Presentation on theme: "Introduction SAP R/3 – MM"— Presentation transcript:
1 Introduction SAP R/3 – MM Dr. Djamal ZianiKing Saud University
2 ERP-Software: SAP R/3 Sales and Financial Distribution Accounting MaterialManagementControllingThe SAP R/3 is mainly structured in modules:The top level are functional modules.In this slide green modules belong to Logistics. These are: SD (Sales and Distribution), MM (Material Management), PP (Production Planning and Controlling), QA (Quality Assurance), PM (Plant Maintenance).The accounting modules are red: FI (Financial Accounting), CO (Controlling, Cost Accounting), AM (Asset Management), PS (Project System).Human Resource Management is the yellow module.OC means office communication like ing.IS stands for Industry Solutions. These are branch-specific packages (e.g. automotive, retailing, oil industry).Currently, HR is the only module which is separated from the other moduls
7 Organizational Structures: Client The client is a unit within an SAP R/3 system that is self-contained both in legal and organizational terms and in terms of data, with separate master records and an independent set of tables.From a business viewpoint, the client represents a corporate group, for example.Client: 3 numerical digits
8 Organizational Structures: Company & Company code The company code is the smallest organizational unit of external accounting for which a complete, self-contained bookkeeping system can be replicated.A company code represents an independent unit producing its own balance sheet, for example, a company within a corporate group (client).Company code = 4 characters
12 Organizational Structures: Purchasing Organizations An organizational unit responsible for procuring materials or services for one or more plants and for negotiating general conditions of purchase with vendors.The purchasing organization assumes legal responsibility for all external purchase transactions.
13 Purchasing organization material grouppurchasing organizationpurchasing group MG 0, 3purchasing group MG 1, 4here you can see how the POrg, the plants and PG‘s are linked up responsible, assigned topurchasing group MG 2, 5purchasing group MG 6plantpurchasing group MG 7, 8, 9
14 Organizational Structures: Purchasing Organization Groups The purchasing organization is further subdivided into purchasing groups (buyer groups), which are responsible for day-to-day buying activities.A purchasing group can also act for several purchasing organizations.
15 Inventory Management with a Warehouse Management System client0001 – ABC inc.company code0001 – Jones inc.0002 – Model Ltd.purchasing organization000100020003MMdistrib.-centerplant00010002000300040001factorystorage location0001000200030004Here you can see an overview of the hierarchical structure including the objects of the warehouse managementIDES = exemplary company maintained in the SAP systemdifferent Storage locations are assigned to a warehouse numberwarehouse number001WMstorage type001002storage bin(physical stock)
16 The Module MM – Main Functions I will talk about the material master laterbefore you order the material from a vendor you have to plan the quantites you need in each periodnext, the ... can be mentioned user department...after you have received the goods, the vendor will make out an invoice and send it to you. Before paying the invoice has to be verified compare with PO, delivery notes etc.
17 MM – interdependencies to other modules LogistikPPproduction planningMMmaterial masterpurchasingrequirements plan.inventory mgmt.invoice verificationSDsales and distrib.QMqualitymanagementPMplant maintenancetalking of the inter-depENdencies of MM one can say that all of the other modules regularly access data maintained and updated in the module MMlike the material master for example, which is relevant for prod. planning and sales & distrib.also: requirements planning....FIfinancial acc.COcontrollingAMfixed assets mgmt.
18 Basic Data Master records - include information about vendorsmaterial and services to be procuredthe relation between 1. and 2. (purchasing info record) e.g. prices / terms and conditionsbills of material forproduction planningpurchasingsales and distributionwithdrawal of MaterialThere are two types of basic data in the module MM
19 Structure of the Vendor Master Record sectionsutilizationarea of validityGeneral datanameaddresscontrol dataclient widepurchasingterms and cond.partner functionscurrencyrequest for quotationquotation processingpurch. order handlingfor each purchasing organizationdifferent sectionsaccounting databank accountacc. maintenancepaymentinvoice entryinvoice verificationpayment handlingclient wide orfor eachcompany code
20 Create a VendorCreating Your Own Vendor Master Record UsageWe recommend that you create your own vendor master record for this scenario. If, however, you prefer to use the reference vendor instead, it could be that the order currency has already been changed and this IDES scenario may no longer work.You create a German vendor in company code 1000, IDES AG Germany, to create purchase orders and invoices denominated in euros.
21 Create a Vendor Procedure Call up the transaction as follows: Menu PathLogistics ® Materials Management ® Purchasing ® Master Data ® Vendor ® Central ® CreateTransaction CodeXK01
22 Create a vendor.On the Create Vendor: Initial Screen, enter the following data:FieldDataVendorYour own vendor (choose a number between 1000 and 1999)Company code1000Purch. organizationAccount groupLIEFReference vendor1080Reference company codeReference purchasing organization
23 Create a VendorOn the Create Vendor: Address screen, enter the following data:FieldDataDescriptionAnySearch termAny, for example "euro"Street/House numberPostal code/City5-figure, numerical (any)CountryDELanguage
24 Create a VendorChoose until you reach the Create Vendor: Accounting and make sure that appears in the Reconciliation Account field.Choose until the Create Vendor: Purchasing Data screen appears.On the Create Vendor: Purchasing Data screen, check that the order currency is EUR.Choose until the Create Vendor: Partner Functions screen appears.Choose until the Create Vendor: Partner Functions screen appears.Choose until the Create Vendor: Partner Functions screen appears.
28 Views on the Material Master Record each view is maintained by a certain user department of the firmaccounting: valuation- und calculation-specific informationrequirements planning: information about material requirements planning (e. g. reorder point)purchasing: e. g. responsible purchasing group, order unitengineering: technical informationstorage: information about warehousing, material movements, ...forecast: information about the forecasting of the material requirementsS & D: informationen about sales orders and price determination
37 purchasing info record vendordatamaterialdatainfo recordpricesterms & cond.PO statisticstolerance levelsdatequotationoutline agreementso far: considered information aboutmaterialvendorsnow: talk about information relating to the combinationERMorder
38 Purchasing Process MM ? = ? requirem. planning invoice verification POinvoice?=requirem.planningXinvoice verificationdetermination: requirementsXvendoroutline agreem.MMdetermination: source of supplygoods received &inventory mgmt.vendor 2vendor 1?the process has the following main steps:POvendor selectionPOPOPO monitoringpurchase order processing
39 Create Purchase Order (PO) vendor 2purch. order1vendor knownterms & cond.purch. order2source listoutline agrementvendor not knowninfo recordvendor3 possibilities of ordering materialvendor 2purch. order3purch. req.assigned purchase requisition exists (from user department)
40 Purchasing Process Create a requisition First release of requisition Create RFQ (Request for Quotation) with reference to requisitionCreate PO (Purchase Order) with reference to RFQDepartment receives material ordered (GR)Department pays invoice (MIRO).
41 Purchase RequisitionDocument generated by a user department or storeroom-personnel to notify the purchasing department of items it needs to order, their quantity, and the timeframe. It may also contain the authorization to proceed with the purchase. Also called purchase request or requisition.
42 Request for QuotationIs a standard business process whose purpose is to invite suppliers into a bidding process to bid on specific products or services. RFQ generally means the same thing as IFB (Invitation For Bid)
43 Purchase OrderBuyer-generated document that authorizes a purchase transaction. It sets forth the descriptions, quantities, prices, discounts, payment terms, date of performance or shipment, other associated terms and conditions, and identifies a specific seller.
49 Demo: Create Purchase Order Open document overview: Click on document overview buttonChoose “Selection variant list” iconThen select “My purchase requisition”, you will get your purchase requisition listedClick on “adopt” icon, your purchase requisition will be copied to the purchase order (or you can drag and drop it into the shopping cart)
51 Demo: Create Purchase Order Enter your vendor, and price 30 euro and save
52 Posting an Order Entry (Goods Receipt) LogisticsMMPPproduction planningSDsales and distrib.purchasingreq. planninggoods receiptinventory mgmt.goods issue.transfer postingQMqualitymanagementPMplant maintenanceinventorycontrollinginvoice verificationFIfinancial acc.COcontrollingAMfixed assets mgmt.
53 Demo: Posting Order Entry (Goods Received) 1. Use T_code : MIGO 2. Select Goods Receipt 3. Select Purchase Order 4. Enter PO number for goods to be received. 5. Hit "Enter"
54 Demo: Posting Order Entry (Goods Received) 6. Enter Document date & posting date 7. Enter Header text (comment) if necessary. 8. Close detail data.
55 Demo: Posting Order Entry (Goods Received) 9. Notice that movement data is "101" 10. If you only received first item, then Check the "OK" box for first line item.therefore, the second item need not be processed
56 Demo: Posting Order Entry (Goods Received) 11. If you only received 3 pcs out of 10 pcs of item one & 2 pcs out of 10 pcs of item two, then Check the "OK" box for both line item 12. Input actual quantity (3 & 2 pcs ).13. Hit "Enter"
57 Demo: Posting Order Entry (Goods Received) 14. Click "Check" button to find out if there is any error.15. Check the "status" column .. Green means OK . Yellow means Warning . Red means error