SAP Material Management Document

The main objective of this document is to provide a Business Requirement document of SAP Material Management. This document gives a brief introduction about the various features of SAP Material Management Software. The document will give an explanation how this software could enhance the productivity of any organization and how to implement it to gain the maximum gains out of it. SAP is an enterprise information software which gives a cutting edge to any organization which uses it, so it is required to give the description of the same in brief. The information has been described in detailed in the following pages.
Purpose of the Document
The document would give brief about.

The functionality of SAP Material Management with a brief description of the same
The various features and characteristics of SAP Material Management which make it useful to the market.
The document will guide through various aspects and pros and cons of using SAP Material Management.

SAP is abbreviation for System Application and Product in data processing. SAP is the the third largest software provider in the world. It was founded by 5 IBM employees back in 1972 in Walldorf, Germany.
SAP is basically an enterprise resource planning software (ERP) which is designed to incorporate resource management, manage data and perform process which are essential for business activities as in gaining and working around orders, billing of activities and HR management. SAP sits upon real time activity, It can be configured accoriding to the demand in the market. That is one of the most advance feature of SAP that it is very user friendly and readily adaptive to changes and requirements.
This help in achieving the goal in a very short time period, as the customer needs and requirement keep on changing constantly hence this module is designed in such a way so as to accommodate the changes as soon as possible.
SAP combines both time and cost and integrate all the data in a single module. Companies use SAP to keep up with their business demands.
SAP MM known as SAP Material Management system. SAP Material Management works in the business activities as follows.

A business course in SAP is labelled as “Module”.
SAP Materials Management (MM) is a fragment of Logistics area and provide  to handle  the obtaining course of an organization from procurement.
It compliments all features of material management (decision making, regulate etc.).
It is the mainframe of the Logistics area which includes features like Marketing and Sales, Design Development, Plant Control, Project Feasibility, Warehouse Development and design which are very dependent on Materials Management module.

Features of SAP MM
The basic functionality and features of SAP MM system are:

SAP MM module of SAP deals with material and inventory management
Material Management module takes charge of the fact that there is no gap in the material which can hinder the Supply chain process in any company. SAP MM expedite the obtaining and material handling activities taking into account both time and cost factors.
It works with detailing the material management (both the services and delivery output) modules of an identity with the focus on keeping up the efficiency, decimating various cost factors and improving the overall productivity and also be able to handle the real time changes.
It works with the Procurement handling, managing the mater data for both the client and vendor, account recognition and evaluation of the various materials, Inventory management and invoice authentication, Material requirement handling and Planning.

Benefits of SAP MM
Most business associations need to deal with a procedure that starts with sourcing and acquisition of various types of materials and assets. In this way, from the time that such acquirement starts, to the time that the installment is finished, there is the need for a procedure that is proficient, viable and bodes well also.
Also, this is precisely where SAP MM becomes possibly the most important factor. With such learning levels, a business association can appreciate:

Better seller administration,
Streamlined information stockpiling, recovery and use,
Better buying systems,
Smoother stock administration,
Higher nature of materials assessment and
Overall change in quality control also.

Considering the way that low quality materials will cut down the general nature of the completed merchandise or items, each business association will in reality need to put resources into smooth materials administration forms.
A portion of the advantages of SAP MM touch upon key viewpoints, for example,

A superior comprehension of hierarchical structure,
Better control over coordinations and receipt check,
Clearer comprehension of various buy methodology,
Forecasting materials prerequisites,
Creating and utilizing MIS or Management Information Systems with particular reference to materials administration.

SAP MM Process Flow
The run of the mill acquirement cycle for an administration or material comprises of the accompanying stages:
1. Assurance of Requirements
Materials necessities are distinguished either in the client offices or through materials arranging and control. (This can cover both MRP appropriate and the request based way to deal with stock control. The consistent checking of stock levels of materials characterized by ace records, utilization of the request point strategy, and anticipating on the premise of past use are imperative parts of the last mentioned.) You can enter buy demands yourself, or they can be produced consequently by the materials arranging and control framework.
2. Source Determination
The Purchasing segment helps you recognize potential wellsprings of supply in view of past requests and existing longer-term buy assentions. This speeds the way toward making demands for citation (RFQs), which can be sent to sellers electronically by means of SAP EDI, if wanted.
3. Seller Selection and Comparison of Quotations
The framework is fit for recreating evaluating situations, permitting you to think about various distinctive citations. Dismissal letters can be sent naturally.
4. Buy Order Processing
The Purchasing framework receives data from the demand and the citation to help you make a buy arrange. Similarly as with buy demands, you can create Pos yourself or have the framework produce them consequently. Merchant planning assentions and contracts (in the SAP System, sorts of longer-term buy understanding) are likewise upheld.
5. Buy Order Follow-Up
The framework checks the update time frames you have determined and – if important – consequently prints updates or expediters at the predefined interims. It likewise furnishes you with an a la mode status of all buy demands, citations, and buy orders.
6. Products Receiving and Inventory Management
Products Receiving work force can affirm the receipt of merchandise essentially by entering the Po number. By indicating passable resiliences, purchasers can confine over-and underdeliveries of requested products.
7. Receipt Verification
The framework bolsters the checking and coordinating of solicitations. The records payable representative is told of amount and value fluctuations in light of the fact that the framework has entry to PO and products receipt information. This speeds the procedure of inspecting and clearing solicitations for installment.
Regular Tables utilized by SAP MM:
The following are couple of essential Common Tables utilized as a part of Materials Management Modules:
EINA Purchasing Info Record-General Data
EINE Purchasing Info Record-Purchasing Organization Data
MAKT Material Descriptions
MARA General Material Data
MARC Plant Data for Material
MARD Storage Location Data for Material
Pole Material to BOM Link
MBEW Material Valuation
MKPF Header-Material Document
MSEG Document Segment-Material
MVER Material Consumption
MVKE Sales Data for materials
RKPF Document Header-Reservation
T023 Mat. bunches
T024 Purchasing Groups
T156 Movement Type
T157H Help Texts for Movement Types
MOFF Lists what sees have not been made
A501 Plant/Material
EBAN Purchase Requisition
EBKN Purchase Requisition Account Assignment
EKAB Release Documentation
EKBE History per Purchasing Document
EKET Scheduling Agreement Schedule Lines
EKKN Account Assignment in Purchasing Document
EKKO Purchasing Document Header
EKPO Purchasing Document Item
IKPF Header-Physical Inventory Document
ISEG Physical Inventory Document Items
LFA1 Vendor Master (General area)
LFB1 Vendor Master (Company Code)
NRIV Number range interims
RESB Reservation/subordinate prerequisites
T161T Texts for Purchasing Document Types
Exchange Codes:
RFQ to Vendor – ME41
Raising Quotation – ME47
Examination of Price – ME49
Production of PO – ME21N
Products Receipt – MIGO
Receipt (Bill PAssing) – MIRO
Products Issue – MB1A
Physical Inventory – MI01( Create doc)
MI04 (Enter Count)
MI07 (Post)
SD Process Flow:
The business archives you make are singular reports however they can likewise frame part of a chain of between related records. For instance, you may record a client’s phone request in the framework. The client next solicitations a citation, which you then make by alluding to the request. The client later submits a request on the premise of the citation and you make a business arrange with reference to the citation. You send the merchandise and bill the client. After conveyance of the merchandise, the client claims credit for some harmed products and you make a for nothing out of pocket conveyance with reference to the business arrange. The whole chain of reports – the request, the citation, the business arrange, the conveyance, the receipt, and the ensuing conveyance for nothing out of pocket – makes a record stream or history. The stream of information from one record into another decreases manual movement and makes issue determination less demanding. Request and citation administration in the Sales Information System help you to arrange and control your deals.
Exchange Codes:
Request – VA11/VA12/VA13
Citation – VA21/VA22/VA23
Deals Order – VA01/VA02/VA03
Conveyance – VL01N/VL02N/VL03N
Charging/Invoicing – VF01/VF02/VF03
Procurement Processing
To do with the business requirement all the organizations need materials. The Procurement process deals with the purchase of materials and taking services from various vendors. The whole Procurement activity should be facilitated so that it accounts for all the right measurement of the material accumulated at right time and at right cost. The procurement processing is further divided into following:

Basic Procurement
Special Procurement

Basic Procurement
Basic procurement is the activity of gaining or acquiring the services or material in the required amount with keeping onto account the cost and time. Hence the process of getting the services and equipment and supplies from the vendors in the right quantity and at right time is called procurement. The whole idea of Procurement I to strike the right balance for example:

Organizations generally keep the inventory to a low as the inventory management costs are quite high but at the same time if there is shortage of raw material during production activity it can cost to the company a lot.
Everyone always try to get the best price for any service but also balance between the product quality, vendor relationship and availability is also very important.

Procurement Lifecycle
Most present day associations acquisition take after some consecutive strides which are depicted underneath:
1.Requirement and Information Procurement:
Acquisition handle begins with get-together data about item and its amount. At that point for required items and administrations, it is important to search for providers who can fulfill the necessities.
2.Supplier Contact
In the wake of social occasion necessities one will search for the providers who can satisfy the prerequisites. In light of that citation demand or data demand can be reached can be made with them.
3.Background Review
Once the provider is known item/benefit quality is checked, and any necessities for administrations, for example, establishment, guarantee and its support are examined. A few specimens of the items can be acquired for quality examination.
4.Negotiation
A few arrangements with providers is made in regards to value, accessibility and conveyance timetable of the items/administrations. After this an agreement is marked that is a coupling authoritative report amongst provider and requesting party. An agreement will incorporate all fundamental data like cost and amount of material, conveyance date, and so on.
5.Order Completion
Requested material will be dispatched, conveyed to the requesting gathering and provider is paid as needs be. Preparing and Installation of item or administrations may likewise be incorporated.
6.Consumption, Maintenance and Disposal
As the items/administration is devoured the execution of the items or administrations is assessed and any subsequent administration bolster if required is dissected.
7.Contract Renewal
Once the item or administrations are devoured or contract lapses and should be reestablished, or the item or administration is to be re-requested, organization involvement with merchants and specialist co-op is inspected. In the event that the items or administrations are to be re-requested, the organization chooses whether to arrange from past provider or consider new providers.
The Basic Procurement is further divided into two subparts:

Procurement for Stock Vs Consumption
External Vs Internal Procurement

Procurement for Stock Vs Consumption
These two points gives the demarcation between the Stocks Vs Consuption:

For Stock- A stock material is a material that is kept in stock. These materials are kept in stock once got from the merchant. The supply of this material continues expanding or diminishing in light of measure of the amount got or issued. To arrange a material for stock, the material must have an ace record inside the framework.
For Consumption-At the point when acquirement is for direct utilization i.e. it will be expended when it is gotten, the client ought to indicate the utilization reason. To arrange a material for utilization, the material may have an ace record inside the framework.

External Vs Internal Procurement
Below given points gives the difference between the External and Internal Procurement

External- It is the way toward securing merchandise or administrations from outer sellers. There are 3 essential types of outside acquisition by and large bolstered by the Purchasing segment of IT framework.
One time orders are for the most part utilized for material and administrations that are requested unpredictably.
For materials that are being requested consistently and in huge amounts, we can arrange manage the merchant (vendor) for evaluating or conditions and record then in an agreement. In an agreement you likewise indicate the legitimacy date.
In the event that a material is requested on a regular premise and is to be conveyed by correct time plan, then you set up a planning understanding.
Huge corporate associations may claim different separate organizations or organizations. Inside Procurement is procedure of getting material and administrations from among indistinguishable organization. In this way, each of these organizations keeps up an entire accounting framework with particular Balance, Profit and Loss Statements so when exchange happens between them it will be recorded.

Unique Procurement
Unique stocks will be stocks that are overseen contrastingly as these stocks did not have a place with organization and these are being kept at some specific area. Exceptional acquisition and unique stocks sorts are isolated into the consequent regions.
Dispatch Stocks
Material that is accessible at our store premises, in any case despite everything it has a place with the merchant (dealer)/Owner of the material. In the event that you use the material from dispatch stocks, then you need to pay to the merchant.
Outsider preparing
In outsider preparing, an organization passes on a business request to partner outer merchant (vender) who sends the products specifically to the client. The business request is not prepared by your organization, however by the merchant (vender). Outsider things can be entered in buy orders, buy requests and deals orders.
Pipeline taking care of
In pipeline taking care of, the organization needs not to request or store the material included. It is possible as and when required by means of a pipeline (for instance, oil or water), or another style of link, (for example, power). The material that is devoured is settled with the merchant (vender) all the time.
Returnable Transport Stock
The organization orders merchandise from a seller (vender). The products are conveyed with returnable transport bundling (beds, compartments) that has a place with the merchant (vender) and is put away on the client premises until they return it to the organization.
Subcontracting
The seller (the subcontractor) gets segments from the requesting party with the assistance of which it delivers an item. The item is requested by your organization through a buy arrange. The segments required by the merchant (dealer) to fabricate the requested item are recorded in the buy request and gave to the subcontractor.
Stock exchange utilizing stock transport order
Products are obtained and provided inside an organization. One plant arrange the products inside from another plant (accepting plant/issuing plant). The products are secured with an extraordinary sort of procurement request – the stock transport arrange. You’ll have the capacity to demand and screen the exchange of merchandise with a stock transport arrange.
SAP MM-Organization Structure
Association structure is the system of organization as per which business is led in each. Organization structure comprises of many levels which have relationship to some. Association structure is additionally alluded as big business structure. Venture structure is comprised of numerous hierarchical units having association with each other.
SAP Implementation Guide
At the point when customer buys SAP it arrives in a CD in type of programming. At the point when SAP is initially introduced, SAP has its standard set up that should be arranged by need of customer i.e. association.
Setup of SAP programming like include fields, to change handle names, to alter drop down records and so forth to modify as indicated by working of your association is done through usage control known as IMG. IMG is the place we characterize venture structure and different settings that are required for working of SAP programming as indicated by need of an association.
SAP IMG Path
To do any sort of arrangement as per our association require the initial step is to achieve the execution (IMG) control screen. We can achieve usage control in 2 ways:

Menu way
Value-based code

Menu way
We can explore through the accompanying way to contact IMG:
SAP Easy Access => Tools => Customizing => IMG => Execute Project
SAP IMG Path
Value-based code
Best and basic approach to connect any SAP screen is TCode i.e. value-based code. Value-based code to connect IMG: SPRO (SAP Project Reference Object). Enter the Transaction code in order field and afterward tap on enter.
SAP TCODE
SAP IMG
IMG screen can be connected quite recently by taking after the underneath steps:
After SPRO, on the following screen tap on SAP Reference IMG.
SAP IMG
Next Screen will show up as takes after. This is the last screen from where we can do setups.
SAP Display IMG
Each association has some system or some structure is characterized by the entire business runs. Endeavor structure is the structure that speaks to an undertaking in SAP ERP framework. It is subdivided into different hierarchical units which for lawful reason or business related reason are assembled together.
Endeavor structure characterizes different levels in an association. These levels are set by chain of importance. Every level has some particular usefulness connected with it, which combinedly portrays the working of an association. Likewise endeavor structure characterizes different authoritative units that are available in an undertaking. The Organizational Structure in MM comprises of taking after Organizational Levels:

Customer
Organization Code
Plant
Capacity Location
Acquiring Organization
Acquiring Group

Taking after graph is one such authoritative structure which depicts the levels consolidated in an association. Customer being at the highest, trailed by numerous organization code, trailed by various plants, plants having different capacity area with their own particular or brought together buying associations.
Customer
The basic clarification of Client is as per the following:

Customer is a business authoritative unit in R/3 framework.
It has its own arrangement of ace information with autonomous table sets.
As per progression, Client is at most elevated amount in SAP framework.
Information that is kept up at customer level is legitimate for every single authoritative level.

Organization Code
The key clarification of Company Code is as per the following:

Inside Client, Company code is the free bookkeeping unit.
It is a legitimate substance that has its own benefit, misfortune and adjust proclamation.
It is the littlest unit in association for which a total free record set can be reproduced.

Plant
The central clarification of Plant is as per the following:

Plant is an authoritative unit inside an organization where exercises happen. A plant will create merchandise and makes products accessible for the organization.
It is unit having fabricating office, stockroom conveyance focus or a local deals office inside calculated. It subdivides a venture in various viewpoints.

Capacity Location
The basic clarification of Storage Location is as per the following:

Capacity area is an authoritative unit which really separates between various material stocks in a Plant.
Capacity area is a place where stock is kept physically.
Plant can comprise of different stockpiling area. All information is put away at capacity area level for a specific stockpiling area.

Obtaining Organization
The crucial clarification of Purchasing Organization is as per the following:

Obtaining Organization is an authoritative unit under organization or plant which is in charge of acquisition exercises as per prerequisites. It is in charge of outside Procurement.
Obtaining association can be at customer level i.e. brought together buying association.
Obtaining association can be at organization or plant level i.e. organization particular or plant particular

Diverse types of buying can be portrayed as takes after:
Incorporated Purchasing
Acquiring association is not doled out to any organization code it obtains for all organization codes having a place with various customer.
Organization particular Purchasing
Buying association is alloted to an organization code just, Plant having a place with the organization code can buy through this Purchasing association.
Plant particular Purchasing
Buying association is alloted to a Plant, just this particular Plant can buy through this Purchasing association.
Buying Group
The basic clarification of Purchasing Group is as per the following:

Obtaining gathering is an authoritative unit which is in charge of ordinary acquisition exercises inside an association.
It is a purchaser or gathering of purchaser in charge of obtainment exercises in an acquiring association.

Prerequisite Analysis
SAP MM gives usefulness to keeping up the accompanying expert information:

Materials
Administrations
Merchants
Acquiring Info Records
Source List
Merchant Evaluation Criteria
Conditions (Commercial)
Installment Terms

Proposed Business Process:
Materials:
The material doc contains data on every one of the materials that an organization acquires or delivers, stores, and offers. It is the organization’s focal hotspot for recovering material-particular information. This data is put away in individual material ace records.
The material master is utilized by all parts in the SAP Logistics System. The incorporation of every material dat in a solitary database protest kills repetitive information stockpiling. In the SAP Logistics System, the information contained in the material ace is required, for instance, for the accompanying capacities:
In Purchasing for requesting
In Inventory Management for products development postings and physical stock
In Invoice Verification for posting solicitations
In Sales and Distribution for deals arrange preparing
In Production Planning and Control for material prerequisites arranging, booking, and work planning
Vendor Master
Benefit ace records, in which depictions of all administrations that may should be obtained can be put away
Vendor Master
Information in merchant ace records controls how exchange information is posted and handled for a seller. The seller ace record additionally contains every one of the information you require to work with your merchants.
The ace record is utilized in Accounting as well as in Materials Management. By putting away seller ace information midway and sharing it all through your association, you just need to enter it once. You can avert irregularities in ace information by keeping up it midway. On the off chance that one of your merchants changes their address, you just need to enter this change once and you’re bookkeeping and obtaining offices will dependably have exceptional data.
Buy information records
You utilize this part in the event that you wish to store data on a merchant and a material as ace information at obtaining association or plant level. You can make obtaining data records for various acquirement sorts (standard, subcontracting, pipeline, dispatch).
Source List
The source rundown is utilized as a part of the organization of wellsprings of supply.
It indicates the permitted (and prohibited) wellsprings of a material for a specific plant inside a predefined period. Every source is characterized by method for a source list record.