Materials Management (MM)

The grouping of management functions supporting the complete cycle of material flow,
from the purchase and internal control of production materials to the planning and
control of work in process to the warehousing, shipping, and d
distribution
istribution of the finished
product.

Introduction to ERP – SAP R/3 system

 Working with System.

 IMG (Implementation Guide)
 Project implementation.
 MM overview.

1. Material Master Organizational Levels

 Material type and Industrial Sector.

 Number assignment for material.
 Valuation classes.
 Views, editing material master.

2. Service Master

 Maintaining the service master

 Vendor master
 Organization levels
 Account group
 Partner functions / Roles views
 Editing vendor master

3. Materials planning and forecasting.

 MRP rates in material, Master MRP profiles.

 Planning methods. Net requirements, calculations, scheduling procedures, Lot
size procedures.
 Processing planning run, planning file, Planning level, storage location MRP.
 Fixing and rescheduling check, planning hor
horizon.
 MRP list and current requirements / stock list, eelements
lements of MRP list and current
requirement / stock list, exception message.
4. Purchasing generals.

 Item category.
 Account assignment category, procurement for stock / consumption,
procurement for exte
external, account assignment.
 Release procedure.
 Fundamental structure of purchasing documents

5. Purchase requisitions.

 MRP sources.
 General structure.
 Overall release of purchase requisitions.

6. Request for Quotation.

 Business process integration.

 Fundamental structure.
 Price compassion list.

7. Purchase order.

 Fundamental structure, sources / references.

 Purchase order history.

8. Lean process for procurement of consumables and services

services.

 Blanket purchase order.

 Invoicing plan.
 Outline agreement.
 Quality / value contracts, scheduling agreements
 Release order history.
 Automatic generation of delivery schedule lines / automatic delivery
schedule update.
 Aggregation of schedule lines.

9. Supply source determination and optimized purchasing

 Purchasing information recor

record, source list, quota arrangements.
 Assigning and editing purchase requisition, automatic purchase order generation
 Optimization of the procurement process.
 Pricing and message printing.
 Output medium.
10. Reports.

 Purchase order and contract monitoring, pur

purchase reports.
 Logistics Information Systems (LIST)

11. Inventor Management Goods Movements, Stocks.

 Movement types.
 Goods receipts (referencing purchase orders, referencing production orders /
reservations, other GR)
 Inventory management levels, stock types, special stocks, quality inspection.
 lanned / Unplanned movements, reservations.
 Goods issue.
 Transfer postings and stock transfers.
 Reverse postings (Reverse posting movement, document reversals), return
deliveries.
 Integration, effects of inventory management postings, quality / value, control
data (Eg. Field control, Inspection indicator, Tolerances)
 Message determination.
 Analysis / Inventory controlling.

12. Special processing forms.

 Negative stocks.
 Stocks under split valuation.
 Subcontracting (Purchase
rchase and Inventory management)
 Vendor consignment, zero value stocks, non valued GR,
 Quantity / value.

13. Simplification of procurement stock.

 Consignment (Info record for consignment)

 Automatic generation of purchase order for goods receipt.
 One step procedure
ocedure for stock transport orders.

14. Physical Inventory.

 Physical inventory methods.

 Physical inventory procedures.
15. Invoice verification.

 Procedure and forms of invoice verification.

 Referencing on purchase order or goods receipt / delivery note.
 Purchase
se orders with account assignment, valuated / non
non-valuated
valuated goods
receipt.
 Gross and net posting, Cash discount.
 Planned and unplanned delivery cost.
 Taxes.
 Variances blocking reasons.
 Preliminary posting.
 Posting transactions, value, and price control.

16. Release procedure.

 Blocking reasons.
 Individual and collective release.
 Automatic release.

17. Special processing forms.

 Credit memos and cancellations.

 Subsequent debits / credits.
 Invoices in foreign currency.
 Invoices in consignment stock.
 Invoices without reference. (Posting to material or G/L account)
 Evaluated receipt settlement (ERS)
 GR/IR account maintenance.
 Posting transactions, value, and price control.

18. Enhancements in Invoice verification Account determination.

 Account determination controlling, needed dates and customizing settings

valuation grouping. Account grouping, General reconciliation account / value
string, posting keys.
 Account determination for stock movements and invoice verification.
 Automatic postings.

19. Valuation in the Fiscal year.

 Price control and effects for valuation / account determination.

 Valuation of goods receipt and invoice verification.
 Valuation levels, quality / value, split valuation.
  Zero – value stocks, Non – valuated gross receipt.
 Revaluation.
 Integration, posting transactions / postings keys, field control, control /
reconciliation account, cost element.

20. Classification / Batch management.

 Basics in classification.
 Batch management.

21. Integration.

 Cross company procurement.

 MM processes with modules FI, SD, PP.
 Basis
sis in integration (Project experience or participation in case study)