1. Configuring Materials

2. Slide 2 Materials(Introduction) In general, we buy materials and services from vendors And we sell (some of) them to customers

3. Slide 3 Materials (Introduction) Remember that vendor records have company (FI) and (MM) segments – Materials have many segments too Roughly speaking, these segments are called views Some views are plant-specific. Others are not Views across functional systems are consistent (FI) (MM) (PP)

4. Slide 4 Material Master Views Basic Data 1 Basic Data 2 Classification Sales: Sales Org Data 1 Sales: Sales Org Data 2 Sales: General/Plant Data Foreign Trade: Export Data Sales Text Purchasing MRP 1 MRP 2 MRP 3 MRP 4 Forecasting Work Scheduling General Plant Data/Storage 1 General Plant Data/Storage 2 Warehouse Management 1 Warehouse Management 2 Quality Management Accounting 1 Accounting 2 Costing 1 Costing 2

5. Slide 5 Material Master Views

6. Slide 6 Material Master (Configuring) Using the IMG you must enable materials management for each company code Define whether or not to allow backposting (posting to the previous period)

7. Slide 7 Material Master (Maintenance Status) The Material Master record contains a “maintenance status” field indicating the user department / view Table MARA field VPSTA

8. Slide 8 Material Master (Organizational Units) A material belongs to an industry sector Industry sectors have control functions (screen sequence and field selection) The industry sector cannot be changed after the material has been created SAP predefines selected industry sectors Plant / Chemical / Mechanical engineering / Pharmaceutical / Retail / service provider

9. Slide 9 Material Master (Organizational Units) A material has a type which controls How the materials is procured (internal, external, both) Valuation Material types have control functions too Whether the materials is configurable (able to assign a variant class Material number assignment (internal / external) Create custom types from existing types Procurement (internal / external)

10. Slide 10 Material Master (Material Types) ROH: Raw materials Externally purchased so no sales view HALB: Semi-finished goods Not purchase or sales view because we don’t make or sell FERT: Finished goods Has sales view but no purchasing view

11. Slide 11 Material Master Type (Configuring) From the IMG

12. Slide 12 Material Master Type (Configuring) Select a Material type

13. Slide 13 Material Master Type (Configuring)

14. Slide 14 Material Master (Organizational Units) A material belongs to a material group Material groups are just classification units used to assign attributes to multiple materials in the same group Use transaction code OMSF to create material groups A material belongs to a division Divisions are used to determine sales areas

15. Slide 15 Units of Measure (1) A base unit of measure must be identified for each material master Basically a label All data entered in Material Master (weight, cost, etc.) is related to the base unit of measure Many standard units of measure are already defined in the SAP R/3 system

16. Slide 16 Units of Measure (2) Alternate units of measure can be defined for different uses with the appropriate conversion factor (order unit ) Base unit of measure should be smallest unit of measure used anywhere in the system

17. Slide 17 Units of Measure (Illustration)

18. Slide 18 Units of Measure (Illustration)

19. Slide 19 IAN EPC International Article Numbers (IAN) Universal Product Code

20. Slide 20 Material Master (Configuration) You must set up company codes for materials management (use IMG)

21. Slide 21 Material Master Changes SAP records all changes to material Immediate and future changes

22. Slide 22 Purchasing Info Records Provides a link between a material master record and a vendor master record It provides default information for purchase orders The tables are EINA - Purchase Info Record: General EINE - Purchasing info record: purchasing organization data KONP - Condition Item KONH - Condition Header

23. Slide 23 Purchasing Info Records (Contents) Current price and delivery costs for purchasing organization or plant Number of last purchase order Purchase order price history Tolerance limits for over/under deliveries Planned delivery time for material Vendor evaluation data

24. Slide 24