 Andersen Consulting IM01 - Organizational Structure & Master Data in IM November, 2000

 Andersen Consulting Instructor YOUR FACILITATOR FOR THIS COURSE IS : Stella Ding Consultant Andersen Consulting

 Andersen Consulting Course Objectives At the end of this chapter, you will be familiar with: Special goods movements features Using reservations to plan goods movements in advance Procedures for special issues of goods (e.g. samples, scrapping), and their effects Carrying out various goods issue procedures, planned and unplanned, with their respective updates Stock transfers and transfer postings using the one- step and two-step procedures Learning to use system tools (e.g. R/3 documentation) to prepare for learning additional functions on their own

 Andersen Consulting Course Description Participants gain basic knowledge and practice using the R/3 System by focusing on core functions and processes. They are taught to use the system tools (e.g. R/3 documentation which prepare them to learn additional functions on their own.

 Andersen Consulting IM01 - Organizational Structure and Master Data Schedule & Topic Organizational Structure Master Data - Material Master

 Andersen Consulting Schedule & Topic Introduction to Inventory Management Goods Receipt Reservations Goods Issue Stock Transfer/Transfer Posting Reporting and Analysis IM02 - Processes in Inventory Management

 Andersen Consulting Topic One: Organization Structures Topic Two: Master Data - Material Master Schedule

 Andersen Consulting Organizational Elements Definition In the SAP R/3 System: Organizational elements are structures that represent the legal and/or organizational views of an enterprise. You can design your company structure based on your business processes. The organizational elements form a framework that supports all business activities.

 Andersen Consulting Organizational Elements The SAP R/3 Inventory Management business process uses the following R/3 organizational elements: Company code Plant Storage location Client

 Andersen Consulting Client The client is a commercial, organizational unit within the R/3 System, with its own data, master records, and set of tables. From a business perspective, the client forms a corporate group.

 Andersen Consulting Company Code A company coderepresents an independent accounting unit, for example, a company within a corporate group. The company code is the smallest organizational unit for which you can have an independent Accounting department within external Accounting.

 Andersen Consulting Plant A plant is an organizational unit within a company. A plant produces goods, renders services, or makes goods available for distribution. A plant can be one of the following types of locations: Manufacturing facility Warehouse distribution center Regional sales office Corporate headquarters Plant

 Andersen Consulting Client Company code 1Company code 2 Plant 1 Plant 2 Plant 3 Plant 4 Plant Plant 1 Plant 2 Plant 3 Plant 4 Company Code 1 Company Code 2

 Andersen Consulting Assigning a Plant to a Company Code Plants Client Company codes

 Andersen Consulting Storage Location Storage locationsare organizational units that allow the differentiation of material stocks within a plant. Storage Location 0001 Storage Location 0002 Storage Location 0003 Storage Location 0004

 Andersen Consulting Defining Storage Locations within a Plant Storage locations Plants Company Code 1000

 Andersen Consulting This unit has provided an overview of the organizational structures of the R/3 System from a Inventory Management point of View. The main organizational levels are Company Code Plant Storage Location Views on the master data in the R/3 System result from the organizational structure. Organizational Structures in IM Summary

 Andersen Consulting Topic One: Organization Structures Topic Two: Master Data - Material Master Schedule

 Andersen Consulting Master Data contains the records that remain in the database over an extended period of time. Master Data (e.g., Vendor Data) General Data (common across client) Purchasing Data (unique to purchasing organization) Accounting Data (unique to company) Master Data is centrally stored (shared across application modules) and processed to eliminate data redundancy. SAP R/3 Master Data

 Andersen Consulting General Concepts The material master contains information about the materials an enterprise buys, produces, stores, and sells. Information is stored in a database that is used as a central repository for material data. Material data is used throughout the R/3 System. Applications related to Procurement include: Purchasing Inventory Management Invoice Verification MRP Material Master Data

 Andersen Consulting Organizational Levels in Material Master General data Material number Description Units of measure Technical data Plant-specific data MRP data Purchasing data Storage location data Stock quantities Client Plant Storage Location The Material master has a hierarchical structure, which covers the following organizational levels: Client plant storage location Organizing materials hierarchically allows easy management of information and prevents redundant storage of material data.

 Andersen Consulting Primary Views Material master record Material planning St t Purchasing Sales and distribution Storage Quality management Stocks in plant-warehouse A B Warehouse management Classification Forecast Accounting Each user department has its own view of the material master containing department-specific data.

 Andersen Consulting Material Master View Selection Screen The R/3 System allows selection and maintenance of the data that is relevant to a particular department To create a view, the view must be selected on this screen before material data is entered Users are responsible for creating and maintaining the view(s) of the material that are relevant to their department(s) Changes are recorded in history

 Andersen Consulting Levels in material master maintenance Material Initial level Purchasing St t Engineering MRPSalesForecast Accounting department Main work level Units of measure Additional data level Texts Management data Consumption Additional data level

 Andersen Consulting Material Types & Industry Sectors Semi-finished products Raw materials Semi-finished products Finished products Others Mechanical engineering Chemical industry Material master records are grouped according to industry sectormaterial Industry sector information determines the industry- specific data that will appear on the material master record. Material type information determines what departmental views are maintained and how inventory will be handled (quantity and value updates).

 Andersen Consulting Industry Sector Industry sector determines the type of industry to which the material will be assigned. Industry sector information determines: which screens will appear and in what sequence. what industry-specific data will appear.

 Andersen Consulting Material Type Material types group materials with the same basic attributes. Material type information determines: Which departmental views are maintained. Whether changes in material quantities are updated. Whether internal or external procurement is allowed. Which general ledger accounts are updated (e.g., inventory account).

 Andersen Consulting Material Type - Default Parameters Account assignment Can material be configured? Quantity / value update Price control Variances per plant Material A Material type  Data views / screen sequence  Number range / assignment  Description  Field reference  Item category group  Price control  Internal / external purchase orders  Valuation / account assignment

 Andersen Consulting Material master - data areas General data Material number Description Units of measure Technical data Plant-specific data MRP/type Planned delivery time Purchasing group Batch indicator Valuation Valuation price Valuation procedure Valuation quantity Sales-specific data Delivering plant Sales texts Unit of measure Palleting instruction Storage location- specific data Storage time Stock fields Forecast data Consumption data Warehouse Manage- ment system data

 Andersen Consulting Units of measure Base unit: Piece (ea) Box (unit of issue) Crate (order unit) Pallet (sales unit) 49616

 Andersen Consulting Material creation - Accounting... MART Allowed values ROH HALB 7920 HIBE Mat. stock account Valuation class

 Andersen Consulting Material creation - Accounting Price control Standard price control: Valuation at standard price from the material master record Moving average price control: Landed price (e.g. order price) influences the valuation price ? ? S S V V

 Andersen Consulting Display options for material data Display Stock overviewList of materials Data for this material Material List of selected material Stocks per plant/ storage location

 Andersen Consulting Additional functions Change Flag for deletion Change document Material

 Andersen Consulting Changing / extending the material Material master record Purchasing Sales and distribution Stocks in plant-warehouse A B Engineering Accounting Requirements planning St t Classification Data view to be “created”

 Andersen Consulting Material Master Summary A material has different organizational levels Material processing is controlled by the material type, the industry sector and the material status The data in a material master record is divided between different views ( departments ) In addition to data pertaining to the organizational levels, a view usually contains data for more general organizational levels The material master record can be maintained centrally or can be maintained on a decentralized basis according to the organizational levels and views

 Andersen Consulting Exercise for Material Master Now it’s time for you to do exercise: IM01 - Exercise 1

 Andersen Consulting Congratulations !