internal number range.
Maintain company code to add finance information
Maintain Purchasing organisation to add purchasing information.
Select vendor account group based on type of vendor we are creating.
---------------------------------------------Press Enter-----------------------------------------------------
Address Tab:
In this tab we will capture vendor name, address along with communication details. (This
information we will get from vendor in vendor registration form (VRF)). - Enter.
Control Tab:
In this tab we will maintain vendor GST number in Tax number 3 field.
Payment Transactions Tab: In this tab we have to maintain vendor bank account details.
Contact Persons:
In this tab we will maintain contact person details from vendor side. We can capture multiple
contact person details.
Accounting information Accounting:
In this tab we will maintain recon. Account. - 160000.
Payment Transactions accounting
Check Double Inv.:
If we activate this field then system check duplicate invoices.
Correspondence Accounting: ————-NA———
Purchasing Data Tab:

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In this tab we will maintain purchasing information from vendor.
Order Currency:
In this field we have maintain currency in which vendor is accepting the order.
Terms of payment:
In this field we have to maintain payment terms agreed with vendor.
Examples: 50% Advance payment and 50% delivery payment
100% on delivery
100% advance payment ETC …
We consultants can add new payment terms to fulfil clients’ requirements.
Path:
SPRO → IMG→MM →Purchasing →vendor master →Define terms of payment →Enter
→Click on new entries →Give payment terms (4 CHAR), Maintain description, No. Of day,
activate account type →Press Enter →Click on save icon.
Incoterms: Incoterms stands for international commercial terms. This helps us to know the
scope of delivery.
➢ EXW - Ex works
➢ FOB - free on board
➢ FCA - Free Carrier
➢ DDP - Delivered duty paid
➢ CIF - Cost insurance freight

Schema Group Vendor:

We will discuss this in 6th Master data.
Sales person/ Telephone:
In this field we have to capture sales person details from vendor side.
GR based Inv. Verification:
If we want to make the payment for only received goods then activate this field. If we
activate this field then system will allow to make invoice payment only for goods receipt
(GR) quantity.
Serv. Based Inv. Verification:
If we want to make the payment for only received services then activate this field. If we
activate this field then system will allow to make invoice payment only for received services.
Acknowledgement Required:

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If we activate this field then system will expect acknowledgement copy from vendor for
given orders.
Automatic PO:
If we want to create PO automatically then we need to activate this field (same like material
master).
Purchasing Group:
In this field we have select purchasing group.
Planned Deliv. time:
In this field we have to maintain no. of days taken by the vendor to deliver the product.
Partner Functions: In this tab system will copy partner functions from vendor account
group.
After maintaining all required tabs and fields click on save icon to save the vendor and
system will generate vendor code at left bottom of the screen.
Remaining T. Codes of Vendor:
➢ XK07 - Change vendor account group.
➢ XK99 - Mass maintenance.
➢ MKVZ - vendor’s list.
*** This above vendor master concept is replaced by business partner (BP) in S4
HANA.
Tables - SE16N
➢ LFA1 - Vendor general data.
➢ LFM1 - Vendor purchasing data.
➢ LFB1 - Vendor Company code data.
➢ LFBK - Vendor bank details.

-----------------------------VENDOR MASTER DATA COMPLETED------------------------

--

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 3. Purchasing info record (PIR)
Purchasing info record is also called as PIR or info record. It is used to capture purchasing
information of a vendor and material combination.
Possibilities of creating PIR:
1. We can create info record manually by using T. code ME11 or we can update info record
automatically by activating INFO UPDTATE check box in purchase order material data tab.
2. Info record can be created with material code or without material code but material
description and material group are mandatory.
Consultant role in PIR:
1. Define number ranges:
As we are aware info record can be creating with and without material code. We consultants
have to design solution to show difference between with and without material code info
records.
Number range will be used to identify PIR in SAP system. Every material and vendor
combination system will generate unique info record number.
When we are creating PIR with material code system will copy number from IL group if it
is without material code then system will copy number range from IN group, for both IL
and IN we can assign internal and external number range. (Some like material master)
T. code:
SPRO → IMG→ Material management→ Purchasing→ Purchasing info record→ Define
number range→ Enter→ Click on maintain groups→ Click on creating icon→ Give group
name (NR with material/NR without code,) Give FROM and TO number range for both
internal and external (if required) → Press enter → Save→ Go back→ Click CLTR+F→
Give number range (IL or IN) → Press enter→ Click on IL or IN→ Click on
element/group→ Search your number range group and double click on same group→ Save.
Define field selection for info record:
As discussion vendor field selection will be used to manage field of info record.
Path:

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SPRO→ IMG→ Material management→ Purchasing→ Purchasing info record→ Define
screen layout→ Enter→ Double clicks on ME11 line→ Double clicks on field selection
group→ Manage field of info record→ Go back 2 time→ save it.
Client’s role in PIR:
Under this heading we will learn how to create PIR manually and in real time project client
and users will create.
Use T. code ME11 or below path to create PIR manually.
Path:
SAP easy access screen→ SAP menu→ Logistic→ material management→ purchasing→
Master data→ Info record→ ME11→ Create→ Enter.
PIR initial screen:
1. Maintain vendor.
2. Maintain material code or we can leave blank if we want to create PIR without material
code.
3. Maintain purchasing organization.
4. Maintain plant.
5. Info record:
In this field we have to maintain info record number manually if we are using external
number range or else leave blank internal number range.
6. Info category:
In SAP standard we can create info record in following categories.
➢ Standard.
➢ Subcontracting.
➢ Pipeline.
➢ Consignment.
As of now select standard category.
----------------------------------------PRESS ENTER------------------------------------------------
PIR- General data tab:
1. Short text – If we are creating info record without material code then in this box, we
have maintained material description manually.
2. Material group – In this field system will copy material group from material master
and if we are creating info record without material then in this field, we have to maintain
materials group manually.

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NOTE: These above 2 field will copy automatically to info record screen if we are
creating info record with material code.
1. 1st,2nd,3rd Rem./Exped:
In this field system will copy data from material master if required we can edit here which
will copy to purchase order automatically.
2. Sales person and telephone:
In this field system will copy data from vendor master if required we can edit here which
will copy to purchase order automatically.
3. Order unit and conversion:
In this field system will copy data from material master if required we can edit here which
will copy to purchase order automatically.
4. Origin data:
Under this heading we will capture material origin certificate details given by vendor.

5. Available from and to:

In this field we will maintain info record valid dates.
6. Regular vendor:
If this info record vendor is a regular supplier, then activate this check box to inform system.
If in case regular vendor is not available then we will reach prior vendor, maintain prior
vendor. Press enters.

Purchase org. Data 1 Tab:

❖ Pl. Deliv. Time:

In this field system will copy data from vendor master if required we can edit here which
will copy to purchase order automatically.
❖ Purch. Group:
This field will copy from material master
❖ Underdl., Overdl., unlimited delivery tolerance and acknowledgement required:
In this field system will copy data from material master if required we can edit here which
will copy to purchase order automatically.

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 ❖ GR - BSD INV:
This field will copy from vendor master.
❖ Tax code:
In this field we have to maintain tax code to calculate tax on purchase. If we miss to select
tax code here then we can select in purchase order.
Tax codes will be created by FI consultants in T. code FTXP.
We can select VA or V0 tax codes for practise.
❖ Condition:
Maintain net price
❖ Text Tab:
In this tab system will copy text from material master purchase order text view. If required
we can maintain text here also which will copy to purchase order.
After maintain all reward fields and tabs, click on save icon to save info record and seem
will generate info record number at left bottom corner of the screen.
PIR T. codes:
➢ ME11 - Create info record.
➢ ME12 - Change info record.
➢ ME13 – Display info record.
➢ ME14 – Changes.
➢ ME15 - Flag for deletion.
➢ MEMASSIN - Mass maintenance.
➢ ME1M - List of info records by material.
➢ ME1L - List of info records by vendor.
➢ ME1W - List of info records by material group.
❖ PIR Tables - SE16N.
❖ EINA - Info record general data.
❖ EINE - Info record purchasing data.

------------------------PURCHASING INFO RECORD TOPIC COMPLETED----------------

---

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 4. Source list

Source list is one of the master data available in SAP MM. it used to maintain fixed vendor
to a material. Once source list is maintained then we have to buy material from source
vendor only.

Source list process flow

Source list

Activate Maintain
source list source list

Consultant Client/Easy

/IMG level access

Material
Plant level
level

Activate source list by consultant:

If consultants activate source, then it will be activated at plant level and it is applicable to
all the material available in the plant.

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T. code-OME5.
Path:
SPRO→ IMG→ Material management→ Purchasing→ Source list→ Define source list
requirement at plant level→ Enter→ Click on position→ Give your plant→ Activate source
list (if required) →Save it.
Activate source list by client:
Client can activate source list only for required material in material master purchasing view.
T. code:
➢ MM01→ New creation material.
➢ MM02→ Existing material.
Client’s role:
Maintain source list:
Under this heading we will assign fixed vendor to a source activate material.
T. code→ ME01.
Path:
SAP easy access screen→ SAP menu→ Logistic→ Material management→ Purchasing→
Master data→ Source list→ ME01-maintain→ Press enter→ Give source list activated
material code→ Give plant→ Enter→ Maintain source valid date→ Who vendor source
list→ Give own plant→ Enter→ And save lt.
Source list t. code:
➢ ME01→ maintain/change source list.
➢ ME03→ Display source list.
➢ ME04→ Changes.
➢ MEOM→ List of source list by material code.
Tables-SE16N
EORD→ Source list.

Page 38 of 191
----------------------------------SOURCE LIST TAPIC COMPLETED----------------------------
---

5. Quota arrangement list (QAL)

This is one of the master data available in SAP MM. if our client is diving bulk quantities
into ratios and ordering to multiple vendors then it is called quota arrangement list in SAP.
Quota arrangement t. code’s:
➢ MEQ1→ maintain/change QAL.
➢ MEQ3→ Display QAL.
➢ MEQ4→ Changes.
➢ MEQM→ List of QAL.
Tables - SE16N
➢ EQUK→ Quota header table.
➢ EQUP→ Quota item table.

----------------------------------QUOTA ARRENGEENT LIST COMPLETED------------------

---

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 What is Material management (SAP-
MM)
SAP MM is the short form of SAP materials management module. SAP MM is one of the
functional modules which supports all the aspects of material procurement i.e., purchasing,
stock handling, i.e., inventory management (IM) and logistics invoice verification (LIV).
MM is the backbone of logistics.
MM modules integrates with other modules such as SD, FI, CO, QM, PP, PM, PS, and WM.
MM as a process ensure no shortage of material or any gaps in supply chain of the company.
The business process or procurement process of MM is P2P cycle.
P2P stands for procurement 2 pay.

MM integrates with other Modules

PM – Plant PS – Project
PP – SD – Sales &
Maintenance System
Production Distribution
planning

Material
Management

Page 40 ofWM
191 –
QM – Quality FI - Finance Warehouse
Management management
 CO -
Controlling

P2P – PROCUREMENT 2 PAY

Any dept required
Contracts
material/services

Purchasing RFQ – Price

Source Quotation
requisition Request for Comparison
Determination
(PR) Quotation Statement

FI Purchase
Invoice Goods Receipt
Payment
Receipt (IR) Note (GRN) Order
(PO)

OK Not OK

Store/WM Quality
Reject
Check

P2P overview
Procurement process starts with purchase requisition and end with goods receipt and
payments.
Whenever any department requires materials or services to fulfil their business needs then
they will raise a request document called purchase requisition (PR). PR is an internal
Page 41 of 191

9
purchasing document which will be used to request materials to purchasing dept. once
purchasing dept receives the request then will search vendor (supplier) in market called
source determination. Once we get the source then we will raise price request to vendor
called RFQ (Request for Quotation). RFQ will be created to vendor to known the price,
terms and condition offered by vendor. Vendor will submit price, terms and condition in the
form of a document called quotation. Once we receive quotation from multiple vendors then
purchasing department will compare the prices (Quotations) to finalize the vendor. The
process of comparing prices and finalizing vendor is called price comparison statement.
Once vendor is finalized then the purchasing department will raise order called purchase
order (PO).

P2P overview
Purchase order is an order document issued by purchasing department to the vendor for
procurement of material and services. In the PO we will maintain material requirement, qty,
delivery date, price and other terms and conditions. Once vendor receives the order than
based on delivery date, he will deliver the goods to company and company will perform
goods receipt (GR). Once company receives the material physically then goods receipt will
be post in SAP. After GR immediately our quality team will check the quality of material if
everything looks ok then we will move to storage location or if is not ok then will reject the
stock. Vendor will submit invoice to company for payment called invoice receipt (IR).
Company once receives the invoice then they will compare invoice with goods receipt
document and purchase order (3-way match) if all are matching then they will submit the
invoice to FI department for payment. Verifying invoice before making payment is called
logistic invoice verification.

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 Terms of Material Management
MM deal with following terms

Purchasing

Terms of Inventory Management

MM (IM)

Logistics invoice
verification (LIV)

Components of MM along with T.

codes

Components T. codes
Purchase requisition (PR) ME51N
RFQ ME41
Quotation ME47
Price Comparison Statement ME49
Purchase Order ME21N
Goods Receipt MIGO
Invoice Receipt MIRO

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 Purchasing
Purchasing is one of the components in SAP MM (MM – PUR). Purchasing concept will be
used to procure materials and services from vendor/supplier to fulfil business requirements.
The process of buying materials and services from vendor or dealers is called purchasing.
Types of purchasing:
We have below different types of purchasing in SAP MM:

Standard procurement
Types of
purchasing
Special procurement

Standard Procurement
Procurement process is used to procure materials and services and required by the company
from external vendor. In this standard procurement company orders goods to vendor and
vendor supplies the good to company (one to one relation). Standard procurement process
low is as below:

Purchase Purchase Create RFQ Price Create PO

Quotation
requisition requisition wrt PR comparison wrt PR
release s

Page 44 of 191 PO
Release
 Invoice
GR WRT PO
receipt

**RFO/Quotation/PC are not mandatory in SAP, project to project requirements will

change.
*WRT – With reference to.

Types of purchasing document

Internal Purchase Requisition (PR)

Purchasing
Document
RFQ – Request for Quotation
External

PO – Purchase Order

Contracts

Scheduling Agreement

PR – purchase Requisition
PR is the first purchasing document in SAP purchasing component.
It is an internal document.
If any department in the company required material or services then those departments. will
raise request to purchasing department in the form of a document called PR – purchase
requisition to procure the same in market.

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PR can be standard, Third party, Subcontracting, Stock transfer order (STO), Consignment
and services.

PR – Business Requirements
Project Requirement:
In real time project client’s internal departments will create purchase requisitions. We
consultants have to provide solution to differentiate department wise PRs in SAP system.
Example HR department, Sales, Purchasing, Stores, Design, Manufacturing, Maintenances
Et…

PR – consultant role
Under this heading we will learn consultant’s role in PR. They are.
➢ Define document type.
➢ Define number range to PR document type.
➢ Field selection of PR.
➢ Item categories.
Define document types:
Document types differentiates types of PR’s SAP by generating PR number to each PR.
SAP as defined standard document type.
NB – Standard purchase Requisition.
We consultants may use standard document type NB or we can customize types by coping
standard. In real time project we will customize below document types and these are just
examples. Project to project requirements may get change but the process is same.

PR – consultant role

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We consultants can use standard document type NB or we can customize new document
types by coping standard. In real time project we will use below document types and these
are just examples:
❖ ZSPR – Sales PR’s.
❖ ZHPR – HR PR’s.
❖ ZMFP – Manufacture PR’s.
❖ ZSTR – Store PR’s.
❖ ZMNT – Maintenance PR’s.
❖ ZPPR – Purchasing PR’s Etc.

Path:
SPRO→ IMG→ Material Management→ Purchasing→ Purchase Requisition→ Define
document type→ Enter→ Click on position→ Select NB line→ Click on copy icon→ Give
your own document type (4 CHAR) → Maintain description→ Press enter→ Then click
copy all→ Continue and save it.

PR – Consultant Role
Document type controls PR**
Types of controls by document type:
❖ It controls number range of PR.
❖ It manages fields of PR.
❖ It allows item category.
Define number range for PR:
Number range will be used to identify PRs in SAP system. In SAP standard we can create
and assign internal and external number range for each document type. (Same like material
type).
PR number range length is 10 digits.
T. code – OMH7.
Path:
SPRO→ IMG→ Material Management→ Purchasing→ Purchase Requisition→ Define
number range→ Enter→ Click on change intervals→ Insert 2 lines→ Give serial number→

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Maintain from and to number range→ For both internal and external→ Press enter→ Save
it→ Go back to PR document type screen→ Enter→ Click on position→ Give your own
document type→ Enter→ Assign serial number range→ press enter and save it.
Define field selection of PR:
As we are aware field selection will be used to manage fields of PR. In SAP standard each
document type will have one field selection.
SAP has defined standard field selection NBB for PR. We can use standard field selection
or we can customize our own based on document type. (If we customize document type then
customize field selection also).
Document type+ number range (inter/external) +field selection+ item category = consultant
role in purchasing.
Path:
SPRO→ IMG→ Material management→ Purchasing→ Purchasing requisition→ Define
screen layout at document level→ Enter→ Click on position→ Give standard field
selection (NBB) → Select NBB line→ Click on copy icon→ Give your own field selection
(4 CHAR) → Maintain description→ Then press enter→ Double click on your own field
selection→ Double click on filed selection group→ Manage field of PR→ Then go back 2
times→ And save it→ Then go back define document types screen→ Enter→ Click on
position→ Give your own PR document type→ Enter→ Assign your own field selection→
save it.
Item category:
Item categories will be controlled by document type. Item category differentiates types of
procurement in SAP system. SAP has designed below standard item categories for purchase
and we consultant don’t have any option of adding new item categories.
Types of item category:
❖ Blank – Standard.
❖ S – Third Party.
❖ L – Subcontracting.
❖ U – stock transfer order (STO).
❖ K – Consignment.
❖ D – Service.
Structure of purchasing documents:
All the purchasing documents in SAP divides into multiple structures. They are:

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❖ Header data.
❖ Item overview.
❖ Item data.
The data maintained at header level is applicable to whole document.
In item overview we have to maintain list of materials to be procured.
The data maintained at item level is applicable only to particular lines items. Material to
material item data will be different, for every material we need to maintain item data.
Client role in purchase requisition:
Under this heading we will learn how to create purchase requisition manually. But in real
time project client internal department will create the PR we consultant train them.
Creation purchase requisition manually.
T. code – ME51N.
Path:
SAP access screen→ SAP Manu→ Logistics→ Material Management→ Purchasing→
Purchasing Requisition→ ME51N→ Create→ Enter→ Select Document type.
PR item overview:
Under this heading we will add all required materials, quantity along with below
information.
1. Item:
In this field system will generate line-item serial no’s automatically (ex: 10,20,30…)
2. A- Account assignment category:
If we are procuring materials for direct consumption (use) then we have to maintain account
assignment category. Please find below are few standard account assignment categories.
✓ Assets.
✓ Sales order.
✓ Third party.
✓ E- customer individual requirement.
✓ F- Order.
✓ K- Cost center.
✓ N- Network.
✓ P- Project.
✓ Q- Project, makes to order.
As of now leave this field blank because we are creating stock PR.

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3. I- Item category: Maintain item category (blank standard).
4. Maintain required material code.
5. Short text: In this field system will copy material description from material master.
6. Maintain PR Quantity.
7. UOM- Unit of measurement:
In this field system will copy UOM from material master basic data.
8. Delivery Date:
In this field we have to maintain material required date, if we leave this field blank then then
system will take PR creation data as delivery date.
9. Material group:
In this field system will copy material group from material master.
10. Maintain plant and storage location.
11. purchasing group:
In this field system will copy purchase group from material master.

PR header data:
The data maintain in header level is applicable to entire purchasing requisition.
Tab 1- Text tab:
In this field we can maintain any PR information (or) instruction in the form of text.
PR item data:
Item data will be maintained for every material line available in PR item overview.
1. Tab 1: - Material data:
In this tab we can check material details.
2. Tab 2: - Quantities & Dates:
In quantity, quantity ordered, open quantity.
In this quantities field we will maintain required quantity or it will copy from item overview.
If we convert PR into PO then PO quantity will get update in quantity ordered field
automatically and remaining quantity of PR after order will get update in open quantity field.
Closed:
If we want to close the purchase requisition line item from purchase then activate this filed
manually.
3. Tab- 3: -Valuation Tab:
1. valuation price:

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