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    DAY 2 SAP MM Basics

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    vd sa

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    DAY 2 SAP MM Basics

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    vd sa

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    vd sa

    Copyright:

    © All Rights Reserved
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    Download as doc, pdf, or txt
    5 views8 pages

    DAY 2 SAP MM Basics

    Uploaded by

    fl.munaff
    vd sa

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 8

    SAP MATERIALS MANAGEMENT

    DAY 2

    Introduction to SAP MM

    Exploring MM Module in SAP

    In a company various transactions related to goods or materials, such as


    maintaining records and invoicing the purchase orders, need to recorded on
    regular basis. The SAP system provides the MM Module to store all these
    transaction details in the form of organizational data. The MM Module is the
    core Module of the mysap ERP system, as it helps to implement the supply
    chain. The Module allow you to plan for future production on the basis of
    post consumption trends.

    Role of MM Module in SAP

    In the world of Business, the movement of goods or material from a vendor


    to company and finally to a customer is termed as supply chain. This chain
    is implemented in the mysap ERP system with the Help of MM Module. The
    Mm Module allows a company to control its inventory, forecast customer
    Demand, and keep itself updated on all the transactions of supply chain.

    The Instant transfer of information among various Modules of the SAP


    System facilitates smooth functioning. The MM Module helps to transfer the
    information, such as order details, the status of the Inventory in the storage
    location, and the delivery status, to other modules.

    Example:

    Consider a scenario where a customer places order of 50 items in a


    company. Now suppose that 20 items are already available in the
    Warehouse; therefore, the company has to manufacture 30 items to fulfill the
    order. The details of this order are maintained in the SD module of the
    mysap ERP system, which are further forwarded to the MM Module after
    checking the availability of items in stock. The movement of details from
    one module to another module is known as flow of Information.

    SAP MM CONFIGURATION

    SAP MM ENTERPRISE CONFIGURATION

    CLIENT -800
    Johnson

    Johnson Pharma JohnsonElectronics


    COMPANY CODES

    New Maryland Chicago


    Jersey Plant Plant Plant

    000 000 000 000 000 0003 0001 000 0003


    1 2 3 1 2 2

    PUR ORG PUR ORG PUR


    ORG
    Enterprise Structure Details:

    DEFINITION:

    Company Name: GE GE IN SAP


    Company Codes: GE PHARMA GEPH/OR ALPHA NUMERIC

    GE- 800

    Plants: LOCATION DEFINED

    1. NEW YORK NYK1 SAP CODE


    2. NEW JERSEY NJ01 “
    3. OHIO OH01 “

    Storage Locations:

    PLANT :/SL STORAGE LCOATION

    NYK1 : 0001, 0002, 0003

    NJ01 : 0001, 0002, 0003

    OH01 : 0001, 0002, 0003

    Pur Org: NY01 NJ01 OH01

    Pur group: NY1/NJ1/OH1

    ASSIGNMENT

    COMPANY CODE TO COMPANY


    PLANTS TO COMPANY CODE
    PUR ORGANIZATION TO PLANTS
    PUR ORG TO COM CODE
    Company:

    SAP defines a company code as the smallest organizational unit for which
    legal financial statements can be prepared. A Company can contain one or
    more company codes, but they must use the same chart of Accounts and the
    same fiscal year breakdown. SAP defines a company and company code
    separately.

    SAP defines a company code as the smallest organizational unit for which a
    complete self contained set of accounts can be drawn up. You will be able
    provide data for generating balance sheets and profit-loss statements. For
    example when a customer is deciding on its organizational structure, the
    customer can use one or more company codes. If a U.S Company has
    components of its organization in Canada and Mexico, it may decide that it
    should use three company codes. The company code currencies can be
    different for each component, but they would be required to use the same
    chart of accounts.

    Company Code:

    The creation of a company and company codes is usually part of the


    Financials configuration, but you may need to create these on occasion.

    It is a Separate legal entity or separate accounting department under this


    level accounts are maintained by FI Consultants.
    Purchasing Organization:

    It is responsible to procure material or service by negotiating terms and


    conditions from an external vendor or from internal plant. A Purchase
    Organization is responsible is performing all purchase activities in an
    Organization.
    /
    It helps to perform the tasks required to complete the purchase process, such
    as studying the requirement of purchase, preparing the purchase requisition,
    and request of quotation documents, analyzing the documents, and preparing
    purchase orders. In a large organization purchasing can done at different
    levels starting from the enterprise levels. Therefore the purchasing
    organizations can be established at the following levels.

    Purchasing Organization at Enterprise Level:

    Refers to the purchasing organization that is set up at the highest level in an


    enterprise. In this level the purchasing organization executes the purchasing
    activities for all the units of an enterprise, such as companies, plants, storage
    locations and warehouses. One of the most common advantages at this level
    is the facility to closely monitor the purchasing process. On the other hand
    the major concern of establishing the purchasing organization at the
    enterprise level is the delay in finalizing the purchasing process for the units
    of the enterprise.

    Purchasing Organization at Company Level:

    Refers to the Purchasing Organization that is setup for each company in an


    organization. In this level the purchasing organization execute the
    purchasing activities of the company under which it is created.

    Purchasing Organization at Plant Level:

    Refers to the Purchasing organizations that are setup at plant level. It is


    advisable to set up the purchasing organization at the plant level for large
    organizations, such as petroleum refineries, crude oil production companies,
    and highly customized manufacturing firms. In all these organizations
    the purchasing organization is established on the basis of various important
    factors, such as availability of raw materials, distance between the raw
    material producing organization as well as the plant, and timely availability
    of the raw materials.

    Purchasing Organization Types:

    1. Plant Specific or Local Plant Purchasing Organization


    2. Cross Plant Purchasing Organization
    3. Cross Company Code Purchasing Organization
    4. Central Purchasing Organization
    5. Standard Purchasing Organization
    6. Reference Purchasing Organization

    Note: One Purchasing Organization can be assigned to only one company


    Code. But one company code can have multiple Purchasing Organizations.

    When Central Purchasing Organization involves and what is the


    advantage of it?

    If material is required in bulk for several plants then central purchasing


    Organization involves and the advantages is better prices are possible.

    Plant:

    It is a manufacturing unit or any operational unit or a sales branch. The


    definition of a plant depends on its use. From a MM view a plant can be
    defined as a location that holds valuated stock. A PP view defines a plant as
    an organizational unit that is central to planning production. A Plant can also
    can defined as a location that contains service or maintenance facilities. The
    definition of a plant will vary depending on the need of the customer.

    In Industry terminology a manufacturing facility is called a plant. In an SAP


    system, a plant can be a manufacturing facility, sales office, corporate head
    office, maintenance plant, or central delivery warehouse. In general the plant
    can be nay location with a company code that is involved in some activity
    for the Company Code
    Pre-requisites for a Plant

     Factory Calendar
     Country Key
     Region Keys

    Factory Calendar:

    A factory calendar identifies the workdays, public holidays, and company


    holidays. The SAP system is delivered with some factory calendars, but a
    new factory calendar can be configured based on a company’s schedule. The
    factory calendar is defined as a two character field.

    Country Key:

    A country key is required to define a Plant. The system is delivered with


    country keys, and new country codes need to be configured if they are not in
    the system. For example United States is represented by US, Switzerland
    represented by CH, and so on.

    Region Keys:

    A region code is required along with country code. The region is defined as
    a state or province associated with a country.

    Storage Location:

    Keeping the stock of material in a place is known as Storage Location

    MM ORGANIZATION LEVELS

    Purchase Organization (Top Level in MM)


    Plant (Middle Level)
    Storage Location (Least Level in MM)

    Master Clients
    000
    001

    IDES
    810
    800

    Early Watch Client


    006

    In real time Basis people defines new client and in that clients only we will
    work.

    In SCC4 t code we can see the clients list.

    EC01 TO SEE COMPANY CODE STRUCTURE

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