SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

Assignment 3: Creation of materials & field descriptions

Assignment: CREATION OF MATERIAL & ITS

Company: ATOZ SOFT, Peelamedu, Coimbatore Trainee Module : VISHNUVARDHAN J : SAP MM

Created on: 26.04.2013

Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

CREATION OF RAW MATERIAL

After pressing enter following screen appears,

Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

NEXT, choose the industry sector and material type.

Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

STEP: 2 The industry sector mechanical engineering and material type raw material is chosen. Now after pressing the enter key, the following screen appears;

On that above screen, we are selecting the views basic data -1,2,purchasing,mrp 1, mrp-2,3,general plant/storage data, accounting -1, costing-1 After pressing ok button a screen appears where the organizational levels are maintained to create a material for a particular plant and its storage location is assigned.

Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

STEP: 3 After selecting the plant and storage location. Now we are going to create the material.

The mandatory fields in basic data 1 are information on material, base unit of measure, material group. Information on material It is to describe the material in detail .It would be alpha numeric language Base unit of measure - Unit of measure in which stocks of the material are managed. The system converts all the quantities you enter in other units of measure (alternative units of measure) to the base unit of measure. Material group It is use to group together several materials or services with the same attributes, and to assign them to a particular material group. Division - A way of grouping materials, products, or services. The system uses divisions to determine the sales areas and the business areas for a material, product, or service. Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

STEP: 4 After assigning datas on basic data we are switching to purchasing.

The mandatory fields are purchasing group. Purchasing group - Key for a buyer or a group of buyers, who is/are responsible for certain purchasing activities

Internally, the purchasing group is responsible for the procurement of a material or a class of materials. Externally, it is the medium through which contacts with the vendor are maintained.

Batch management - Specifies whether the material is managed in batches.

Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

Automatic po - Defines that purchase orders are generated automatically when purchase requisitions are converted into purchase orders. Purchasing value key - Key defining the reminder days and tolerance limits valid, as well as the shipping instructions and order acknowledgment requirement of the material for Purchasing. GR processing time - Number of work days required after receiving the material for inspection and placement into storage.

Quota arrangement usage - A quota arrangement consists of quota arrangement records identifying the source (such as a vendor or an internal plant), the validity period, and the quota. The entry you make here controls how the total order quantity is calculated in the quota arrangement, and thus which source of supply is determined for the material at a particular point in time. Critical part - Specifies whether the material is a critical part, that is, a particularly important part. Source list - If the indicator has been set for a plant, a source of supply must be entered in the source list before a purchase order can be created for issue to the source for the plant. A source of supply can be an external source (vendor) or an internal one (for example, an enterprise's own plant).

Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

STEP: 5 After assigning datas on purchasing tab we are switching to MRP 1

The mandatory fields are MRP type, MRP controller, lot size. MRP type - MRP type is used to assign the procedure which is used to plan a material and to control which MRP parameters can be maintained for the material in the material master record. MRP controller - Specifies the number of the MRP controller or group of MRP controllers responsible for material planning for the material. Lot size - During MRP, the system creates procurement proposals based on your lot-sizes if there is a stock shortage. By determining lot-sizes you can plan optimal quantities per procurement proposal and thus specifically cover your requirements. The planning of lotCopy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

sizes influences the planning of the available capacity, and the planning of the production or procurement cost

Reorder point - If the stock falls below this quantity, the system flags the material for requirements planning by creating a planning file entry. Planning cycle - Key that determines the day on which the material is planned and ordered. The planning cycle is a planning calendar that is defined in Customizing for MRP. EXAMPLE: Carry out the planning run and place orders every Monday and Tuesday. The materials that are ordered on Monday are delivered on Wednesday and the materials that are ordered on Tuesday are not delivered until Friday. Minimum lot size it is a Minimum procurement quantity of a receipt. If you define a minimum lot size, the system can only create receipts with a procurement quantity that does not fall short of the minimum lot size. To cover a requirement whose requirements quantity (for in-house production plus assembly scrap) falls short of the minimum lot size, the system must create a receipt with the minimum lot size. Fixed lot size - Quantity that will be ordered or produced in the event of a shortage. If the amount of the shortage is greater than the fixed lot size, a multiple of the fixed lot size is procured. The system creates several purchase order proposals for this purpose. Maximum lot size - Quantity that is not allowed to be exceeded during procurement. The system takes this value into account during the automatic lot size calculation for planned orders and production orders. The lot size of the individual orders cannot exceed this value. Maximum stock level - Quantity of the material in this plant that may not be exceeded. If you define a maximum lot size the system can only create receipts with a procurement quantity that does not exceed the maximum lot size. To cover a requirement whose requirements quantity (for in-house production plus assembly scrap) exceeds the maximum lot size, the system must create several receipts accordingly.

Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

STEP: 6 After assigning datas on MRP 1, we are switching to MRP 2 tab.

The mandatory fields are planned delivery time and scheduled margin key

Planned delivery time - Number of calendar days needed to obtain the material or service if it is procured externally. Scheduled margin key - this is nothing but defining Floats for production order floats are maintained in days. the data maintained in material master will be copied in production order this means we are giving time for MRP controller time for Converting plan order to Production order based on Capacities existing, priority of orders etc

Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

Procurement type - Indicator that defines how the material is procured. The following procurements types are possible:

The material is produced in-house. The material is procured externally. The material can be both produced in-house and procured externally.

Special procurement type - Allows you to define the procurement type more exactly. The system determines the procurement type from the material type. If the procurement type is in-house, you can nevertheless force the system to ignore the BOM and routing, and process the material as if it were externally procured, by specifying the special procurement as external. Quota arrangement usage - Quota Arrangements means a material can be obtained from various sources of supply, each individual source of supply can be allocated a quota arrangement. The quota arrangement is valid for a certain period of time and specifies exactly how the receipts are to be distributed amongst each source of supply. You can set the quota arrangement for in-house production as well as for external procurement. Sources of supply can be: - an individual vendor or outline agreement - another plant, from which material should be procured - a production version Backflush - Determines whether the backflush indicator is set in the production order. Each material component is assigned to an operation in the production order. If a material component is back flushed, the system posts the withdrawal only upon confirmation of the operation. The withdrawal is then posted automatically. GR processing time - Number of workdays required after receiving the material for inspection and placement into storage. Safety stock - Specifies the quantity whose purpose is to satisfy unexpectedly high demand in the coverage period. The risk of shortfalls is reduced by having a safety stock. Minimum safety stock - The quantity that defines the lower limit for safety stock. This value cannot be exceeded. The lower limit is checked if you use an availability indicator Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

which shows, according to customizing settings, if the safety stock is to be calculated again in a forecast. If the safety stock is lower than this level in forecasting, the safety stock is automatically increased to the value of the lower level.

STEP: 7 After assigning datas in MRP 2 we are switching to MRP 3

The mandatory field is Availability check

Availability check - This field has two uses: 1. Specifies whether and how the system checks availability and generates requirements for materials planning. 2. In Flexible Planning, defines - together with the checking rule - the different MRP elements that make up this key figure. The sum of these elements gives the key figure.

Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

Strategy group - The strategy group groups all the planning strategies that can be used for a particular material. The planning strategy represents the procedure used for planning a material and is (technically speaking) controlled by the MRP types. Planning material - Material number whose planned independent requirements the system uses to consume the sales order of the material in question if you use the planning strategy, "planning with planning material". The strategy, "planning with planning material" is used if the BOM of a finished product contains variable and non-variant parts. The non-variant parts can be planned using the planning material. STEP: 8 After assigning the datas we are switching to plant data/storage location 1

Some of the fields are storage bin, max storage period, total shell life

Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

Storage bin - Identifies the storage bin within a storage location where the material is stored. Maximum storage period - Maximum period for which the material may be stored. Total shell life - Period for which the material will keep in total, that is, from the date of production to the shelf life expiration date. After pressing enter key it switches to accounting tab

STEP: 9 ACCOUNTING 1

Some of the mandatory fields are valuation class, moving price

Valuation class - The valuation class has the following functions:

Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

Allows the stock values of materials of the same material type to be posted to different G/L accounts. Allows the stock values of materials of different material types to be posted to the same G/L account. Determines together with other factors the G/L accounts updated for a valuationrelevant transaction (such as a goods movement).

Moving price - The system calculates the moving average price automatically by dividing the material value in the stock account by the total of all storage location stocks in the plant concerned. It changes the price with each valuation-relevant movement. The system changes the periodic unit price if you settle the material ledger and then save the data. The valuation of stocks at moving average price or periodic unit price means that the price of the material is adapted to the continual fluctuations in the procurement price. STEP: 10 COSTING 1

Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

In this field we just press enter key and store the datas. Finally the material is created as shown below

MATERIAL 950 IS CREATED

Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438

SAP MM Assignment

ATOZ SOFT, # 4B, 2nd Block, Coral Castle, Peelamedu, Coimbatore:641001, Mob: + 91-8939938438, Mail : info@atozsoft.co.in

Copy rights: _______________________________________________________________________ _ ATOZ Soft, CECL Coral Castle, #4B, 2nd Block, Peelamedu Coimbatore: 641005 Mail:info@atozsoft.co.in, Mobile: +91-8939938438, Tele Phone: 0422-2568438