1. Inventory Facility
Need to replenish Stock Levels with more products.
But to avail more products, GBI has to buy materials to produce the products in its factory/factories, then move them to the inventory facility
Sales Channels
Production Facility
Material Management
Sales Reduces Stock Levels
Material Management reflects the procurement work that GBI carries out to buy materials for producing finished bike and accessory products.
As customers buy products from GBI, their inventory level will shrink. To ensure, there is always sufficient products on stock for future sales, GBI employees will have to procure (purchase) materials to produce more products to replenish the shrinking inventory stock.

2. Functions involved in MM
Material Management
(MM)
Financial Accounting
(FI)

3. Material Management Business Processes
Contract Admin
W’house Supervisor
Inventory Supervisor
Technical Office Assistant
Technical Office Assistant 1
Create New Vendor 2
Create Material Master For Trading Goods 5
Create Purchase Requisition 7
Create Request for Quotation 8
Maintain Quotations From Vendors 3
Extend Material Master for Trading Goods
4 / 6
Display Stock / Req List 9
Evaluate Quotations on Price
Inventory Supervisor
Material Management Business Processes
Technical Office Assistant
10.1
Reject Quotations
W’house Employee
Copy sale views for different plan
Inventory Supervisor
Inventory Supervisor
15 / 20
Display PO History
A/Payable Specialist
Buyer
Buyer 14
Create Invoice Receipt from Vendor
10.2
Create Purchase Order from RFQ 11
Display Purchase Order
Receiving Clerk 19
Display Line Items 16
Create Goods Receipt for Delivered PO 13
Sight/Verify Physical Receipt of Goods 12
Create Goods Receipt for Purch Order
Inventory Supervisor
Chief Accountant 21
Display GL Account Balances & Line Items
18 /20
Post Payments to Vendor 17
Create Invoice Receipt from Vendor
Receiving Clerk
Receiving Clerk
A/Payable Specialist
A/Payable Specialist

4. GBI decides a new material vendor
Logistics ► Materials Management ► Material Master ► Material ► Create (Special) ► Trading Goods
Create New Vendor
Joyce Hausman (Contract Admin)

5. Create a new trading good / material (chain lock) in Miami plant
2. Create Chain Lock in Material Master File
Create different viewing tabs of new Chain Lock material 
Assign the Miami plant to view & update the basic information about this new material:
Pick up Miami Plant record    
Sandeep Das (Warehouse Supervisor)
Choose the Basic Data 1 tab, and update the information: Set base unit to EA (each); Utility code to UTIL, Division to AS, Gross and New Weights to 65 and Weight Unit to Oz
Choose the Sales Org 1 tab, and update the information as instructed
Then click CONDITIONS to set the conditional price of the Chain Lock in Miami

6. Select the chain lock material item for copying
Copy Miami’s sale views of the chain lock to share the info with the San Diego plant
3. Extend Material Master for Trading Goods
Select the chain lock material item for copying
Select and copy Miami’s 3 sales views for sharing the trading good info with San Diego plant
Indicate the copying source (Miami Delivery plant) and destination (Sand Diego SD)
Sergey Petrov (Warehouse Employee)

7. 4. Display Miami’s stock level of the new trading product (Chain Lock)
Indicate which plant (Miami) & material (chain lock) to inquire
Display chain lock’s inventory level
4. Display Miami’s stock level of the new trading product (Chain Lock)
There should be some chain locks in inventory.
Logistics ► Materials Management ► Inventory Management ► Environment ► Stock ► Stock/Requirements List
Wilton Saban (Inventory Supervisor)

8. Request a bid for 200 locks within a month, to select the best bid for ordering to meet a promotional campaign in 3 months’ time
5. Create Purchase Requisition (ie order more chain locks to replenish the inventory level
Logistics ► Materials Management ► Purchasing ► Purchase Requisition ► Create
Wilton Saban (Inventory Supervisor)

9. 6 Display Stock/ Requirement List
Logistics ► Materials Management ► Inventory Management ► Environment ► Stock ► Stock/Requirements List
6 Display Stock/ Requirement List
Alberto Conti (Technical Office Assistant)
Alberto checks purchase requisition has been issue to stock up for the promotion campaign in 3 month’s time

10. 7. Create RFQ (Quotes) for Vendors
Albert is collecting pricing, delivery and other information for selecting the best vendor’s offer
Logistics ► Materials Management ► Purchasing ► RFQ/Quotation ► Request for Quotation ► Create
Alberto Conti (Technical Office Assistant)

11. 8 Maintain Vendors’ RFQ Responses
For each RFQ received, do the following:
8 Maintain Vendors’ RFQ Responses
Alberto Conti (Technical Office Assistant)
Logistics ► Materials Management ► Purchasing ► RFQ/Quotation ► Quotation ► Maintain

12. 9 Evaluate RFQ quotations on price
Compare the recorded vendors’ RFQ’s prices
Decide Vendor
9 Evaluate RFQ quotations on price
Reject the rest
Wilton Saban (Inventory Supervisor)
Logistics ► Materials Management ► Purchasing ► RFQ/Quotation ► Quotation ► Price Comparison

13. 10 Create Purchase Order Referencing an RFQ
Logistics ► Materials Management ► Purchasing ► Purchase Order ► Create ► Vendor/Supplying Plant Known
10 Create Purchase Order Referencing an RFQ
Aura Maxwell (Buyer)

14. 11 Display Purchase Order
Logistics ► Materials Management ► Purchasing ► Purchase Order ► Display
Aura Maxwell (Buyer)

15. 12 Create Goods Receipt for Purchase Order
Logistics ► Materials Management ► Inventory Management ► Goods Movement ► Goods Receipt ► For Purchase Order ► GR for Purchase Order (MIGO)
Tatjana Karsova (Receiving Clerk)

16. 13 Verify Physical Receipt of Goods
Logistics ► Materials Management ► Inventory Management ► Environment ► Stock ► Stock Overview
Tatjana Karsova (Receiving Clerk)

17. 14 Create (a copy of) Invoice Receipt from Vendor (for GL posting)
Logistics ► Materials Management ► Logistics Invoice Verification ► Document Entry ► Enter Invoice
Silvia Cassano (Accounts Payable Specialist)

18. 14 Create Invoice Receipt from Vendor (continue)
Note: When you enter to save the work, you may find the system will ask you to “enter the tax jurisdiction code” – enter FL (FL with 7 zeros) and that should clear the error message
Silvia Cassano (Accounts Payable Specialist)

19. 15 Display Purchase Order History
Logistics ► Materials Management ► Purchasing ► Purchase Order ► Display
The PO should automatically display, otherwise find it
You can see all the data via the following tabs:
Purchase Order History
Material Document
Follow-on Documents (GL Postings)
15 Display Purchase Order History
Wilton Saban (Inventory Supervisor)

20. 16 Create Goods Receipt (Document) for Purchase Order
Logistics ► Materials Management ► Inventory Management ► Goods Movement ► Goods Receipt ► For Purchase Order ► GR for Purchase Order (MIGO)
CHOOSE Logistics ► Materials Management ► Inventory Management ► Goods Movement ► Goods Receipt ► For Purchase Order ► GR for Purchase Order (MIGO)
Select PO Number to create receipt document
16 Create Goods Receipt (Document) for Purchase Order
Tatjana Karsova (Receiving Clerk)

21. 17 Create (another copy of) Invoice Receipt from Vendor (for vendor payment reference in payment mail-out to the vendor)
Logistics ► Materials Management ► Logistics Invoice Verification ► Document Entry ► Enter Invoice
Silvia Cassano (Accounts Payable Specialist)

22. 18 Post Payments to Vendor
Accounting ► Financial Accounting ► Accounts Payable ► Document Entry ► Outgoing Payment ► Post
Accounting ► Financial Accounting ► Accounts Payable ► Document Entry ► Outgoing Payment ► Post
Silvia Cassano (Accounts Payable Specialist)

23. 19 Display Vendor (Debit/Credit) Line Items
Accounting ► Financial Accounting ► Accounts Payable ► Account ► Display Balances
Shuyuan Chen (Chief Accountant)

24. 20 Display/Review G/L Account Balances and Individual Line Items
Accounting ► Financial Accounting ► General Ledger ► Account ► Display Balances (New)
Shuyuan Chen (Chief Accountant)

25. 20 Display Purchase Order History
Logistics ► Materials Management ► Purchasing ► Purchase Order ► Display
20 Display Purchase Order History
Wilton Saban (Inventory Supervisor)