Table of Contents

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Acknowledgments
19
Preface
21
1 Introduction
25
1.1 Overview of SAP ERP
25
1.2 Overview of Materials Management
29
1.3 SAP System Environment: Development, Quality, and Production Clients
30
1.3.1 Client Descriptions
33
1.3.2 Transport Requests
34
1.4 SAP Enhancement Packages
36
1.5 SAP Add-Ons and SAP Preconfigured Systems
38
1.5.1 SAP Add-Ons
38
1.5.2 SAP Preconfigured Systems (PCS)
38
1.6 Summary
39
2 The SAP Organizational Structure
41
2.1 Introduction to Organizational Structures
41
2.1.1 Client/Company
43
2.1.2 Company Code
43
2.1.3 Plant
44
2.1.4 Storage Location
44
2.1.5 Purchasing Organization
44
2.1.6 Purchasing Group
44
2.2 Business Scenarios and Organizational Structure
45
2.2.1 Scenario 1: Plant-Specific Purchasing
45
2.2.2 Scenario 2: Cross-Plant Purchasing
46
2.2.3 Scenario 3: Cross-Company Code/Corporate Group-Wide Purchasing
47
2.2.4 Scenario 4: Reference Purchasing Organization
48
2.2.5 Scenario 5: Standard Purchasing Organization
49
2.3 Setting Up Organizational Structures in an SAP System
49
2.3.1 Creating Company Codes
49
2.3.2 Defining Valuation Levels
51
2.3.3 Creating Plants
51
2.3.4 Assigning Plants to Company Codes
54
2.3.5 Creating Storage Locations for Plants
55
2.3.6 Creating Purchasing Organizations
57
2.3.7 Assigning Purchasing Organizations to Company Codes and Plants
57
2.3.8 Assigning Standard Purchasing Organizations to Plants
60
2.3.9 Assigning Purchasing Organizations to Reference Purchase Organizations
60
2.3.10 Creating Purchase Groups
61
2.4 Summary
62
3 Master Data
63
3.1 Vendor Master Records
64
3.1.1 Vendor Account Group
65
3.1.2 Field Selection
67
3.1.3 Number Interval
69
3.1.4 Vendor Status (One-Time Vendor)
71
3.1.5 Reconciliation Accounts for Vendor Master Records
72
3.1.6 Partner Schemas
73
3.2 Material Master Records
78
3.2.1 Main Attributes
82
3.2.2 Configuring a New Material Type
83
3.2.3 Defining a Number Range for a Material Type
86
3.2.4 Defining Field Selections
88
3.2.5 Defining Material Groups
89
3.3 Purchasing Info Records
90
3.3.1 Structure
91
3.3.2 Creating an Info Record
94
3.3.3 Configuration
95
3.4 Source List
96
3.4.1 Structure
96
3.4.2 Creating the Source List
97
3.4.3 Configuration
98
3.5 Quota Arrangement
98
3.5.1 Elements
99
3.5.2 Master Data and Configuration
103
3.6 Catalogs in SAP ERP
105
3.7 Summary
106
4 Procurement Processes
107
4.1 Item Category
108
4.2 Procure to Pay
110
4.2.1 Business Scenario
111
4.2.2 P2P Documents
111
4.3 Direct Material Procurement
117
4.3.1 Business Scenario
117
4.3.2 Process Steps
118
4.3.3 Configuration Steps
119
4.4 Indirect Material Procurement
119
4.4.1 Business Scenario
120
4.4.2 Process Steps
123
4.4.3 Configuration Steps
124
4.5 Blanket Purchase Orders for Consumable Materials
127
4.5.1 Business Scenario
128
4.5.2 Process Steps
129
4.5.3 Configuration Steps
130
4.6 Service Procurement
130
4.6.1 Business Scenario
131
4.6.2 Service Master Record
131
4.6.3 Documents and Price Conditions in Service Procurement
132
4.6.4 Process Steps
134
4.6.5 Configuration Steps
136
4.7 Consignment Procurement
141
4.7.1 Business Scenario
141
4.7.2 Process Steps
143
4.7.3 Configuration Steps
146
4.8 Subcontract Procurement
147
4.8.1 Business Scenario
147
4.8.2 Process Steps
150
4.8.3 Configuration Steps
154
4.8.4 Enhancements in Subcontracting Since SAP ERP 6.0 EHP4
156
4.8.5 New Transactions in Subcontracting
157
4.8.6 Two-Step Stock Transfer and Subcontracting Cockpit
158
4.8.7 Stock Transfer Direct to Subcontractor
161
4.9 Third-Party Procurement
163
4.9.1 Business Scenario
163
4.9.2 Process Steps
164
4.9.3 Configuration Steps
166
4.10 Outline Agreements
166
4.10.1 Contract Agreements
167
4.10.2 Invoices for Contracts
172
4.10.3 Scheduling Agreements
174
4.11 Stock Transfer
178
4.11.1 Business Scenario
178
4.11.2 One-Step Stock Transfer
179
4.11.3 Two-Step Stock Transfer
181
4.11.4 Stock Transport Orders
182
4.11.5 Stock Transfer from One Company Code Plant to Another Company Code Plant
183
4.12 Intercompany Purchases
184
4.12.1 Business Scenario
184
4.12.2 Stock Transport Order with Delivery via Shipping 
185
4.12.3 Stock Transport Order with Delivery and Billing Document/Invoice 
186
4.12.4 Configuration Steps
187
4.13 Summary
191
5 Inventory Management Processes
193
5.1 Movement Types
195
5.1.1 Business Scenario
195
5.1.2 Configuration Steps
196
5.2 Unit of Measurement for Goods Movement
199
5.3 Inbound and Outbound Processes
202
5.3.1 Inbound/Outbound Process Definitions
203
5.3.2 Goods Movement (Transaction MIGO)
204
5.3.3 Goods Movement with and without Reference
206
5.3.4 Inventory Management Configurations
207
5.4 Stock Types in Inventory Management
212
5.4.1 Standard Stock Types
213
5.4.2 Goods Receipt Blocked Stock
216
5.4.3 Special Stock Types
218
5.5 Physical Inventory Management Processes
220
5.5.1 Process Steps
221
5.5.2 Cycle Counting Method
223
5.6 Vendor Return Process
227
5.6.1 Return without Return Purchase Order
227
5.6.2 Return with Return Purchase Order
230
5.6.3 Return with Return Purchase Order and Outbound Delivery
232
5.7 Cancellation of Material Document
234
5.8 Summary
236
6 Invoice Verification
237
6.1 Basics of Invoice Verification
239
6.2 PO-Based Invoice Verification
242
6.3 GR-Based Invoice Verification
242
6.4 Invoices for Account-Assigned Purchase Orders
243
6.4.1 Account Postings
244
6.4.2 Process Steps
245
6.5 Invoices for Blanket Purchase Orders
246
6.6 Evaluated Receipt Settlements
247
6.6.1 Business Scenario
247
6.6.2 Prerequisites in Master Data
248
6.6.3 Process Steps
250
6.7 Invoicing Plans
252
6.7.1 Business Scenario
252
6.7.2 Periodic Invoicing Plan
252
6.7.3 Partial Invoicing Plan
253
6.7.4 Customization
254
6.7.5 Process Steps
258
6.8 Subsequent Debit/Credit
259
6.8.1 Business Scenario
260
6.8.2 Account Postings
260
6.8.3 Process Steps
262
6.9 Credit Memos and Reversals
262
6.9.1 Business Scenario
262
6.9.2 Process Steps
264
6.10 Invoice Verification in Background Processing
264
6.10.1 Business Scenario
265
6.10.2 Process Steps
265
6.11 Invoice Reductions
267
6.11.1 Business Scenario
267
6.11.2 Account Posting
269
6.11.3 Process Steps
269
6.11.4 Customization Steps for Invoices with Reduction
270
6.12 Invoices with Variances
272
6.12.1 Business Scenario
272
6.12.2 Account Posting
272
6.12.3 Process Steps
274
6.12.4 Configuration Steps
275
6.13 Taxes in Invoice Verification
276
6.13.1 Entering Tax Data in an Invoice
277
6.13.2 Configuration Steps
278
6.14 Discounts in Invoice Verification
278
6.14.1 Account Postings
279
6.14.2 Configuration of Gross/Net Posting
281
6.14.3 Configuration of Payment Terms
281
6.15 Invoice Blocking
282
6.15.1 Business Scenario
282
6.15.2 Quantity Variance
283
6.15.3 Price Variance
284
6.15.4 Stochastic Blocking
286
6.15.5 Manual Blocking
288
6.15.6 Tolerances
289
6.15.7 Releasing Blocked Invoices
291
6.16 GR/IR Account Maintenance
293
6.16.1 Account Posting
294
6.16.2 Process Steps
294
6.17 Duplicate Invoice Check
295
6.18 Invoices for POs with Down Payments
296
6.18.1 Business Scenario
296
6.18.2 Process Steps
297
6.18.3 Activate Down Payment in Purchasing
304
6.19 Invoices for POs with Retention Money
305
6.19.1 Business Scenario
305
6.19.2 Process Steps
307
6.19.3 Customizing Steps
309
6.20 Summary
312
7 Inventory Valuation
313
7.1 Financial Accounting and Controlling Overview
313
7.1.1 Financial Accounting
313
7.1.2 Management Accounting
315
7.2 Valuation Area
316
7.3 Valuation Methods: Moving Average Price and Standard Price
318
7.3.1 Moving Average Price “V”
319
7.3.2 Standard Price “S”
320
7.3.3 Configuration Steps
321
7.3.4 Process Steps
322
7.4 Material Price Changes
323
7.4.1 Business Scenario
323
7.4.2 Process Steps
328
7.4.3 Configuration Steps for Price Changes in the Previous Period/Year
328
7.5 Split Valuation
329
7.5.1 Business Scenario
329
7.5.2 Configuration Steps
331
7.5.3 Process Steps
335
7.6 Summary
338
8 Key Configurations in Materials Management in SAP
339
8.1 Release Strategy
340
8.1.1 Business Scenario
340
8.1.2 Basic Concepts of Release Strategy
341
8.1.3 Configuration Steps for Release Procedure without Classification
343
8.1.4 Configuration Steps for the Release Procedure with Classification
348
8.1.5 Process Steps
355
8.2 Pricing Procedure
357
8.2.1 Business Scenario
357
8.2.2 Process Steps
358
8.2.3 Configuration Steps
359
8.3 Automatic Account Determination
368
8.3.1 Business Scenario
368
8.3.2 Configuration with the Automatic Account Determination Wizard
370
8.3.3 Configuration without the Automatic Account Determination Wizard
370
8.3.4 Process Steps
376
8.4 Document Type
379
8.4.1 Business Scenario
380
8.4.2 Configuration Steps
381
8.4.3 Process Steps
383
8.5 Version Management
383
8.5.1 Business Scenario
384
8.5.2 Configuration Steps
385
8.5.3 Process Steps
389
8.6 Message Determination
389
8.6.1 Business Scenario
390
8.6.2 How Message Determination Works
391
8.6.3 Configuration Steps
392
8.6.4 Process Steps
397
8.7 Serial Numbers in Purchasing
398
8.7.1 Configuration Steps
400
8.7.2 Process Steps
403
8.8 Public Templates in Purchase Orders and Requisitions
405
8.8.1 Configuration Steps
406
8.8.2 Process Steps
406
8.9 Blocking and Unblocking Purchase Orders
408
8.9.1 Customizing Steps
408
8.9.2 Process Step
409
8.10 Summary
410
9 Material Classification
411
9.1 Introduction to Material Classification
411
9.2 Key Terms of the Classification System
414
9.3 Configuration Steps
415
9.3.1 Step 1: Define Characteristics
416
9.3.2 Step 2: Define Class
418
9.3.3 Step 3: Assign Objects to Classes
419
9.4 Summary
420
10 Batch Management
421
10.1 Master Data in Batch Management
423
10.1.1 Activate Batch Management in the Material Master
423
10.1.2 Creating and Managing the Batch Master Record
425
10.1.3 Batch Classification
428
10.2 Process Steps
428
10.2.1 Define Characteristics
429
10.2.2 Define Class
431
10.2.3 Create Material Master
432
10.2.4 Create Batch Master
433
10.2.5 Post Goods Receipt
435
10.2.6 Stock Overview
436
10.2.7 Batch Information Cockpit
437
10.3 Configuration Steps
438
10.3.1 Define the Batch Level
439
10.3.2 Batch Number Assignment
441
10.3.3 Creation of New Batches
443
10.3.4 Batch Determination
444
10.4 Summary
451
11 Material Requirements Planning
453
11.1 Introduction to MRP
454
11.2 Planning Procedures in MRP
456
11.3 Prerequisites
457
11.3.1 Configuration Settings
457
11.3.2 MRP Groups
460
11.3.3 MRP Data in the Material Master
462
11.3.4 MRP Profile
463
11.4 Planning Levels (MRP Areas)
465
11.5 Planning Procedures in Consumption-Based Planning
467
11.5.1 MRP Type
467
11.5.2 Lot Size Calculation
469
11.5.3 Planning Procedure Type 1: Reorder Point Planning
471
11.5.4 Planning Procedure Type 2: Forecast-Based Planning
475
11.5.5 Forecast Models
477
11.5.6 Planning Procedure Type 3: Time-Phased Planning
480
11.6 Planning Run
483
11.6.1 Planning File
483
11.6.2 Planning Horizon
485
11.6.3 Control Parameters for the Planning Run
485
11.6.4 Planning Execution
488
11.7 Planning Evaluations
488
11.7.1 MRP List and Stock/Requirements List
489
11.7.2 Navigation Profile
491
11.7.3 Exception Messages
492
11.8 Summary
493
12 Enhancements in Materials Management
495
12.1 System Architecture
495
12.2 Introduction to Development Objects
497
12.3 Reports
498
12.4 Interface
503
12.4.1 Technical Terminology—Synchronous and Asynchronous Communications
505
12.4.2 Classical SAP Technologies (ABAP)
506
12.4.3 Example
512
12.5 Conversion
512
12.6 Enhancements
514
12.6.1 BAdIs
515
12.6.2 Example
516
12.7 Forms
516
12.8 Workflow
518
12.9 Summary
519
13 Conclusion
521
Appendices
525
A Important Transaction Codes
527
A.1 Material Master and Service Master
527
A.2 Vendor Master
527
A.3 Other Master Records
528
A.4 Inventory Management
528
A.5 Materials Requirement Planning (MRP)
529
A.6 Physical Inventory
530
A.7 Purchasing and Invoicing Transactions
530
A.8 ALE/IDoc Transactions
532
B Important Tables
535
B.1 Material Master Tables
535
B.2 Other Important Tables
535
C BAdIs
537
D The Author
541
Index
543