Application Area – MM
Overview
Process Return to Vendor is one scenario building block in SAP Best Practices Baseline Package (U.S.). Technical name is V3I (Return to Vendor).
The return to vendor process begins with a requirement to return an item to a vendor. The initial activity is to request a Returns Material Authorization (RMA) from the vendor. This is a manual step and the RMA number will be entered into a text field in the return PO. The Buyer will then create a Return PO in the system. The return PO is similar to a standard PO except for the return flag which sets up the return delivery to enable shipment of the item(s) back to the vendor.
The Return PO confirmation goes to the Vendor and the Return Delivery is sent to the Shipping department where the item(s) are picked and shipped back along with a Delivery Note. When the Shipping department creates the delivery the item(s) are relieved from inventory. A credit memo is generated which relieves the liability to the vendor.
Company roles involved in process flows: Buyer, Purchasing Manager, Warehouse Clerk and Accounts Payable.
Business Process Procedure
1. Create return purchase order
The return purchase order is exactly the same as standard purchase order except the return flag. Go to transaction ME21N and enter orgnization info, material, vendor and tick the return flag.
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Application Area – MM
Overview
Process Procurement to Stock is one scenario building block in SAP Best Practices Baseline Package (U.S.). Technical name is V3E (Procurement to Stock – From Quotation to Stock Procurement).
In this process, a purchase requisition is either generated by MRP or manually from a requester. A buyer will validate the requisition assign a source of supply. A purchase order will be created based on purchase requisition. The purchase order is subject to approval based on a predefined dollar amount prior to being issued to a vendor.
Goods are shipped from the vendor and received into a location based on fixed parameters proposed from the material master that can be changed at time of transactional data capture that is Purchase Order creation or goods receipt.
The invoice is received from the vendor. Invoices are entered with reference to a purchase order and item. If there are any variances between invoice and purchase order value, the invoive will be blocked and forwarded to buyer for approval. The payment process can be refered in another scenario building block V1C (Fin. Acctg. – AP – Outgoing Payment).
Company roles involved in process flows: Requisitioner, Buyer, Purchasing Manager, Warehouse Clerk and Accounts Payable.
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Application Area – MM
Overview
Process Quotation for Procurement is one scenario in SAP Best Practices Baseline Package (U.S.). In this process a purchasing employee requests quotations for the supply of a specific material from different vendors. A quotation comparison list enables him to select the best source of supply by evaluating the responses/quotations of the relevant vendors. The accepted quotation is later converted into a purchase order and a rejection letter is sent to the vendor(s) whose quotations were rejected.
Company roles involved in process flows: Buyer, Purchasing Manager.
Business Process Procedure
1. Create Request for Quotation
Go to transaction ME41 and create RFQ. Enter RFQ type, Quotation Deadline, Purchasing Orgnization, Purchasing Group, Delivery Date and press enter key.
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Application Area – MM
Overview
Material numbering plays an important role in material management. Every material range from raw material to trading goods must have a unique material number to identity itself in the company. For manufacturing company, there must be a verified material numbering rules to support daily manufacturing activities.
SAP provides two methods for material numbering. One is internal assignment, the other is external assignment. When creating the material master, if leave the material number blank, the system will assign a number automatically, otherwise your entered material number will be checked against the defined number range.
The material number in R/3 is technically defined as an eighteen byte, character field.The logic that formats material numbers is contained in a conversion exit and is controlled by configuration tables, number range objects and standard R/3 customer functions.
Configuration Detail
This configuration setting enables to set up material numbering rule and material number range.
1. Follow the menu path: IMG-Logistics General-Material Master-Basic Settings-Define Output Format for Material Numbers. T-code: OMSL
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Application Area – MM,SD,PP
Overview
Material type is the key that assigns the material to a group of materials such as raw materials, operating supplies or trading goods. The material type has an important role in controlling some material related functions. Below image shows which functions can be controlled by material type.
- Number Range
- Procurement type determines whether the material is pruchased or manufactured in-house.
- User departments defines which views will be displayed in material master.
- Field selection defines whether the fields in material master is hidden or input.
- Account determination determines the account to be posted when material moves in and out of the plant.
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Application Area – MM,SD,PP
Overview
Plant is an orgnizational unit that holds inventory, manufactures products, provides services. A plant is thus a manufacturing facility or branch within the company. A plant can thus be any one of the following locations: regional sales office, central warehouse, manufaturing facility, corporate headquarters, maintainence unit etc. A plant must be assigned to a company code exclusively. A plant must have a minimum of one storage location.
The plant provides the key linkage to the finance orgnization not only from a quantity perspective but also from a valuation perspective. For instance, the valuation class at the plant level drive which account is used for inventory valuation on the balance sheet.
The plant plays an important role in the following areas:
1. material valuation
If the valuation level is the plant, the material stocks are valuated at plant level. If the valuation level is the plant, you can define the material prices for each plant. Each plant can have its own account determination.
2. MRP
Material requirements are planned for each plant. Each plant has its own MRP data. Analyses for materials planning can be made across plants.
3. inventory management
The material stocks are managed within a plant.
4. plant maintainance
If a plant performs plant maintenance planning tasks, it is defined as a maintenance planning plant. A maintenance planning plant can also carry out planning tasks for other plants (maintenance plants).
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Application Area – MM
Overview
Storage location is an orgnizational unit that allows you to differentiate between various types of stock in a plant. Stocks of material can be managed within a plant in different storage locations. Each storage location can be used for different purpose, such as raw material stock, semi product stock, finished good stock. Storage location is the minimum orgnization structure in MM. But in WM, the storage location can be assigned to a warehouse, the accurate stock management can be performed in the storage location.
Configuration Detail
This configuration setting enables to define the physical storage location. This will indicate where the stocks are stored physically inside the plant.
1. Follow the menu path: IMG-Enterprise Structure-Definition-Material Management-Maintain Storage Location. T-code: OX09
2. Enter the plant where the storage location is to be created. E.g. K001. The storage location must be assigned to a plant.
