EGN 5620 Enterprise Sys MM Master Data

Material Management (MM) Master Data & Records
EGN 5620
Enterprise Systems Configuration Spring, 2012
MM Master Data & Records

Theories & Concepts
Enterprise resource types
Human resources Material Machine Tools Equipment Facility Utilities Human resource Capital
Material data
Definition
Physical objects to buy, transform into, sell, maintain other resources, or use in support for business activities. Trading goods Raw materials Semi-finished products (WIPs) Finished products Consumables (e.g., stationery, production tools) Spare parts (for maintenance)
Generic classification(material types) :
Material data
Material attributes, grouped by business functions:

Application/industry (sector) Engineering (i.e., material properties) Purchase Production Inventory (MRP) Warehousing Sales Accounting
Material Numbering Scheme

Each inventory item must has a unique number. Nave approach: automatic assignment of material numbers is the best (simplest) choice for simplicity of maintenance. Intelligent scheme, considering:
The length of a material number Numbering scheme:
Option 1: use sequential numbers Option 2: use a template to define the meaning of material numbers, according to: Material type Material property type Material shape and/or Dimensions
MM Master Data & Records

SAP MM Master Data and Records
MM Master Data (review)
Material master data are a part of master data, which are relatively fixed
The organizational structures must be completed before configuring master data
January 2008
SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.
Business Process Integration
January 2008
Master Data (review)

Master data include business rules and supportive information which are applied while generating master data records Master data are maintained by individual data owners in various organizational units inside the SAP client
January 2008
10
Master Data records (review)

Each master data record is unique Master data records are usually created or converted (from a legacy system) at the beginning of SAP deployment Material master records are maintained by various organization units such as sales, purchasing, production, & accounting, etc.
January 2008
11
Material Master Data Modeling
Capture material attributes that sufficiently differentiate their:

Application/Industry Sector (Material) Type Maintenance Features Organizational Levels Various Business Views
January 2008
12
Material Master Industry Sector

Industry sector is used to group records It determines industry-specific data that will appear on the master record Industry sector examples:
Chemical industry (C ), Mechanical engineering (M), Pharmaceuticals (P), Plant Engineering/Construction (A), Retail, and so on.
January 2008
13
Material Master Material Type

It is used to categorize materials It defines material attributes of:

Valuation Procurement, and Price control, etc.
It controls transaction (types) allowed for the material It controls the screen (view) sequence, number assignment, field selection, and account determination
January 2008
14
Material Master Material Type
Material type information determines:

What views are maintained Whether internal or external procurement is allowed whether changes in material quantity need to be updated Which general ledger accounts need to be updated
January 2008
15
Material Master Material Types
SAP standard material types (used in all industries):

ROH (Raw Materials)
Purchased externally only No sales view
HAWA (Trading Goods)

Always purchased externally Sold without any change to the material No manufacturing views exist
FERT (Finished Products)

Are produced internally Normally no purchasing views exist
January 2008 SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 16
Material Master More Material Types
HIBE (Operating Supplies) VERP (Customer returnable packaging) LEER (Empty containers) KMAT (Configurable material) ERSA (Spare parts) DIEN (Services) NLAG (Non-stock, non-valuated material) UNBW (Non-valuated, stocked material) FHMI (Production resources/tools) WETT (Competitive products) PROD (Product group) IBAU (Maintenance assembly, plant maintenance)
January 2008
17
Material Master Data maintenance features
Default Reference Material Profile

It speeds data entry by using the most frequently used field values (plant, purchasing organization, etc.)
It speeds data entry by copying data from existing material master It speeds data entry by copying standard data created in a profile into a selected view Materials Requirements Planning (MRP) It speeds the creation of multiple storage locations
Collective entry of storage location data
January 2008
18
Material Master Organization Levels
Material master data can be related to all organizational levels General information of material master records (such as description, number, base unit of measure) has to be related to the highest level of organization (i.e., the client) Other material master records are tailored at the plant or lower levels
January 2008
19
Material Master at Various Organization Levels
Data are visible

At client level:
Description Units of measure Material number Engineering data
At plant level:
Planning data Manufacturing data Purchasing data
At storage Location level:

Stock quantities
Material Master Primary Views
Basic data 1 Sales: sales organization data 1 Sales: sales organization data 2 Sales: general/plant data Sales: texts Purchasing Forecasting
Barrel Pen
January 2008
21
Material Master More Primary Views
MRP: 1 MRP: 2 MRP: 3 Work scheduling General Plant Data/Storage Accounting 1 Costing 1
January 2008
22
Material Master Basic Data 1 View
General data
Basic Unit of Measure
Unit of measure in which stocks of the material are managed
Material Group
Used to group together several materials or services with the same attributes Used to determine the sales area and the business area for a material, product, or service
Division (areas)
January 2008
23
Material Master Basic Data 1 View
Dimensions/EANs
Gross weight
Net weight
Used to check storage capacity in warehouse Weight excluding packaging and extras this is needed for sales and distribution Unit of Measure for weight The space that the material occupies per unit of volume
Weight Unit
Volume
January 2008
24
Material Master sales view 1: sales organization
General Data
Base Unit of Measure

Division
The Base Unit of Measure is the unit of measure in which stocks are managed within your company. You may enter the Division which your product is in for sales (defaults if entered in the Basic data screen). A key thats used to group several materials or services for analysis/reporting as well as search by match code. The unit of measure in which the material is sold, if left blank then uses the base unit of measure.
Material Group
Sales Unit
January 2008
25

Delivering Plant
Plant from which the material is available for sale.
Cash discount
Indicator used for materials, which allow for a cash discount.
Conditions
Pricing procedure for the material
Tax Data
Tax classification material
The indicator with which the system determines output tax for the material when processing sales and distribution-specific documents
Quantity Stipulations
Minimum Order Quantity
Minimum quantity a customer may order. Minimum quantity that may be delivered to a customer The delivery unit consists of a number and a unit of measure. In the case of a delivery unit of 30 pieces, 30, 60, 90, and so on pieces can be delivered, but not, however, 100 pieces.
Minimum Delivery Quantity
Delivery Unit
January 2008
27
Grouping Terms
Material Statistics Group

Material Pricing Group Volume Rebate Group
Determine which data the system updates in the logistics information system A way of grouping materials to which you want to apply the same conditions Group definition used for rebate settlement.
General Item Category Group
Materials grouping that helps the system to determine item categories during sales document processing.
Material Master
sales view 2: sales organization
Grouping Terms (continued)

Item Category Group
A grouping of materials that the system uses to determine item categories during the processing of sales documents. Commission group to which the material is assigned.
Commission Group
January 2008
29
Material Master sales view: general/plant view
General Data
Base unit
Gross weight Net weight
The unit of measure in which items are managed in the company
Used to check storage capacity in warehouse

Weight excluding packaging and extras this is needed for sales and distribution
Availability check
Option to do an availability check for orders and MRP

January 2008
30
Shipping Data (times in days)

Transportation Group
Defines materials that have the same transportation requirements. For example, bulk stock materials Defines materials that have the same loading requirements, such as forklift truck, or crane.
Loading Group
January 2008
31
Packaging Material Data
Material group Pack Materials
Materials that require similar packaging materials
General Plant Parameters

Negative stock Profit Center
It indicates if negative stocks of the material are allowed at the plant It identifies the profit center in the current controlling area
January 2008
32
Material Master - sales view: sales texts
Sales Texts
Sales texts are information to be exchanged throughout the logistics chain In sales and distribution, this exchange of information is supported by texts in master records and documents The user may define as many text types as required for master records and documents such as:
sales texts, shipping texts, internal notes, & supplement texts, etc.)
January 2008
33
Material Master Purchasing View
General Data
Order Unit
Purchasing Group
The unit of measure in which a company purchases the product Key for a buyer or a group of buyers, who is/are responsible for certain purchasing activities. It defines the reminder days and tolerance limits for purchasing
Purchasing Values
Purchasing Value Key
January 2008
34
Material Master Forecasting view
Number of Periods Required

Historical Periods
Forecast Periods

The number of historical values the system uses for the forecast Number of period splits for which a forecast should be created
Forecast Values
Consumption Values
The numeric quantity for future periods The sum of planned and unplanned consumption
January 2008
35
Material Master MRP view 1
General Data
Purchasing Group
MRP Procedures
MRP Type
The buyer(s) who are responsible for certain purchasing activities It determines whether and how the material is planned If stock falls below this point, the system is flagged to create a planned order
Reorder Point
MRP Controller
The person(s) responsible for the material planning

Lot Size Data

Lot Size
Minimum Lot Size
The lot sizing procedure to calculate the quantity to be produced or procured The smallest order quantity The quantity to be ordered
Fixed Lot Size
January 2008
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Scheduling
Planned Delivery Time
Scheduling Margin Key
Number of calendar days needed to obtain the material

Used to determine the floats required for scheduling It specifies the quantity of safety stock whose purpose is to satisfy unexpectedly high demand in the coverage period
Net Requirement Calculation

Safety Stock
January 2008
38
Availability Check
It specifies whether and how the system checks availability and generates requirements for materials planning
January 2008
39
Material Master work scheduling view
Production scheduler
It specifies the production scheduler

It specifies production scheduler profile
Production Scheduler Profile
January 2008
40
Material Master plant data/storage view 1
Container Requirements It defines the regulations that govern which type of container the material must be stored and shipped in Storage Conditions It defines the conditions on how a material must be stored or warehoused Shelf Life Data
General Data
Minimum remaining shelf life
Minimum time the material must keep upon goods receipt for the goods receipt to be accepted by the system Total Shelf Life Period of time the material will keep in total, from the date of production or receipt to the shelf life expiration date SAP AG - University Alliances and
January 2008 The Rushmore Group, LLC 2008. All rights reserved. 41
Material Master Accounting view 1
Current Valuation
Valuation Class It allows the stock values of materials of the same material type to be posted to different G/L accounts. It allows the stock values of materials of different material types to be posted to the same G/L account. It determines together with other factors the G/L accounts updated for a valuation-relevant transaction (Material Movements) Price Unit Number of units to which the price refers
January 2008
42
Material Master Accounting view 1
Current Valuation
Price Control Indicator The price control used to valuate the stock of a material (e.g., Standard or Moving Average Price) Standard Price The valuation of material stocks at standard prices means that all goods movements are valuated at the same price over an extended period Moving Average Price The system calculates the moving average price automatically by dividing the material value in the stock account by the total of all storage location stocks in the plant concerned
Material Master costing view
General Data
Overhead Group Future
Standard Cost Estimate

Current
It assigns same overhead rate to group
Planned cost of material in future

Current standard cost of material
Previous
Historical standard cost of material
January 2008
44
Material Master Costing view
Planned Prices
Valuation Data
Valuation Class
Future price of material

Class type for G/L posting
January 2008
45
PEN, Inc. MM Master Data and Records
Trading Goods
Material Type Materials HAWA BPENxxx Views required Basic data 1 Purchasing MRP 1, 2, 3 General Plant data/Storage 1 Accounting 1 Account Category 0005 Valuation class 3100
(Trading Goods) CPENxxx PPENxxx BOXxxx
Sales: Sales Org. Dta 1 Sales: Sales Org. Data 2 Sales: General/Plant data
Operating Suppliers
Material Type Materials HIBE
(Operating supplies)
Views required Basic data 1 Purchasing MRP 1, 2, 3 General Plant data/Storage 1 Accounting 1
Account Valuation Category class 0002 3030/3031
TAPExxx TISSUExxx PAPERxxx FORMSxxx
Raw Materials
Material Type Materials ROH Barrelxxx Capxxx Bandxxx Cartridgexxx Crownxxx Standxxx Giftboxxxx Views Required Basic data 1 Purchasing MRP 1, 2, 3 General Plant Data/Storage 1 Accounting 1 Costing 1 Account Valuation Category class 0001
3000/3001/ 3002/3003
(Raw Material) Clipxxx
Finished Products
Material Type Materials Views created Account Valuation Category class
FERT
(Finished Products)
EPENxxx
ESETxxx
Basic data 1
Sales: Sales Org. Data 1 Sales: Sales Org. Data 2 Sales: General/Plant data MRP 1, 2, 3 Working Scheduling General Plant Data/Storage Accounting 1 Costing 1
0009
7920
Exercises:
114. Create sales organization 115. Assign sales organization to company code 117. Assign distribution channel to sales organization 120. Assign division to sales organization 122. Set up sales areas 125. Assign plant to sales organization and distribution channel 126. Assign shipping point to plant 127. Create sales views for trading goods 204. Create raw materials inventory account 205. Create finished goods inventory account 206. Create raw materials expense account 207. Create finished goods expense account
Exercises:
247. Define storage location for raw materials 248. Create production scheduling profile 249. Create production scheduler 250. Control Parameters for MRP 251. Assign availability check to order type 252. Define scheduling parameters for operations 253. Define control parameters for order type 254. Create confirmation parameters 255.Define valuation for goods received 256. Create material master for raw materials 257. Create material master for finished products

EGN 5620 Enterprise Sys MM Master Data

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Material Management (MM) Master Data & Records

Enterprise Systems Configuration Spring, 2012

MM Master Data & Records

Enterprise resource types

Generic classification(material types) :

Material attributes, grouped by business functions:

Material Numbering Scheme

The length of a material number Numbering scheme:

MM Master Data & Records

MM Master Data (review)

The organizational structures must be completed before configuring master data

Business Process Integration

Master Data (review)

Master Data records (review)

Material Master Data Modeling

Capture material attributes that sufficiently differentiate their:

Material Master Industry Sector

Material Master Material Type

It is used to categorize materials It defines material attributes of:

Material Master Material Type

Material type information determines:

Material Master Material Types

SAP standard material types (used in all industries):

HAWA (Trading Goods)

FERT (Finished Products)

Material Master More Material Types

Material Master Data maintenance features

Default Reference Material Profile

Collective entry of storage location data

Material Master Organization Levels

Material Master at Various Organization Levels

Data are visible

At storage Location level:

Material Master Primary Views

Material Master More Primary Views

Material Master Basic Data 1 View

Basic Unit of Measure

Unit of measure in which stocks of the material are managed

Material Master Basic Data 1 View

Material Master sales view 1: sales organization

Base Unit of Measure

Material Master sales view 1: sales organization

Material Master sales view 1: sales organization

Minimum Order Quantity

Minimum Delivery Quantity

Material Master sales view 2: sales organization

Material Statistics Group

General Item Category Group

sales view 2: sales organization

Grouping Terms (continued)

Material Master sales view: general/plant view

Used to check storage capacity in warehouse

Option to do an availability check for orders and MRP

Material Master sales view: general/plant view

Shipping Data (times in days)

Material Master sales view: general/plant view

Packaging Material Data

Material group Pack Materials

Materials that require similar packaging materials

General Plant Parameters