1. Material Management (MM) Master Data & Records EGN Enterprise Systems Configuration Spring, 2014

2. Material Data Definition Generic classification(material types) :
Physical objects to buy, transform into, sell, maintain other resources, or use in support for business activities.
Generic classification(material types) :
Trading goods
Raw materials
Semi-finished products (WIPs)
Finished products
Consumables (e.g., stationery, production tools)
Spare parts (for maintenance)

3. Material Data Typical material attributes, by business functions:
Application/industry (sector)
Engineering (i.e., material properties)
Purchase
Sales
Accounting
Production
Inventory (MRP)
Warehousing

4. Material Numbering Scheme
Decisions include:
Material number length
Numbering schemes
Option 1: use sequential number
Option 2: use a template to define the meaning of material numbers, according to:
Material type
Material property type
Material shape and/or
Dimensions
Principles:
Each inventory item must has a unique number.
Automatic assignment of material numbers is the best (simplest) choice for simplicity of maintenance.

5. MM Master Data & Records SAP MM Master Data and Records

6. MM Master Data MM Master Data ECC 6.0 January 2008
Now, we will build two additional chunks of the base of the stool for finance: Rules and master Data
January 2008
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7. MM Master Data (review)
ECC 6.0
January 2008
MM Master Data (review)
Material master data are part of SAP master data, which are relatively fixed
The organizational structure must be completed before creating the master data
Master data does not change very often
Org data – should not change
Transaction data (application data) – changes every transaction
Master Data includes things like material, customer records, vendor records, and general ledger accounts.
January 2008
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8. ECC 6.0
January 2008
Master Data (review)
Master data include business rules and supportive information which are applied while generating master data records
Master data are maintained by individual data owners in various organizational units inside the SAP client
Master data created at the client level
Can go across multiple organizations or plants.
Internal number ranges are system generated.
External are user/company determined
Business transactions are posted to accounts and managed using those accounts. You must create a master record for each account that you require. The master record controls how business transactions are recorded and processed by the system.
Specifications you make in master records are used:
As default values when you post items to the account. For example, the terms of payment you specify in the master record are defaulted for document entry.
For processing business transactions For instance, bank details and the payment methods (check or bank transfer, for example) are required for automatic payments.
For working with master records. You can prevent certain users from accessing an account by setting up authorization groups.
January 2008
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9. Master Data records (review)
ECC 6.0
Master Data records (review)
January 2008
Each master data record is unique
Master data records are usually created or converted (from a legacy system) at the beginning of SAP deployment
Material master records are maintained by various organization units such as sales, purchasing, production, & accounting, etc.
All kinds of view – Different part of data.
Vendors information is pertinent to both A/P and purchasing. Both departments have information that they need to maintain, though maintain primarily by purchasing and used by A/P
Infor Records are records pertinent to the Vendor and the Material. We will be discussing them shortly
January 2008
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10. Material Master Data Modeling
ECC 6.0
January 2008
Material Master Data Modeling
Material attributes are used to sufficiently differentiate their:
industry/application sector
(Material) type
maintenance features
organizational levels
various business views
Materials with the same basic attributes are grouped together and assigned to a material type. This allows you to manage different materials in a uniform manner in accordance with your company's requirements.
Industry Sector
Key that specifies the branch of industry to which the material is assigned.
If you frequently assign materials to the same industry sector, it is useful to define it as a default to save you having to keep entering it whenever you create or access a material master record. Likewise, if you always require the same views when creating or accessing material master records, you can define that they are selected by default in the Select View(s) dialog box. Like the industry sector, you can also predefine the organizational levels for which you maintain data, and the profiles you use.
January 2008
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11. Material Master – Industry Sector
ECC 6.0
Material Master – Industry Sector
January 2008
Industry sector is used to group records
It determines industry-specific data that will appear on the master record
Industry sector examples:
Chemical industry (C ),
Mechanical engineering (M),
Pharmaceuticals (P),
Plant Eng./Construction (A),
Retail, and so on.
When you create a material master record, you are required to classify the material according to industry sector and material type.
Like material types, industry sectors have control functions in the R/3 System. For example, it is a factor determining the screen sequence and field selection in a material master record. Once you have assigned an industry sector to a material, you cannot change the industry sector.
January 2008
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12. Material Master – Material Type
ECC 6.0
Material Master – Material Type
January 2008
It is used to categorize material types
It defines material attributes of:
Valuation
Procurement, and
Price control, etc.
It controls transaction (types) allowed for the material
It controls the screen (view) sequence, number assignment, field selection, and account determination
Does the price control attribute control transaction types and view sequences?
January 2008
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13. Material Master – Material Type
ECC 6.0
Material Master – Material Type
January 2008
Material type information is used to determines:
What views are maintained
Whether internal or external procurement is allowed
Whether changes in material quantity need to be updated
Which general ledger accounts need to be updated
Every material has a material type
Material Type controls the views and fields to create the material
Material types are controlled at the client level
Materials with the same basic attributes are grouped together and assigned to a material type. This allows you to manage different materials in a uniform manner in accordance with your company's requirements.
When you create a material master record, the material type you choose determines:
Whether the material is intended for a specific purpose, for example, as a configurable material or process material
Whether the material number can be assigned internally or externally
The number range from which the material number is taken
Which screens appear and in what sequence
Which departmental data you may enter
What procurement type the material has; that is, whether it is manufactured in-house or procured externally, or both
Together with the plant, the material type determines the material's inventory management requirement; that is:
Whether changes in quantity are updated in the material master record
Whether changes in value are also updated in the stock accounts in financial accounting
In addition, the accounts affected by a material entering or leaving the warehouse depend on the material type.
January 2008
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14. Material Master – Material Types
ECC 6.0
Material Master – Material Types
January 2008
SAP standard material types (used in all industries):
ROH (Raw Materials)
Purchased externally only
No sales view
HAWA (Trading Goods)
Always purchased externally
Sold without any change to the material
No manufacturing views exist
FERT (Finished Products)
Are produced internally
Normally no purchasing views exist
ROH German acronym for Raw materials
Raw materials (ROH)
Raw materials are always procured externally and then processed. A material master record of this type contains purchasing data, but not sales data since they cannot be sold.
Trading goods (HAWA)
Trading goods are always procured externally and then sold. A material master record of this material type can contain purchasing data and sales data.
January 2008
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15. Material Master – More Material Types
ECC 6.0
January 2008
Material Master – More Material Types
HIBE (Operating Supplies)
VERP (Customer returnable packaging)
LEER (Empty containers)
KMAT (Configurable material)
ERSA (Spare parts)
DIEN (Services)
NLAG (Non-stock, non-valuated material)
UNBW (Non-valuated, stocked material)
FHMI (Production resources/tools)
WETT (Competitive products)
PROD (Product group)
IBAU (Maintenance assembly, plant maintenance)
Operating supplies (HIBE)
Operating supplies are procured externally and required for the manufacture of other products. A material master record of this material type can contain purchasing data, but not sales data.
Packaging materials (VERP)
Packaging materials are used to transport goods and come with the goods free of charge. A material master record of this material type is managed on both a quantity basis and value basis.
Empties (industry LEER, retail LGUT)
Empties are a type of returnable transport packaging generally subject to a deposit. They can consist of several components grouped together in a bill of material (BOM) that are assigned to a full product. For example, an empty crate and the empty bottles are assigned to the full product beer. Each of the components in the BOM has a separate material master record.
Configurable materials (KMAT)
Configurable materials are materials that can have different variants. For example, an automobile can have different types of paintwork, trim, and engine. The Material is configurable indicator is already set for this material type in Customizing for the Material Master in Define Attributes of Material Types.
Spare parts (ERSA)
Spare parts are used to replace defective parts. They may be kept in stock. A material master record of this material type can contain purchasing data, but not sales data.
Services (DIEN)
Services can be performed internally or procured externally (outsourced). They cannot be stored or transported.
Construction work
Janitorial/cleaning services
Legal services
Savings on Customer Returnable containers
Configurable – Dell or Gateway
January 2008
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16. Material Master – Maintenance Features
ECC 6.0
January 2008
Material Master – Maintenance Features
Default
It speeds data entry by using the most frequently used field values (plant, purchasing organization, etc.)
Reference Material
It speeds data entry by copying data from existing material master
Profile
It speeds data entry by copying standard data created in a profile into a selected view Materials Requirements Planning (MRP)
Collective entry of storage location data
It speeds the creation of multiple storage locations
If you frequently assign materials to the same industry sector, it is useful to define it as a default to save you having to keep entering it whenever you create or access a material master record. Likewise, if you always require the same views when creating or accessing material master records, you can define that they are selected by default in the Select View(s) dialog box. Like the industry sector, you can also predefine the organizational levels for which you maintain data, and the profiles you use.
Reference material
Number of the material whose data you want the system to copy as default values.
January 2008
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17. Material Master – Organization Levels
ECC 6.0
January 2008
Material Master – Organization Levels
Material master data can be related to all organizational levels
General information of material master records (such as description, number, base unit of measure) has to be related to the highest level of organization (i.e., the client)
Other material master records are tailored at the plant or lower levels
The material master has a hierarchical structure resembling the organizational structure of a company. Some material data is valid at all organizational levels, while other data is valid only at certain levels.
Client
Company Code
Plant
Storage Location
Purchasing Organization
Sales Organization
Warehouse Number
Storage Type
January 2008
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18. Material Master – at Various Organization Levels
ECC 6.0
January 2008
Material Master – at Various Organization Levels
Data are visible
At client level:
Description
Units of measure
Material number
Engineering data
At plant level:
Planning data
Manufacturing data
Purchasing data
At storage location level:
Stock quantities
Client data is used enterprise wide. It will default for all lower levels
Plant data can be plant specific.
Demand at one plant may result in a production order
Another plant’s demand may result in a transfer order from the production plant.
These causes different ‘behaviors’ in operations per plant. Thus, material master is partially independent
Different plant views – we do not have to create the same material over again at each plant
Different functions
January 2008
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19. Material Master – Primary Views
ECC 6.0
January 2008
Material Master – Primary Views
Basic data 1
Sales: sales organization data 1
Sales: sales organization data 2
Sales: general/plant data
Sales: texts
Purchasing
Forecasting
MRP: 1
MRP: 2
MRP: 3
Work scheduling
General Plant Data/Storage
Accounting 1
Costing 1
Purchasing
View
MRP 1
Barrel Pen
256 fields available in the material master. You do not need them all
By selecting the views, by default, it will result of that information being created regardless is you access the screen or not.
January 2008
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20. Material Master – Basic Data 1 View
ECC 6.0
January 2008
Material Master – Basic Data 1 View
General data
Basic Unit of Measure
Unit of measure in which stocks of the material are managed
Material Group
Used to group together several materials or services with the same attributes
Division
Used to determine the sales area and the business area for a material, product, or service
Dimensions/EANs
Gross weight
Used to check storage capacity in warehouse
Net weight
Weight excluding packaging and extras – this is needed for sales and distribution
Weight Unit
Unit of Measure for weight
Volume
The space that the material occupies per unit of volume
Once you create a view, you can only change a view. You cannot delete it.
Base Unit of Measure
Unit of measure in which stocks of the material are managed. The system converts all the quantities you enter in other units of measure (alternative units of measure) to the base unit of measure.
Material Group
Key that you use to group together several materials or services with the same attributes, and to assign them to a particular material group.
Use
You can use material groups to:
Restrict the scope of analyses
Search specifically for material master records via search helps
Division
A way of grouping materials, products, or services. The system uses divisions to determine the sales areas and the business areas for a material, product, or service.
A product or service is always assigned to just one division. From the point of view of sales and distribution, the use of divisions lets you organize your sales structure around groups of similar products or product lines. This allows the people in a division who process orders and service customers to specialize within a manageable area of expertise.
January 2008
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21. Material Master – Sales View 1: Sales Organization
ECC 6.0
January 2008
Material Master – Sales View 1: Sales Organization
General Data
Base Unit of Measure
The Base Unit of Measure is the unit of measure in which stocks are managed within your company.
Division
You may enter the Division which your product is in for sales (defaults if entered in the Basic data screen).
Material Group
A key that’s used to group several materials or services for analysis/reporting as well as search by match code.
Sales Unit
The unit of measure in which the material is sold, if left blank then uses the base unit of measure.
Once you create a view, you can only change a view. You cannot delete it.
Base Unit of Measure
Unit of measure in which stocks of the material are managed. The system converts all the quantities you enter in other units of measure (alternative units of measure) to the base unit of measure.
Procedure
You define the base unit of measure and also alternative units of measure and their conversion factors in the material master record.
Sales unit
Unit of measure in which the material is sold.
Enter a value in this field only if you want to use a unit of measure differing from the base unit of measure.
If the field does not contain an entry, the system will assume that the unit of measure is the base unit of measure.
Division
A way of grouping materials, products, or services. The system uses divisions to determine the sales areas and the business areas for a material, product, or service.
Use
A product or service is always assigned to just one division. From the point of view of sales and distribution, the use of divisions lets you organize your sales structure around groups of similar products or product lines. This allows the people in a division who process orders and service customers to specialize within a manageable area of expertise.
Delivering Plant (Own or External)
Plant from which the goods should be delivered to the customer.
This plant is automatically copied into the sales order item as the default value.
Material Group
Key that you use to group together several materials or services with the same attributes, and to assign them to a particular material group.
You can use material groups to:
Restrict the scope of analyses
Search specifically for material master records via search helps
Cash discount indicator
Indicator that specifies whether this material qualifies for a cash discount.
Conditions
Determine the pricing for the material
Tax classification material
The indicator with which the system determines output tax for the material when processing sales and distribution-specific documents.
Minimum order quantity in base unit of measure
The minimum quantity a customer may order.
Minimum delivery quantity in delivery note processing
Minimum quantity that may be delivered to a customer.
Delivery unit
Only exact multiples of this number can be delivered.
Example
The delivery unit consists of a number and a unit of measure . In the case of a delivery unit of 30 pieces, 30, 60, 90, and so on pieces can be delivered, but not, however, 100 pieces.
January 2008
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© SAP AG and The Rushmore Group, LLC 2008

22. Material Master – Sales View 1: Sales Organization
ECC 6.0
January 2008
Material Master – Sales View 1: Sales Organization
Delivering Plant
Plant from which the material is available for sale.
Cash discount
Indicator used for materials, which allow for a cash discount.
Conditions
Pricing procedure for the material
Tax Data
Tax classification material
The indicator with which the system determines output tax for the material when processing sales and distribution-specific documents
Once you create a view, you can only change a view. You cannot delete it.
Base Unit of Measure
Unit of measure in which stocks of the material are managed. The system converts all the quantities you enter in other units of measure (alternative units of measure) to the base unit of measure.
Procedure
You define the base unit of measure and also alternative units of measure and their conversion factors in the material master record.
Sales unit
Unit of measure in which the material is sold.
Enter a value in this field only if you want to use a unit of measure differing from the base unit of measure.
If the field does not contain an entry, the system will assume that the unit of measure is the base unit of measure.
Division
A way of grouping materials, products, or services. The system uses divisions to determine the sales areas and the business areas for a material, product, or service.
Use
A product or service is always assigned to just one division. From the point of view of sales and distribution, the use of divisions lets you organize your sales structure around groups of similar products or product lines. This allows the people in a division who process orders and service customers to specialize within a manageable area of expertise.
Delivering Plant (Own or External)
Plant from which the goods should be delivered to the customer.
This plant is automatically copied into the sales order item as the default value.
Material Group
Key that you use to group together several materials or services with the same attributes, and to assign them to a particular material group.
You can use material groups to:
Restrict the scope of analyses
Search specifically for material master records via search helps
Cash discount indicator
Indicator that specifies whether this material qualifies for a cash discount.
Conditions
Determine the pricing for the material
Tax classification material
The indicator with which the system determines output tax for the material when processing sales and distribution-specific documents.
Minimum order quantity in base unit of measure
The minimum quantity a customer may order.
Minimum delivery quantity in delivery note processing
Minimum quantity that may be delivered to a customer.
Delivery unit
Only exact multiples of this number can be delivered.
Example
The delivery unit consists of a number and a unit of measure . In the case of a delivery unit of 30 pieces, 30, 60, 90, and so on pieces can be delivered, but not, however, 100 pieces.
January 2008
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23. Material Master – Sales View 1: Sales Organization
ECC 6.0
January 2008
Material Master – Sales View 1: Sales Organization
Quantity Stipulations
Minimum Order Quantity
Minimum quantity a customer may order.
Minimum Delivery Quantity
Minimum quantity that may be delivered to a customer
Delivery Unit
The delivery unit consists of a number and a unit of measure. In the case of a delivery unit of 30 pieces, 30, 60, 90, and so on pieces can be delivered, but not, however, 100 pieces.
Cash discount indicator
Indicator that specifies whether this material qualifies for a cash discount.
Conditions
Determine the pricing for the material
Tax classification material
The indicator with which the system determines output tax for the material when processing sales and distribution-specific documents.
Minimum order quantity in base unit of measure
The minimum quantity a customer may order.
Minimum delivery quantity in delivery note processing
Minimum quantity that may be delivered to a customer.
Delivery unit
Only exact multiples of this number can be delivered.
Example
The delivery unit consists of a number and a unit of measure . In the case of a delivery unit of 30 pieces, 30, 60, 90, and so on pieces can be delivered, but not, however, 100 pieces.
January 2008
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24. Material Master – Sales View 2: Sales Organization
ECC 6.0
January 2008
Material Master – Sales View 2: Sales Organization
Grouping Terms
Material Statistics Group
Determine which data the system updates in the logistics information system
Material Pricing Group
A way of grouping materials to which you want to apply the same conditions
Volume Rebate Group
Group definition used for rebate settlement.
General Item Category Group
Materials grouping that helps the system to determine item categories during sales document processing.
Item Category Group
A grouping of materials that the system uses to determine item categories during the processing of sales documents.
Commission Group
Commission group to which the material is assigned.
Material statistics group
Definition
Specifies a statistics group for this material and helps determine which data the system updates in the logistics information system.
Use
You can assign statistics groups to each of the following:
Item category
Sales document type
Customer
Material
When you generate statistics in the logistics information system, the system uses the combination of specified statistics groups to determine the appropriate update sequence. The update sequence in turn determines for exactly which fields the statistics are generated.
Material Pricing Group
A way of grouping materials to which you want to apply the same conditions.
You can create condition records for a material pricing group using the following condition types:
Material pricing group (for example, all non-food products)
A combination of customer and material pricing group
A combination of price group and material group (for example, all wholesale customers and all non-food products)
Volume rebate group
Group definition that can be used for rebate settlement.
General item category group
Materials grouping that helps the system to determine item categories during sales document processing.
If a group is configured specific to distribution channel, it has priority if the corresponding activity is distribution channel-dependent.
Procedure
The system automatically suggests an item type in the document depending on the item category group you assign and the sales document type you are processing.
Example
In the standard system, there are normal items, items that signify services (and therefore need no delivery processing) and items that signify packing material, for example.
Item category group from material master
A grouping of materials that the system uses to determine item categories during the processing of sales documents.
Depending on the item category group that you apply and the sales document type you are processing, the system automatically proposes an item category in the document.
In the standard system, for example, there are standard items, items that represent services (and do not require delivery processing), and items that represent packaging materials.
Commission group
Commission group to which the material is assigned.
You can assign two materials to the same commission group as long as each representative who sells these materials receives the same commission percentage for both materials. In other words, the commission percentages within a commission group are always the same for any one representative but may vary for different representatives.
MaterialRep. 1Rep. 2Rep. 3A5 %10 %11 %B5 %10 %11 %
Materials A and B are sold by these three representatives only. You can therefore assign them to the same commission group.
January 2008
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25. Material Master – Sales View: General/Plant View
ECC 6.0
January 2008
Material Master – Sales View: General/Plant View
General Data
Base unit
The unit of measure in which items are managed in the company
Gross weight
Used to check storage capacity in warehouse
Net weight
Weight excluding packaging and extras – this is needed for sales and distribution
Availability check
Option to do an availability check for orders and MRP
Base Unit of Measure
Unit of measure in which stocks of the material are managed. The system converts all the quantities you enter in other units of measure (alternative units of measure) to the base unit of measure.
Procedure
You define the base unit of measure and also alternative units of measure and their conversion factors in the material master record.
Gross weight
Gross weight expressed in the unit of weight specified by you in the Unit of weight field.
Net weight
Net weight expressed in the unit of weight specified by you in the Unit of weight field.
Checking Group for Availability Check
This field has two uses:
1. Specifies whether and how the system checks availability and generates requirements for materials planning.
2. In Flexible Planning, defines - together with the checking rule - the different MRP elements that make up this key figure. The sum of these elements gives the key figure.
January 2008
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26. Material Master – Sales View: General/Plant View
ECC 6.0
January 2008
Material Master – Sales View: General/Plant View
Shipping Data (times in days)
Transportation Group
Defines materials that have the same transportation requirements. For example, bulk stock materials
Loading Group
Defines materials that have the same loading requirements, such as forklift truck, or crane.
Packaging Material Data
Material group Pack Materials
Materials that require similar packaging materials
General Plant Parameters
Negative stock
It indicates if negative stocks of the material are allowed at the plant
Profit Center
It identifies the profit center in the current controlling area
Transportation group
A grouping of materials that share the same route and transportation requirements.
Use
Transportation groups are used for automatic route scheduling during sales order and delivery note processing.
Loading group
A grouping of materials that share the same loading requirements.
The system uses the loading group as well as the
Shipping conditions and
Delivering plant
to automatically determine the shipping point for the item.
January 2008
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27. Material Master - Sales View: Sales Texts
ECC 6.0
January 2008
Material Master - Sales View: Sales Texts
Sales Texts
Sales texts are information to be exchanged throughout the logistics chain
In sales and distribution, this exchange of information is supported by texts in master records and documents
The user may define as many text types as required (e.g., sales texts, shipping texts, internal notes, & supplement texts, etc.) for master records and documents
You store the texts that are to serve as information carriers in the system and in the output in the customer master record, the material master record, and in the sales and distribution documents. In addition the following processing and control functions are supported:
Texts are proposed from the master records in the sales and distribution documents, if you have made the appropriate setting.
Texts can be copied from a reference sales and distribution document into another sales and distribution document (e.g. from an inquiry into a sales order or from an order into a delivery).
The copying of texts can be made language dependent, if required.
You can change copied texts.
You can integrate standard texts into the sales and distribution documents.
January 2008
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28. Material Master – Purchasing View
ECC 6.0
January 2008
Material Master – Purchasing View
General Data
Order Unit
The unit of measure in which a company purchases the product
Purchasing Group
Key for a buyer or a group of buyers, who is/are responsible for certain purchasing activities.
Purchasing Values
Purchasing Value Key
It defines the reminder days and tolerance limits for purchasing
Order unit
Specifies the unit of measure in which the material is ordered.
Procedure
Enter a value in this field only if you want to use a unit of measure differing from the base unit of measure.
If the field does not contain an entry, the system will assume that the unit of measure is the base unit of measure.
Material Group
Key that you use to group together several materials or services with the same attributes, and to assign them to a particular material group.
Use
You can use material groups to:
Restrict the scope of analyses
Search specifically for material master records via search helps
Purchasing Value Key
Key defining the reminder days and tolerance limits valid, as well as the shipping instructions and order acknowledgment requirement of the material for Purchasing.
January 2008
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29. Material Master – Forecasting View
ECC 6.0
January 2008
Material Master – Forecasting View
Number of Periods Required
Historical Periods
The number of historical values the system uses for the forecast
Forecast Periods
Number of period splits for which a forecast should be created
Forecast Values
The numeric quantity for future periods
Consumption Values
The sum of planned and unplanned consumption
January 2008
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30. Material Master – MRP View 1
ECC 6.0
Material Master – MRP View 1
January 2008
General Data
Purchasing Group
The buyer(s) who are responsible for certain purchasing activities
MRP Procedures
MRP Type
It determines whether and how the material is planned
Reorder Point
If stock falls below this point, the system is flagged to create a planned order
MRP Controller
The person(s) responsible for the material planning
Lot Size Data
Lot Size
The lot sizing procedure to calculate the quantity to be produced or procured
Minimum Lot Size
The smallest order quantity
Fixed Lot Size
The quantity to be ordered
Purchasing Group
Key for a buyer or a group of buyers, who is/are responsible for certain purchasing activities.
MRP Type
Key that determines whether and how the material is planned. You have the following options:
manual reorder point planning
automatic reorder point planning
forecast-based planning
material requirements planning with forecasts for unplanned consumption
master production scheduling (MPS)
Reorder point
If the stock falls below this quantity, the system flags the material for requirements planning by creating a planning file entry.
MRP Controller
Specifies the number of the MRP controller or group of MRP controllers responsible for material planning for the material.
Lot size (materials planning)
Key that determines which lot-sizing procedure the system uses within materials planning to calculate the quantity to be procured or produced.
Minimum lot size
Minimum procurement quantity
Fixed lot size
Quantity that will be ordered or produced in the event of a shortage.
January 2008
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© SAP AG and The Rushmore Group, LLC 2008

31. Material Master – MRP View 2
ECC 6.0
January 2008
Material Master – MRP View 2
Scheduling
Planned Delivery Time
Number of calendar days needed to obtain the material
Scheduling Margin Key
Used to determine the floats required for scheduling
Net Requirement Calculation
Safety Stock
It specifies the quantity of safety stock whose purpose is to satisfy unexpectedly high demand in the coverage period
Planned delivery time in days
Number of calendar days needed to obtain the material or service if it is procured externally.
Procedure
If you have different vendors for a material, you must specify an average value. The same applies if you order the material from a fixed vendor that has varying delivery times.
Scheduling Margin Key for Floats
Key that the system uses to determine the floats required for scheduling an order. You define the following floats with the scheduling margin key:
The specified order dates or production dates (scheduled dates) form the starting point for scheduling an order and the scheduling type determines whether the start or finish date is required to do this. Since disturbances and delays in the production process can never be completely avoided, you can plan in additional time floats at the beginning and end of an order (float before production, float after production). You define the duration of these floats in the master record of the material to be produced. Scheduling determines the required dates using these floats.
The float before production is a start float. It has two functions:
It can compensate for delays in the staging of the material components.
If there is a capacity bottleneck at the work centers involved, the production dates can be moved forward in the future. In this way it serves as a float for capacity leveling.
The float after production is a finish float. It is used to compensate for unexpected disturbances in the production process, so that they do not delay the scheduled finish date.
The floats before and after production are defined for each material using a scheduling margin key. This scheduling margin key is automatically transferred from the material master when an order is created. However, you can change the times in the order.
opening period
float after production (only in the case of in-house production)
float before production (only in the case of in-house production)
release period (only in the case of production order management)
Floats are maintained in workdays.
Safety stock
Specifies the quantity whose purpose is to satisfy unexpectedly high demand in the coverage period.
The risk of shortfalls is reduced by having a safety stock.
The safety stock exists to cover both excess material consumption within the replenishment lead time and any additional requirements that may occur due to delivery delays.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

32. Material Master – MRP View 3
ECC 6.0
January 2008
Material Master – MRP View 3
Availability Check
It specifies whether and how the system checks availability and generates requirements for materials planning
Planned delivery time in days
Number of calendar days needed to obtain the material or service if it is procured externally.
Procedure
If you have different vendors for a material, you must specify an average value. The same applies if you order the material from a fixed vendor that has varying delivery times.
Scheduling Margin Key for Floats
Key that the system uses to determine the floats required for scheduling an order. You define the following floats with the scheduling margin key:
opening period
float after production (only in the case of in-house production)
float before production (only in the case of in-house production)
release period (only in the case of production order management)
Floats are maintained in workdays.
Safety stock
Specifies the quantity whose purpose is to satisfy unexpectedly high demand in the coverage period.
The risk of shortfalls is reduced by having a safety stock.
Checking Group for Availability Check
This field has two uses:
1. Specifies whether and how the system checks availability and generates requirements for materials planning.
2. In Flexible Planning, defines - together with the checking rule - the different MRP elements that make up this key figure. The sum of these elements gives the key figure.
Use 1: Availability Checking and Materials Planning
Use
The value you enter for use 1 (see above) is a default value which defines:
Which MRP elements (for example, purchase orders, reservations) the system includes in the availability check
Whether the system checks availability only until the end of the replenishment lead time or whether it checks availability over the entire period for which MRP elements exist
Whether the system generates individual requirements or summarized requirements if you enter sales orders or deliveries for the material
Use 2: Flexible Planning
Dependencies
If you use this field to define the MRP elements of a key figure for Flexible Planning, you must also select Document KF in the Customizing parameters of the information structure.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

33. Material Master – Work Scheduling View
ECC 6.0
January 2008
Material Master – Work Scheduling View
Production scheduler
It specifies the production scheduler
Production Scheduler Profile
It specifies production scheduler profile
Planned delivery time in days
Number of calendar days needed to obtain the material or service if it is procured externally.
Procedure
If you have different vendors for a material, you must specify an average value. The same applies if you order the material from a fixed vendor that has varying delivery times.
Scheduling Margin Key for Floats
Key that the system uses to determine the floats required for scheduling an order. You define the following floats with the scheduling margin key:
opening period
float after production (only in the case of in-house production)
float before production (only in the case of in-house production)
release period (only in the case of production order management)
Floats are maintained in workdays.
Safety stock
Specifies the quantity whose purpose is to satisfy unexpectedly high demand in the coverage period.
The risk of shortfalls is reduced by having a safety stock.
Checking Group for Availability Check
This field has two uses:
1. Specifies whether and how the system checks availability and generates requirements for materials planning.
2. In Flexible Planning, defines - together with the checking rule - the different MRP elements that make up this key figure. The sum of these elements gives the key figure.
Use 1: Availability Checking and Materials Planning
Use
The value you enter for use 1 (see above) is a default value which defines:
Which MRP elements (for example, purchase orders, reservations) the system includes in the availability check
Whether the system checks availability only until the end of the replenishment lead time or whether it checks availability over the entire period for which MRP elements exist
Whether the system generates individual requirements or summarized requirements if you enter sales orders or deliveries for the material
Use 2: Flexible Planning
Dependencies
If you use this field to define the MRP elements of a key figure for Flexible Planning, you must also select Document KF in the Customizing parameters of the information structure.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

34. Material Master – Plant Data/Storage View 1
ECC 6.0
January 2008
Material Master – Plant Data/Storage View 1
General Data
Container Requirements
It defines the regulations that govern which type of container the material must be stored and shipped in
Storage Conditions
It defines the conditions on how a material must be stored or warehoused
Shelf Life Data
Minimum remaining shelf life
Minimum time the material must keep upon goods receipt for the goods receipt to be accepted by the system
Total Shelf Life
Period of time the material will keep in total, from the date of production or receipt to the shelf life expiration date
Container requirements
Key for the regulation that governs which type of container the material must be stored and shipped in.
Storage conditions
Indicates what storage conditions are required for the material.
Minimum remaining shelf life
Minimum amount of time for which the material must keep upon goods receipt for the goods receipt to be accepted by the system.
Total shelf life
Period for which the material will keep in total, that is, from the date of production to the shelf life expiration date.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

35. Material Master – Accounting View 1
ECC 6.0
January 2008
Material Master – Accounting View 1
Current Valuation
Valuation Class
It allows the stock values of materials of the same material type to be posted to different G/L accounts.
It allows the stock values of materials of different material types to be posted to the same G/L account.
It determines together with other factors the G/L accounts updated for a valuation-relevant transaction (Material Movements)
Price Unit
Number of units to which the price refers
Price Control Indicator
Indicates the price control used to valuate the stock of a material. You have the following options:
Standard price
Moving average price
Price Unit
Number of units to which the price refers.
Example
If 10 gallons of gasoline cost $12.00, the price unit is 10.
Standard Price
Standard price of the material
Use
The valuation of material stocks at standard prices means that all goods movements are valuated at the same price over an extended period.
Moving Average Price/Periodic Unit Price
Price of the material. This can be one of the following:
Periodic unit price (only if the material ledger is activated for the material)
The system calculates the moving average price automatically by dividing the material value in the stock account by the total of all storage location stocks in the plant concerned. It changes the price with each valuation-relevant movement.
The system changes the periodic unit price if you settle the material ledger and then save the data.
The valuation of stocks at moving average price or periodic unit price means that the price of the material is adapted to the continual fluctuations in the procurement price.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

36. Material Master – Accounting View 1
ECC 6.0
January 2008
Material Master – Accounting View 1
Current Valuation
Price Control Indicator
The price control used to valuate the stock of a material (e.g., Standard or Moving Average Price)
Standard Price
The valuation of material stocks at standard prices means that all goods movements are valuated at the same price over an extended period
Moving Average Price
The system calculates the moving average price automatically by dividing the material value in the stock account by the total of all storage location stocks in the plant concerned
Price Control Indicator
Indicates the price control used to valuate the stock of a material. You have the following options:
Standard price
Moving average price
Price Unit
Number of units to which the price refers.
Example
If 10 gallons of gasoline cost $12.00, the price unit is 10.
Standard Price
Standard price of the material
Use
The valuation of material stocks at standard prices means that all goods movements are valuated at the same price over an extended period.
Moving Average Price/Periodic Unit Price
Price of the material. This can be one of the following:
Periodic unit price (only if the material ledger is activated for the material)
The system calculates the moving average price automatically by dividing the material value in the stock account by the total of all storage location stocks in the plant concerned. It changes the price with each valuation-relevant movement.
The system changes the periodic unit price if you settle the material ledger and then save the data.
The valuation of stocks at moving average price or periodic unit price means that the price of the material is adapted to the continual fluctuations in the procurement price.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

37. Material Master – Costing View
ECC 6.0
January 2008
Material Master – Costing View
General Data
Overhead Group
It assigns same overhead rate to group
Standard Cost Estimate
Future
Planned cost of material in future
Current
Current standard cost of material
Previous
Historical standard cost of material
Planned Prices
Future price of material
Valuation Data
Valuation Class
Class type for G/L posting
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

38. PEN, Inc. MM Master Data and Records

39. Trading Goods Material Type Materials Views required Account Category
Valuation class
HAWA
BPENxxx
Basic data 1
0005
3100
(Trading Goods)
CPENxxx
Purchasing
PPENxxx
MRP 1, 2, 3
BOXxxx
General Plant data/Storage 1
Accounting 1
Sales: Sales Org. Dta 1
Sales: Sales Org. Data 2
Sales: General/Plant data

40. Operating Supplies Material Type Materials Views required
Account Category
Valuation class
HIBE
TAPExxx
Basic data 1
0002
3030/3031
(Operating supplies)
TISSUExxx
Purchasing
PAPERxxx
MRP 1, 2, 3
FORMSxxx
General Plant data/Storage 1
Accounting 1

41. Raw Materials Material Type Materials Views Required Account Category
Valuation class
ROH
Barrelxxx
Basic data 1
0001
3000/3001/3002/3003
(Raw Material)
Clipxxx
Purchasing
Capxxx
MRP 1, 2, 3
Bandxxx
General Plant Data/Storage 1
Cartridgexxx
Accounting 1
Crownxxx
Costing 1
Standxxx
Giftboxxxx

42. Finished Products Material Type Materials Views created
Account Category
Valuation class
FERT
EPENxxx
Basic data 1
0009
7920
(Finished Products)
ESETxxx
Sales: Sales Org. Data 1
Sales: Sales Org. Data 2
Sales: General/Plant data
MRP 1, 2, 3
Working Scheduling
General Plant Data/Storage
Accounting 1
Costing 1

43. Exercises: (Due date 2/5/2014)
114. Create sales organization
115. Assign sales organization to company code
117. Assign distribution channel to sales organization
120. Assign division to sales organization
122. Set up sales areas
125. Assign plant to sales organization and distribution channel
126. Assign shipping point to plant
127. Create sales views for trading goods
204. Create raw materials inventory account
205. Create finished goods inventory account
206. Create raw materials expense account
207. Create finished goods expense account

44. Exercises: 247. Define storage location for raw materials
248. Create production scheduling profile
249. Create production scheduler
250. Control Parameters for MRP
251. Assign availability check to order type
252. Define scheduling parameters for operations
253. Define control parameters for order type
254. Create confirmation parameters
255.Define valuation for goods received
256. Create material master for raw materials
257. Create material master for finished products