SAP MM- Implementation Project

Company Profile
Tata Motors Ltd. is registered company as per Companies Act, 2013 in India. It has two
manufacturing unit. Car is manufacture in Gurgaon plant. Bus and Truck is manufactured in
Jamshedpur. One purchasing organization does the procurement of material, services and asset
for both plant and company code. Separate purchasing group is maintained for Gurgaon and
Jamshedpur plant. Some material is imported from outside India.
Tata Motors sales its products through Dealer ship in Indian domestic market. It also exports its
products outside India.

SAP MM Project Profile

Industry Sector-Automobile
Project Client-Tata Motors Ltd.
SAP System Environment- SAP ERP ECC 6.0 (EHP6)

SAP MM Business Blueprint

1. SAP Landscape
2. Organization Structure
3. Vendor Master Data
4. Material Master Data
5. FI Module Settings
6. CO Module Settings
7. MM Module Settings
8. Stock Update
9. Pricing Procedure for Procurement of Material
10. P2P Business Process
11. External Service Management
 12. Material Requirement Planning (MRP)
13. Stock Transfer
14. MM Master Data

1. SAP Landscape
  SAP Landscape is the SAP System environment where SAP project is implemented. SAP
BASIS Consultant prepares the landscape like Development Server, Quality Server and
Production Server. SAP system clients are created for different purposes.

 SAP Server- SAP Software Version (ECC 6.0 (EHP6)

 SAP Client- 310, 320, 330…210,220,230…100 (Particular SAP System)

Development Server Quality Server Production Server

SAP ECC 6.0 (EHP6) SAP ECC 6.0 (EHP6) SAP ECC 6.0 (EHP6)

210- Testing 100- Production

310- Sandbox Client Client
Client

320- Configuration 220- Quality

Client Client
330- Development 230- Training
Test Client Client

Transport Request
 Customizing Request (Client specific Data)

 Workbench Request (Cross Client Data)

 Data is transferred from one client to another client. This process is called

transportation and is conducted by SAP BASIS Consultant .

SCC4 (T. Code) - Check SAP System Clients and Client Role
Double click on Client – 800

Click on Client Role

Note:
Client roles
 Customizing Client
 Testing Client
 Production Client

SAP Project Clients

310- Sandbox Client

Provided to SAP Consultants to test and practice business scenarios. This client is used
for self-practice by SAP Consultants.

320- Configuration Client

Configuration is done as per business blueprint. Project is developed in this client. Base
configuration (Enterprise Structure) and final configuration is done in this client. This
client is also called as Golden Client.
330- Development Test Client
Testing is performed by SAP consultants who develop the project. Unit testing and
Integration testing is done as per business process master list (BPML).
 210- Testing Client
Testing Sheet is prepared and testing is conducted by core team member/module lead
(employee of company). Testing is the process of post transaction and check reports.
220- Quality Client
All business process is shown to company and User Accepting Test (UAT) is taken by SAP
Consultants from company. UAT is the process of taking approval of business process
from the company.
230- Training Client
End user training is conducted as per training document. Training document is prepared
as per role assignment and job profile of employees.
100- Production Client
Project is Go Live on production client. Actual business is run on this client. All
employee’s login into this client by unique user id and password and record day-to-day
business transactions.

2 Organization Structure
 Definition
 Assignment
 Check Organization Structure (T. Code EC01)
Definition of Organization Structure in SAP

1. Company
 Company is an organization unit in SAP System and is defined for group
reporting.
 Company is defined to prepare consolidated balance sheet and profit & Loss
account at Corporate Group level.
 Multiple company code can be assigned to a company.
2. Company Code
 Company code is an organization in SAP system. Company code is a separate
legal entity. To define company code is mandatory.
 Company code is assigned to Company, Controlling Area and Credit Control
Area
 Plant, Purchasing Organization, Sales Organization, Personnel Area is assigned
to Company Code.
 Accounting entries are posted to company code level and financial
statements are prepared.
1. Balance Sheet
 2. Profit & Loss Account
3. Business Area
 Business Area is defined for internal reporting. Separate balance sheet and
profit and loss can be prepared for each business area.
 Business Area is defined but not assigned to Company Code
 Accounting entries are posted to business area form company code.

4. Credit Control Area

 Credit control area is an organization unit in SAP system. It is used to set
credit limit of customers in case of credit sales.
 Company Code is assigned to credit control area
 Credit Control Area is assigned to Sales Area
 Credit Limit = Open sales Order+ Open Delivery (Goods Issue) + Open Billing

5. Controlling Area
 Controlling Area is defined to implement SAP CO module.
 Cost Element, Cost Center, Internal Order, Profit Center is created at
Controlling Area level.
 Product Costing is done at Controlling Area level.
 Company code is assigned to Controlling Area
 Controlling Area is Assigned to Operating Concern

6. Plant
 The plant is an operating area or branch within a company code form where
production activities done or services are provided.
 The plant is integrated in the organizational structure as follows:
 The plant is assigned to a single company code. A company code can have
several plants.
  Several storage locations in which material stocks are managed can belong to
a plant.
 A single business area is assigned to a plant and to a division.
 A plant can be assigned to several combinations of sales organization and
distribution channel.
 A plant can have several shipping points. A shipping point can be assigned to
several plants.

7. Division
 The division is one of the organizational units in Sales & Distribution and is
also required for business area account assignment for logistics transactions
in Financial Accounting.
 The business area for the material is determined via the plant and the
division defined in the material master record.
 Allocate a division to one or more sales organizations.
 Allocate a division to one or more distribution channels.
 Allocate a business area to a division from a plant. This way, business area
account assignment can be carried out for transactions in Materials
Management.
 A material is always assigned to one division only. You specify the division on
the first sales & distribution screen in the material master record.

8. Sales Organization
 An organizational unit in Logistics that structures the company according to
its sales requirements.
 A sales organization is responsible for selling materials and services.
 Legally, a sales organization is included in exactly one company code.
 You can assign one or more plants to one sales organization.

9. Distribution Channel
 You allocate a distribution channel to one or more sales organizations.
  You allocate one or more plants to a distribution channel.
 Within a distribution channel, you can define your own master data for
customers or materials as well as your own conditions and pricing.
 You can create master data for a representative distribution channel which is
then also used in other distribution channels. To do this, you have to
additionally create the allocation of the representative distribution channel to
the other distribution channels.
 For a distribution channel, you can determine your own sales document
types.
 You can determine sales offices for a distribution channel.
 All items of a sales document belong to a distribution channel. The entire
sales document is therefore entered for a distribution channel.
 The items of a delivery can belong to different distribution channels.
 All items of a billing document belong to a distribution channel.

10. Storage Location

 A storage location is the place where stock is physically kept within a plant.
 There may be one or more storage locations within a plant.
 A storage location has a description and at least one address.
 It is possible to store material data specific to a storage location.
 Stocks are managed only on a quantity basis and not on a value basis at
storage location level.
 Physical inventories are carried out at storage location level.
 A storage location can be assigned to a warehouse number in the Warehouse
Management System. You can assign more than one storage location to the
same warehouse number within a plant.
 Storage locations are always created for a plant.

11. Purchasing Organization

 From the Materials Management and Purchasing view, the purchasing
organization is responsible for all purchasing activities (including the
processing of requests for quotations and purchase orders, for example).
 A purchasing organization can be assigned to several company codes.
(= Corporate-group-wide purchasing).
 A purchasing organization can be assigned to one company code.
(= Company-specific purchasing).
 A purchasing organization can also exist without being assigned to a company
code.
 Since each plant must be assigned to a company code, the latter can be
determined via the plant at the time of each procurement transaction even if
the procuring purchasing organization has not been assigned to a company
code.
 A purchasing organization must be assigned to one or more plants.
(= Plant-specific purchasing).
 A purchasing organization can be linked to one or more other purchasing
organizations. Assign Purchasing Organization to Reference Purchasing
Organization.
 A purchasing organization can be divided into several purchasing groups that
are responsible for different operational areas.
 Each purchasing organization has its own info records and conditions for
pricing.
 Each purchasing organization has its own vendor master data.
 Each purchasing organization evaluates its own vendors using MM Vendor
Evaluation.
 Authorizations for processing purchasing transactions can be assigned to
each purchasing organization.
 All items of an external purchasing document, that is, request for quotation,
purchase order, contract, or scheduling agreement, belong to a purchasing
organization.
 12. Purchasing Groups
 A key for a buyer or group of buyers responsible for certain purchasing
activities.
 The purchasing group is Internally responsible for the procurement of a
material or a class of materials
 The principal channel for a company's dealings with its vendors

13. Sales Areas

 You can create a sales area for any combination of sales organization,
distribution channel and division.
 Customer Master Date is connected with Sales Areas

2. Vendor Master Data

A. Reconciliation Account (SAP FI Consultant)
1. Reconciliation Account is a GL Account and used to reconcile vendor
transactions. Manual posting is not possible.
2. Post accounting entries automatically by sub-ledger account i.e. Vendor
Account.
3. Different Reconciliation Account is defined for vendor account group
domestic, foreign, service and one-time vendors.
B. Vendor Account Group
Vendor Account Group is defined at client level to create vendor master data for
company code. Vendor account group provides default values to create vendor.
1. Field Settings (Suppress, Required Entry, Optional Entry and Display)
2. Number ranges (Maximum 10 Digit Vendor Account Number (Internal or
External)

ID Name No. Ranges Reconciliation Account

(GL Account) SAP FI
 1501 Domestic Vendors 31000-31999 160000

1502 Foreign Vendors 32000-32999 161000

1503 One-time Vendors 33000-33999 160010

1504 Service Vendors 34000-34999 160000

1505 Employee Vendors 35000-35999 160000

C. Vendor Partner Functions

 PO Vendor
 Goods Supplier
 Invoice Vendor
 Vendor Payment

D. Schema Group

 Schema Group for Purchasing Organization

 Shema Group for Vendor

E. Create Vendor Master Data

 XK01 – Create
 XK02 – Change
 XK03 – Display
 XK04 - Changes
 XK05 – Block
 XK06 - Flag for Deletion
 XK07 - Account Group Change
 XK99 - Mass Maintenance...

3. Material Master Data

A- Define Industry Sectors and Industry-Sector-Specific Field Selection
B- Assign Fields to Field Selection Groups
C- Define Attributes of Material Types
Std. Project Description
Material
Material
Type
Type
ROH M101 Row Material
HALB M102 Semi-finished Goods
FERT M103 Finished Goods
NLAG M104 Non-Stock Items
DIEN M105 Service
UNBW M106 Non-Valuated Material

D- Define Number Ranges for Each Material Type

 Maximum 18 Digit Material Master Data Number (External or Internal)

E- Define Material Groups

 MG101- Raw Material
 MG102- Semi-Finished Goods
 MG103- Finished Goods
 MG104- Non-Stock Items
 MG105- Service
 MG106- Non-Valuated Material

F- Create Material
 MM01- Create Material
 MM02- Change Material
  MM03- Display Material
 MM04- Display Changes
 MM06- Flag of Deletion
 MM17- Mass Maintenance
 MMAM- Change Material Type

4. FI Module Settings
A. OBBG- Assign Tax Calculation Procedure to Country India
B. OBY6- Company Code Global Data
 Fiscal Year Variant (V3)
 Posting Period Variant -1000

C. OB52- Posting Period Variant

D. OBH2- Copy Document Number Ranges
E. FBN1- Define Document Number Ranges
F. OB08- Maintain Exchange Rate

5. CO Module Settings
A. Define Controlling Area
B. Assign Company Code to Controlling Area
C. General Controlling
 Maintain Controlling Area
 Maintain Number Ranges for Controlling Documents
 Maintain Version

D. OKKS- Set Controlling Area

E. KS01- Create Cost Center
F. KA01- Create Cost Element
6. MM Module Settings
A. Define Plant Parameters
B. Assign Valuation Grouping Code (OMWD)
C. Open Posting Period for Material (Table Entry)
 SE16N- T. Code to check Table
 Table – MARV – Material Control Record
 &SAP_EDIT- T. Code to Change Standard Table

D. Open Posting Period for Material (T. Code)

 MMRV – Check Posting Period
 MMPV – Open and Close Posting Period

E. Define Document Number Ranges for Material and Physical

Inventory Documents (OMBT)

7. Stock Update
Stock Update Business Process

1) MB1C-Stock Upload
2) MM03-Display Material
3) MMBE-Stock Overview
4) MB51-Material Document list

8. Pricing Procedure for Procurement of Material

A. Maintain Condition table
B. Define Access Sequences
C. Define Conditions Types
 D. Define Calculation Schemas
E. Define Schema Group
 Schema Group for Vendor
 Schema Group for Purchasing Organization
 Assignment Schema Group to Purchasing Organization

F. Define Schema Determination

G. Assign Schema Group to Vendor Account (XK02)

9. P2P Business Process

Testing of Business Process - Procurement of Stock Material

1. MM03- Display Material

2. ME51N- Create Purchase Requisition
3. ME41- Create RFQ
4. ME47- Maintain Quotation
5. ME49- Price comparison
6. ME21N- Create PO
7. MIGO – Goods Receipt
8. MIRO – Invoice Receipt
9. ME23N- Check PO History
10. FBL1N- Check Vendor Account

10. External Service Management

A. Configuration of Service Master
 Activate Tax Indicator for India
 Define Service Category
 Define Number Ranges

B. Create Service Master (AC03)

C. FI Input GST Settings
D. Define Calculation Schema for Service
 Create Condition Table
  Maintain Access Sequence
 Maintain Condition Type
 Define Calculation Schema for Service

E. Create Condition Records for Service (ML51)

F. Procurement of Service
Testing of Business Process - Procurement of Services

 ME21N – Create Service PO

 ML81N- Create Service Entry Sheet
 MIRO- Service Invoice

11. Material Requirement Planning (MRP)

A. Configuration of MRP
 Define Plant Parameter
 Define MRP Groups
 Define MRP Controller
 Check MRP Type
 MRP Area

B. MM01- Create Material with MRP Views

C. MRP Run (MD02)
 Plan Order
 Purchase Requisition

12. Stock Transfer

 Business process of Stock Transfer
 MM01- Extend Material to another Plant
 MMBE – Check Stock Overview
 MB1B – Stock Transfer Posting
 MMBE- Check Stock Overview
 MB51- Check Material Document List

13. MM Master Data

 Vendor Master Data (XK01)
 Material Matera Data (MM01)
 Purchasing Info Record (ME11)
 Contract (ME31K)
 Source List (ME01)

The beginning of SAP MM Project….

“Where there is will, there is way.”
Wish your successful career in SAP.

Arjun Bhandari
SAP Lead Consultant
SAP Skills & Project Experience
==========================
SAP ERP ECC 6.0 (EHP1-EHP7) – SAP FI, CO, MM, SD
SAP S/4 HANA 1709/1810 – S/4 HANA Finance