1.  Andersen Consulting 2000 1 IM01 - Organizational Structure & Master Data in IM November, 2000

2.  Andersen Consulting 2000 2 Instructor YOUR FACILITATOR FOR THIS COURSE IS : Stella Ding Consultant Andersen Consulting

3.  Andersen Consulting 2000 3 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

4.  Andersen Consulting 2000 4 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.

5.  Andersen Consulting 2000 5 IM01 - Organizational Structure and Master Data Schedule & Topic Organizational Structure Master Data - Material Master

6.  Andersen Consulting 2000 6 Schedule & Topic Introduction to Inventory Management Goods Receipt Reservations Goods Issue Stock Transfer/Transfer Posting Reporting and Analysis IM02 - Processes in Inventory Management

7.  Andersen Consulting 2000 7 Topic One: Organization Structures Topic Two: Master Data - Material Master Schedule

8.  Andersen Consulting 2000 8 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.

9.  Andersen Consulting 2000 9 Organizational Elements The SAP R/3 Inventory Management business process uses the following R/3 organizational elements: Company code Plant Storage location Client

10.  Andersen Consulting 2000 10 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.

11.  Andersen Consulting 2000 11 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.

12.  Andersen Consulting 2000 12 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

13.  Andersen Consulting 2000 13 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

14.  Andersen Consulting 2000 14 Assigning a Plant to a Company Code Plants Client Company codes 20001000 00030004 00010002

15.  Andersen Consulting 2000 15 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

16.  Andersen Consulting 2000 16 Defining Storage Locations within a Plant Storage locations Plants 000100020003 0001 0002 Company Code 1000

17.  Andersen Consulting 2000 17 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

18.  Andersen Consulting 2000 18 Topic One: Organization Structures Topic Two: Master Data - Material Master Schedule

19.  Andersen Consulting 2000 19 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

20.  Andersen Consulting 2000 20 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

21.  Andersen Consulting 2000 21 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.

22.  Andersen Consulting 2000 22 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.

23.  Andersen Consulting 2000 23 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

24.  Andersen Consulting 2000 24 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

25.  Andersen Consulting 2000 25 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).

26.  Andersen Consulting 2000 26 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.

27.  Andersen Consulting 2000 27 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).

28.  Andersen Consulting 2000 28 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

29.  Andersen Consulting 2000 29 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

30.  Andersen Consulting 2000 30 Units of measure Base unit: Piece (ea) Box (unit of issue) Crate (order unit) Pallet (sales unit) 49616

31.  Andersen Consulting 2000 31 Material creation - Accounting... MART Allowed values ROH 3000 3010 HALB 7920 HIBE 3000... Mat. stock account 300000 300100 790000 300000 Valuation class

32.  Andersen Consulting 2000 32 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

33.  Andersen Consulting 2000 33 Display options for material data Display Stock overviewList of materials Data for this material Material List of selected material Stocks per plant/ storage location

34.  Andersen Consulting 2000 34 Additional functions Change Flag for deletion Change document Material

35.  Andersen Consulting 2000 35 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”

36.  Andersen Consulting 2000 36 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

37.  Andersen Consulting 2000 37 Exercise for Material Master Now it’s time for you to do exercise: IM01 - Exercise 1

38.  Andersen Consulting 2000 38 Congratulations !