ABAP, NetWeaver, ERP Tutorial

Application Area – MM, PP, LE, FI, CO

Overview

Process Create Raw (ROH) Material is one scenario building block in SAP Best Practices Baseline Package (U.S.). Technical name is V7A (Create Raw (ROH) Material).

You need this process when a new raw material is needed during engineering/production.

Company roles involved in process flows: Engineering.

Business Process Procedure

1. Create raw material

Go to transaction MM01. On the initial screen, enter material number, Industry sector and material type. Material number can be assigned internally or externally. Please visit my another post about material numbering. If ECM is active, you will need a change number to create a new material.

Select views which you want to maintain.

2. Maintain Basic Data Views

Here you can maintain the matrial basic information, such as base unit of measure, material group, gross weight, etc.

Material group is used to group together several materials or services with the same attributes, and to assign them to a particular material group.
General item category group helps the system to determine item categories during sales document process. In the standard system, there are normal items, items that signify services and items that signify packing material.

3. Maintain Sales Data Views

You enter material sales data in Sales: sales org. 1, Sales: sales org. 2, Sales: General/plant tab and Sales text tab.

Delivering plant is the plant from which the goods should be delivered to the customer. This setting is copied into sales order item as the default value.
Tax classification with which the system determines output tax for the material when processing sales and distribution-specific documents.

Account assignment group determines which revenue/deduction account will be used when creating accouting document from billing document.

Availability Check specifies whether and how the system checks availability and generates requirements for materials planning. This is the checking group. The checking rule comes from the application. Different application has different checking rule settings. In transaction OPJJ, you can choose which elements will be included into the availability check.
Transportation Group determines A grouping of materials that share the same route and transportation requirements. Suppose that you sell food products, some of which are perishable and require refrigeration. You create a transportation group that includes all the products that need refrigerated trucks for delivery.
Loading Group is a grouping of materials that share the same loading requirements. The system uses the loading group as well as the shipping conditions and delivery plant to automatically determine the shipping point for the item.

4. Maintain Purchasing Data

On the purchasing tab, enter the purchasing group and choose enter. On the the purchase order text screen, enter the text that should appear on purchasing documents for this material.

5. Maintain MRP Data

On MRP1 tab, enter the following values and choose enter.

MRP Type determines whether and how the material is planned. There are lots of MRP procedures like MRP, re-order point, forcast based can be used for planning a materal.
MRP Controller specifies the number of the MRP controller or group of MRP controllers responsible for material planning for the material.
Lot Size is the key that determines which lot-sizing procedure the system uses within materials planning to calculate the quantity to be procured or produced.

On MRP2 tab, enter the following values and choose enter.

6. Maintain Accounting Data

On the Accounting 1 tab, make the following entries and choose enter.

Valuation class determines the G/L accounts that are updated as a result of a valuation-relevant transaction or event such as a goods movement.
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. Price variances (for example, purchase price higher than standard price) upon goods receipt or invoice receipt are posted by the system to price difference accounts. This does not affect the standard price.

Press save button, the raw material is created.