MM - Materials Management

" "Stock Transport Order

(pg 433) it is a special type of Purchase Order from one plant to another benefit: it is integrated within MRP ability to plan, monitor, and track the process using PO history

"Material Master

-Central source of material specific data -Elminates redundancy -Activities include: Purchasing data for ordering, Inventory management data, Accounting data for material valuation, Materials planning data -Organizational levels: Client level data (data for the entire enterprise), plant level data, storage location data

" "Goods Receipt

-Made in the purchasing phase. -Creates: FI document material document (if goods are non-consumable) CO document -Confirms that the correct material, correct qty, and that perishable goods meet the minimum shelf life. -Updates material master, starts QM inspection, causes an update to stock, consumption, and GR/IR accounts. Also integrates with WM and updates POs and PO history.

" Resources

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" Material Type

A grouping together of materials with the same basic attributes such as raw materials, semifinished products, or finished products. all materials must be assigned to a material type

" "Reservation

A request to the warehouse or stores to keep a material ready for issue at a future date for a certain purpose. The purpose of a reservation is to ensure that a material is available when required. A material can be reserved for a cost center, a plant, or an order.

Operation

An operation is a work step. Each operation is connected to a work center, a quantity of time, and an activity type to tell the planned rate. Has control key.

" Warehouse

An organizational division of a plant for managing materials stored in different places

" "PO History

Details of deliveries effected or invoices received in respect of a purchase order item.

MRP List

Displays the result of the last planning run and is, therefore, static (static means changes made after the planning run don't display)

" SOP

Forecasting and planning tool for setting targets for sales and production based on historical, current, or estimated data

Control Key

Identifies what can happen at this step of the operation/Controls what an operation can do: milestone, routing, printing, and confirmation. Master Data.

" "Purchasing Group

Internally responsible for the procurement of a material or a class of materials The principal channel for a company's dealings with its vendors

"Warehouse Management

Main functions: managing inventory at the storage bin level mapping and control of all goods movements with transfer orders monitoring the processing of all goods movements connecting to mobile data entry as part of the intgrated radio frequency solution connecting to specialized external systems (ex: automated warehouse system) using an interface

"Inventory Management

Management (that is, the recording and tracking) of stocks of materials on a quantity and value basis Planning, entry, and documentation of stock movements such as goods receipts, goods issues, physical stock transfers, and transfer postings Performance of physical inventory (stocktaking)

Non-stock Item

Part of BOM. Not kepy in inventory, procured specifically for the PO. Goes to PO expense immediately. Can buy without a material number. N.

" Confirmation

Recording internal activities against a work center, more specifically recording the amount of time.

"Stock Requirements List

Refer to figure 250. A dynamic list that shows the current levels of stock, requirements and receipts. Reads from planned orders, purchase requisitions, production orders, purchase orders, plant stock, storage location stock, sales orders, and planned inventory requirements that have been updated after the last MRP run.

"Goods Issue

Refer to figure 279. A material withdrawal (ex: frmo inventory into production). When a GI is posted for components of a production order, the following functions are performed: -Material document, FI accounting document, and CO document created -G/L account updated -Printing of Goods Issue (GI) slip -Reservation is reduced -Consumption updated

" Work Center

Says where the work happens and who provides the work. Has a hard connection to a cost center. Stores the available capacity of a particular work center and the data needed to calculate the cost of work completed for activity types at a certain Planned Rate.

" MRP

See figure 239. Material Requirements Planning-uses default planning parameters if MRP-area-specific materal master records don't exist. The main function is to guarantee material availability.

Stock Item

Stored in a warehouse and used in production. L. To enter a stock item, the material must have a material master record with a material type that allows quantities to be updated.

" Material Ledger

The material ledger is the basis of actual costing. It enables material inventories to be valuated in multiple currencies and allows the use of different valuation approaches. S/4HANA makes this a mandatory tool for material valuation.

Demand Management

The planning of requirement quantities and requirement dates for finished products and important assemblies, and definition of the strategy for planning and producing or procuring a finished product.

Account Assignment Category

When you order a material that is either 1) a consumable 2) does not have a material master record or 3) a service, you have to assign an account assignment category to it in the purchasing document: A(Asset), K(Cost center for consumables), P(project), F(production order), C(sales orer). these accounts then get debited after the GR is posted

"Simplification List

With every new release of S/4HANA, the simplification list is updated and describes the simplification items valid for SAP S/4HANA This list is basically a collection of single simplification items with the focus on what has to be considered through an implementation system conversion Components: Description , Business impact and recommendations , SAP notes (pre checks and custom codes analysis)

" "Transfer Posting

a change in the stock ID number or stock category, may or may not change the physical location (stock type to stock type, material to material, consignment to warehouse) this can take place at different organization levels creates a material document and (if relevant for valuation) and accounting document

"Bill of Material

a list of materials/components that I need for manufacturing it is single level but has independent requirements (bike wheel) and dependent requirements (rim, spokes, nuts, etc.) has a header (material name, base quantity, plant) and line items (components and their quantities)

"Plant

a location where goods are produced (manufacturing plant), goods are stored (distribution plant), or services are provided assiigned to a company code

" Independent Requirements

a parent. Example: a bike

" "Stock Transfer

a physical movement of goods (plant to plant, store to store, plant from one comp code to another plant in another comp code) types of procedures: one step: visibility in one plant to visibility in the other plant two step: visibility in one plant to ""in transit"" phase to visibility in the other plant stock transport order this can take place at different organization levels

Availability Check

a set of rules of how you define available and the measurement for availability

Dependent Requirements

child node. An example would be for a bike wheel which is the independent requirement --> tire, rim, spokes, hub, nuts

"Purchase Info Record

convergence of material and vendor info; serves as a source determination when you buy something/make a purchase requisition (examples of what's included: current and future prices and conditions, delivery data, vendor data, contact person, last purchase order number, internal comments and text from the purchase order) this is a form of master data and it can be client specific, purch org specific, or purch org + plant specific helpful because when you create a purchasing document, the system uses data from this to autopopulate fields

" "Condition

differentiates between prices in the system (discounts, surcharges...) These are the terms that you negotiate with your vendor, a one word definition is ""prices"" These are date delimited and the system uses it price determination in a purchasing document

" "Invoice Verification

involves the 3 way accounting match to make sure that the toal invoice receipt amount from the vendor agrees with the ""GR quantity x PO Price"" Effects of Invoice Verification * Updates PO History * Completes procure to pay process * Creates an open item against the vendor * Creates an invoice document then an accounting document * Recalculates the moving average price

Routing

one or more sequences of operations for the production of a material.

"EWM

part of S/4HANA, better than the old ERP EWM - can handle larger warehouses--high performance, high volume warehouse operations - full process transparency - flexible automated processes - comprehensive warehouse management processes - highly integrated with other SAP solutions, can connect to MFS EWM Primary Functions: inventory management at storage bin level storage bin determination for incoming goods stock removal for outgoing goods stock transfers physical inventory management

" Production Variance

represents the difference between actual and planned costs (page 592)

"Movement Type

when you enter a goods movement, you have to choose ma movement type. its basically a key used to differentiate different goods movement (a goods movement is a direction of where am i putting that inventory. examples of goods movement include GR, GI, transfer postings) importance of movement type: it helps determine which stock or consumption accounts the system updats in FI

" External Procurement

when you have to get a material from an outside vendor. to do this, you need a purchase requisition which will eventually turn into a purchase order (fig237)

" "Storage Location

where the material is kept within the plant assigned to a plant, at least one storage location per plant is necessary