EGN 5620 Enterprise Sys MM Master Data

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Material Management (MM)Master Data & Records

EGN 5620 Enterprise Systems Configuration

Spring, 2012


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MM Master Data & Records

Theories & Concepts


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Enterprise resource types

Human resources

Material

Machine

Tools Equipment

Facility

Utilities Human resource

Capital


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Material data

Definition Physical objects to buy, transform into, sell,maintain other resources, or use in support forbusiness activities.

Generic classification(material types) : Trading goods Raw materials Semi-finished products (WIPs)

Finished products Consumables (e.g., stationery, production tools) Spare parts (for maintenance)


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Material data

Material attributes, grouped by businessfunctions: Application/industry (sector) Engineering (i.e., material properties)

Purchase Production Inventory (MRP) Warehousing Sales

Accounting


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Material Numbering Scheme

Each inventory item must has a uniquenumber. Nave approach: automatic assignment of

material numbers is the best (simplest)choice for simplicity of maintenance.

Intelligent scheme, considering: The length of a material number Numbering scheme: Option 1: use sequential numbers Option 2: use a template to define the meaning of

material numbers, according to: Material type Material property type Material shape and/or Dimensions


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MM Master Data & Records

SAP MM Master Data and Records


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January 2008

SAP AG - University Alliances and

The Rushmore Group, LLC 2008. All

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MM Master Data (review)

Material master data are a part of masterdata, which are relatively fixed

The organizational structures must be

completed before configuring master data


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Business Process Integration


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Master Data (review)

Master data include business rules andsupportive information which are appliedwhile generating master data records

Master data are maintained by individual

data owners in various organizationalunits inside the SAP client


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Master Data records (review)

Each master data record is unique Master data records are usually created or

converted (from a legacy system) at thebeginning of SAP deployment

Material master records are maintained byvarious organization units such as sales,purchasing, production, & accounting, etc.


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Material Master Data Modeling

Capture material attributes thatsufficiently differentiate their: Application/Industry Sector

(Material) Type Maintenance Features

Organizational Levels

Various Business Views


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Material Master Industry Sector

Industry sector is used to group records

It determines industry-specific data thatwill appear on the master record

Industry sector examples:

Chemical industry (C ), Mechanical engineering (M),

Pharmaceuticals (P),

Plant Engineering/Construction (A),

Retail, and so on.


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Material Master Material Type

It is used to categorize materials It defines material attributes of:

Valuation Procurement, and Price control, etc.

It controls transaction (types) allowed forthe material

It controls the screen (view) sequence,number assignment, field selection, and

account determination


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Material Master Material Type

Material type information determines: What views are maintained

Whether internal or external procurement isallowed

whether changes in material quantity need tobe updated

Which general ledger accounts need to beupdated


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Material Master Material Types

SAP standard material types (used in allindustries): ROH (Raw Materials)

Purchased externally only

No sales view

HAWA (Trading Goods) Always purchased externally

Sold without any change to the material

No manufacturing views exist

FERT (Finished Products) Are produced internally

Normally no purchasing views exist


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Material Master More Material Types

HIBE (Operating Supplies)

VERP (Customer returnable packaging)

LEER (Empty containers)

KMAT (Configurable material)

ERSA (Spare parts)

DIEN (Services)

NLAG (Non-stock, non-valuated material)

UNBW (Non-valuated, stocked material)

FHMI (Production resources/tools)

WETT (Competitive products)

PROD (Product group)

IBAU (Maintenance assembly, plant maintenance)


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Material Master Data maintenancefeatures

Default It speeds data entry by using the most frequently used

field values (plant, purchasing organization, etc.)

Reference Material It speeds data entry by copying data from existing

material master Profile

It speeds data entry by copying standard data created ina profile into a selected view Materials RequirementsPlanning (MRP)

Collective entry of storage location data It speeds the creation of multiple storage locations


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Material Master Organization Levels

Material master data can be related to allorganizational levels

General information of material masterrecords (such as description, number,base unit of measure) has to be related tothe highest level of organization (i.e., theclient)

Other material master records are tailoredat the plant or lower levels


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Material Master at Various Organization Levels

Data are visible At client level:

Description

Units of measure

Material number

Engineering data

At plant level:

Planning data

Manufacturing data

Purchasing data At storage Location level:

Stock quantities


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Material Master Primary Views

Basic data 1

Sales: sales organization data 1

Sales: sales organization data 2

Sales: general/plant data

Sales: texts Purchasing

ForecastingBarrel Pen


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Material Master

More Primary Views

MRP: 1 MRP: 2

MRP: 3

Work scheduling General Plant Data/Storage

Accounting 1

Costing 1


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Material Master Basic Data 1 View

General data Basic Unit of Measure Unit of measure in which stocks of the material aremanaged

Material Group Used to group together several materials orservices with the same attributes

Division (areas) Used to determine the sales area and the businessarea for a material, product, or service


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Material Master Basic Data 1 View

Dimensions/EANs Gross weight

Used to check storage capacity in warehouse

Net weight Weight excluding packaging and extras this is needed for

sales and distribution

Weight Unit Unit of Measure for weight

Volume The space that the material occupies per unit of volume


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Material Master sales view 1: sales organization

General Data Base Unit of Measure

The Base Unit of Measure is the unit of measure in whichstocks are managed within your company.

Division You may enter the Division which your product is in for sales

(defaults if entered in the Basic data screen).

Material Group A key thats used to group several materials or services for

analysis/reporting as well as search by match code.

Sales Unit The unit of measure in which the material is sold, if left blank

then uses the base unit of measure.


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Delivering Plant Plant from which the material is available for sale.

Cash discount

Indicator used for materials, which allow for acash discount.

Conditions

Pricing procedure for the material

Tax Data

Tax classification material The indicator with which the system determinesoutput tax for the material when processing salesand distribution-specific documents


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Quantity Stipulations Minimum Order Quantity Minimum quantity a customer may order.

Minimum Delivery Quantity Minimum quantity that may be delivered to acustomer

Delivery Unit The delivery unit consists of a number and a unit

of measure. In the case of a delivery unit of 30pieces, 30, 60, 90, and so on pieces can bedelivered, but not, however, 100 pieces.


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Grouping Terms Material Statistics Group Determine which data the system updates in thelogistics information system

Material Pricing Group A way of grouping materials to which you want toapply the same conditions

Volume Rebate Group Group definition used for rebate settlement.

General Item Category Group Materials grouping that helps the system todetermine item categories during sales documentprocessing.


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Grouping Terms (continued) Item Category Group A grouping of materials that the system uses to

determine item categories during the processingof sales documents. Commission Group Commission group to which the material isassigned.



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Material Master

sales view: general/plant view

General Data Base unit The unit of measure in which items are managedin the company

Gross weight Used to check storage capacity in warehouse

Net weight Weight excluding packaging and extras this isneeded for sales and distribution

Availability check Option to do an availability check for orders andMRP


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Material Master sales view: general/plant view

Shipping Data (times in days) Transportation Group Defines materials that have the same

transportation requirements. For example, bulkstock materials Loading Group Defines materials that have the same loadingrequirements, such as forklift truck, or crane.


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Material Master sales view: general/plant view

Packaging Material Data Material group Pack Materials Materials that require similar packaging materials

General Plant Parameters Negative stock It indicates if negative stocks of the material areallowed at the plant

Profit Center It identifies the profit center in the currentcontrolling area


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Material Master- sales view: sales texts

Sales Texts Sales texts are information to be exchangedthroughout the logistics chain

In sales and distribution, this exchange of

information is supported by texts in masterrecords and documents The user may define as many text types asrequired for master records and documentssuch as: sales texts, shipping texts, internal notes, & supplement texts, etc.)


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Material Master Purchasing View

General Data Order Unit

The unit of measure in which a companypurchases the product

Purchasing Group

Key for a buyer or a group of buyers, who is/areresponsible for certain purchasing activities.

Purchasing Values Purchasing Value Key

It defines the reminder days and tolerancelimits for purchasing


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Material Master Forecasting view

Number of Periods Required Historical Periods The number of historical values the system usesfor the forecast

Forecast Periods Number of period splits for which a forecast

should be created Forecast Values

The numeric quantity for future periods Consumption Values

The sum of planned and unplannedconsumption


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Material Master MRP view 1

General Data Purchasing Group The buyer(s) who are responsible for certainpurchasing activities

MRP Procedures MRP Type It determines whether and how the material isplanned

Reorder Point If stock falls below this point, the system isflagged to create a planned order

MRP Controller The person(s) responsible for the materialplanning


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Lot Size Data Lot Size The lot sizing procedure to calculate the quantityto be produced or procured

Minimum Lot Size The smallest order quantity

Fixed Lot Size The quantity to be ordered


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Scheduling Planned Delivery Time Number of calendar days needed to obtain thematerial

Scheduling Margin Key Used to determine the floats required for

scheduling Net Requirement Calculation

Safety Stock It specifies the quantity of safety stock whosepurpose is to satisfy unexpectedly high demand in

the coverage period


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Availability Check It specifies whether and how the system checksavailability and generates requirements formaterials planning


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Material Master work scheduling view

Production scheduler It specifies the production scheduler

Production Scheduler Profile

It specifies production scheduler profile


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Material Master plant data/storage view 1

General Data

Container Requirements It defines the regulations that govern which typeof container the material must be stored andshipped in

Storage Conditions It defines the conditions on how a material mustbe stored or warehoused

Shelf Life Data Minimum remaining shelf life Minimum time the material must keep upon goodsreceipt for the goods receipt to be accepted by the

system Total Shelf Life Period of time the material will keep in total, fromthe date of production or receipt to the shelf lifeexpiration date


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Material Master Accounting view 1

Current Valuation Valuation Class

It allows the stock values of materials of thesame material type to be posted to differentG/L accounts.

It allows the stock values of materials of

different material types to be posted to thesame G/L account.

It determines together with other factors theG/L accounts updated for a valuation-relevanttransaction (Material Movements)

Price Unit Number of units to which the price refers


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Material Master Accounting view 1

Current Valuation

Price Control Indicator The price control used to valuate the stock ofa material (e.g., Standard or MovingAverage Price)

Standard PriceThe valuation of material stocks at standardprices means that all goods movements arevaluated at the same price over an extendedperiod

Moving Average Price

The system calculates the moving averageprice automatically by dividing the materialvalue in the stock account by the total of allstorage location stocks in the plant concerned


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Material Master costing view

General Data Overhead Group It assigns same overhead rate to group

Standard Cost Estimate Future Planned cost of material in future

Current Current standard cost of material

Previous Historical standard cost of material


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Material Master Costing view

Planned Prices Future price of material

Valuation Data Valuation Class Class type for G/L posting


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PEN, Inc.

MMMaster Data and Records


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Trading Goods

Material Type Materials Views required

Account

Category

Valuation

class

HAWA BPENxxx Basic data 1 0005 3100

(Trading Goods) CPENxxx Purchasing

PPENxxx MRP 1, 2, 3

BOXxxx General Plant data/Storage 1

Accounting 1

Sales: Sales Org. Dta 1

Sales: Sales Org. Data 2

Sales: General/Plant data


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Operating Suppliers

Material Type Materials Views requiredAccountCategory

Valuationclass

HIBE TAPExxx Basic data 1 0002 3030/3031

(Operating supplies) TISSUExxx Purchasing

PAPERxxx MRP 1, 2, 3

FORMSxxx General Plant data/Storage 1

Accounting 1


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Raw Materials

Material Type Materials Views Required

Account

Category

Valuation

class

ROH Barrelxxx Basic data 1 0001

3000/3001/

3002/3003

(Raw Material) Clipxxx Purchasing

Capxxx MRP 1, 2, 3

Bandxxx General Plant Data/Storage 1

Cartridgexxx Accounting 1

Crownxxx Costing 1

Standxxx

Giftboxxxx


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Finished Products

Material Type Materials Views created

Account

Category

Valuation

class

FERT EPENxxx Basic data 1 0009 7920

(Finished Products) ESETxxx Sales: Sales Org. Data 1

Sales: Sales Org. Data 2

Sales: General/Plant data

MRP 1, 2, 3

Working Scheduling

General Plant Data/Storage

Accounting 1

Costing 1


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Exercises:114. Create sales organization115. Assign sales organization to company code117. Assign distribution channel to sales

organization120. Assign division to sales organization122. Set up sales areas

125. Assign plant to sales organization anddistribution channel

126. Assign shipping point to plant127. Create sales views for trading goods204. Create raw materials inventory account205. Create finished goods inventory account206. Create raw materials expense account207. Create finished goods expense account


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Exercises:

247. Define storage location for raw materials

248. Create production scheduling profile249. Create production scheduler250. Control Parameters for MRP251. Assign availability check to order type

252. Define scheduling parameters for operations253. Define control parameters for order type254. Create confirmation parameters255.Define valuation for goods received256. Create material master for raw materials

257. Create material master for finished products

EGN 5620 Enterprise Sys MM Master Data

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