SAP Basics - Materials Management (MM)

Materials Management (MM) - What is the four (4) levels in the Organizational Structure of MM?

- Client - Company Code - Plant - Storage Location

Materials Management (MM) - - Pay-to-Procure Process --- (All) What are the Eight (8) steps to the Procurement Process?

1) Purchase Requisition (PReq) 2) Vendor Selection 3) Purchase Order (PO) 4) Notify Vendor 5) Vendor Shipment 6) Goods Receipt (GR) 7) Invoice Verification 8) Payment to Vendor

Materials Management (MM) - - Procurement Process --- (Step 3) Purchase Order (PO) What five (5) ways can a PO be created?

1) Reference a PO (e.g. previous order) 2) Reference a PReq (e.g. previous request made to a vendor) 3) Reference a RFQ/Quotation

Materials Management (MM) - - Procurement Process --- (Step 3) Purchase Order (PO) What five (5) ways can a PO be used?

1) Standard 2) Services 3) Subcontracting 4) Third-party 5) Consignment

Materials Management (MM) - What five (5) Master Data are associated with MM?

1) Vendor Master Data 2) Material Master Data 3) Purchasing Info Record 4) Condition Master Data 5) Output Master Data

Materials Management (MM) - What are the functions of a Purchasing Organization?

People responsible for the company's purchasing strategy.

Materials Management (MM) - - Vendor Master Data --- Views ----- Purchase Org Data What info can be found in the Purchase Organizational Data?

Purchasing Data / Materials Management (MM) - Purchasing currency - Salesman's name - Vendor partners

Materials Management (MM) - - Procurement Process --- (Step 6) Goods Receipt (GR) What is a Goods Receipt?

(1 of 4) movement of goods, where we receive a shipment.

Materials Management (MM) - - Procurement Process --- (Step 6) Goods Receipt (GR) What are the three (3) steps prior to the Goods Receipt process?

(Pay-to-procure Process Steps 3 thru 6) Step 3 - Purchase order (PO) (initiated by our company) Step 4 - Notify vendor Step 5 - Vendor Shipment Step 6 - Goods receipt

Materials Management (MM) - - Materials Master Data --- Views ----- (All) What Views are provided in the Materials Master Data?

- Basic Data - Sales Data - Purchasing Data - Material Planning Data - Forecasting Data - Storage Data - Quality Data - Accounting Data - Controlling Data

Materials Management (MM) - What are the eight (8) Functionality basics of MM?

- Inventory Management - Purchasing - MRP - Physical Inventory - Valuation - Service Master - Invoice Verification - Product Catalogs

Materials Management (MM) - - Procurement Process --- (Step 1) Purchase Requisition (PReq) How is a PReq created?

1) Directly (Manual Input) - Internally (What, How Much, and When) 2) Indirectly (Triggered Automatically) - MRP - Production Order (PO) - Maintenance Order (MO) - Sales Order (SO)

Materials Management (MM) - - Procurement Process --- (Step 3) Purchase Order (PO) What are the three (3) structures (sections) to a PO?

1) Header 2) Item overview 3) Line item

Materials Management (MM) - - Procurement Process --- (Step 1) Purchase Requisition (PReq) What four (4) methods are used when selecting an appropriate Source of Supply (e.g. shopping for supplies)?

1) Internal Sourcing Requirements (e.g. we make it!) 2) Source List (e.g. our "go-to" vendors) 3) Outlined Agreement (e.g. existing long-term contracts or agreements) 4) Request for Quotation (RFQ) (e.g. soliciting bids form vendors)

Materials Management (MM) - - Procurement Process --- (Step 7) Invoice Verification Once an incoming shipment (Goods Receipt) is cleared (verified), what events will it trigger?

1) Material document created 2) Accounting document created ($) 3) Stock quantity updated (+) 4) Stock values are updated ($) 5) Purchase order updated (goods received.) 6) Printing slip/pallet label

Materials Management (MM) - - Procurement Process --- (Step 3) Purchase Order (PO) What is a PO?

A formal request to a vendor for a specific material or service under the stated conditions.

Materials Management (MM) - - Procurement Process --- (Step 1) Purchase Requisition (PReq) What is a PReq?

An internal document instructing the purchasing department to request a specific good or service for a specified time.

Materials Management (MM) - - Vendor Master Data - --- Views ----- Company Code Data What info can be found in the Company Code Data?

Company Code Data / Financial Accounting (FI) - Reconciliation account - Terms of payments - Bank account

Materials Management (MM) - - Vendor Master Data --- Functions What is the Function of Vendor Master Data?

Data that is needed to conduct business with a vendor and to execute transactions related to the purchasing process.

Materials Management (MM) - - Vendor Master Data - --- Views ----- Client Data What info can be found in the Client Data?

General Data (used by the whole organization) - Address - Vendor number - Preferred communication

Materials Management (MM) - What are the functions of a Purchasing Group?

People who actually make the purchases.

Materials Management (MM) - -Procurement Process --- (Step 6) Goods Receipt (GR) What is the first thing that must happen before we process an incoming shipment (Goods Receipt)?

The Delivery Document (Packing List) must be referenced against the actual purchase order to ensure contents, prices, and math is correct (verification).

Materials Management (MM) - - Procurement Process --- (Step 7) Invoice Verification What is the common method for Invoice Verification?

Three-way Match: 1) Purchase Order 2) Goods Receipt document 3) Invoice Receipt