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.