Material Management (MM) Master Data & Records EGN 5620 Enterprise Systems Configuration Fall, 2015 MM Master Data & Records SAP MM Master Data and Records Material Data Definition Generic classification(material types) : ◦ Physical objects to buy, transform into (e.g. manufacture), 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) Material Data Typical material attributes, by business functions: • • • • • • • • • Industry sector Basic Purchase Sales Work scheduling (Production) MRP (Inventory) Warehousing Accounting Costing MM Master Data January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 5 MM Master Data (review) Material master data are part of SAP master data, which are relatively fixed. Organizational structure must be completed before creating the master data January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 6 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 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 7 Material Master Data Modeling Material attributes are used to sufficiently differentiate their: • • • • Industry sector Material type organizational levels various business views January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 8 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 Eng./Construction (A), Retail, and so on. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 9 Material Master – Material Type It defines material attributes of: ◦ Valuation ◦ Price control, ◦ etc. It controls transaction types allowed for the material It controls the field selection, and account determination. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 10 Material Master – Material Type (continued) Material type information is used to determines: • What views are maintained • Whether internal or external procurement is allowed • Whether changes in material quantity need to be updated January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 11 Material Master – Material Types (-continued) 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 ◦ HALB (Semi-Finished Products) Are produced internally 2008 views exist Normally no purchasing and January sales 12 Material Master – More Material Types (-continued) 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 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 13 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 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 14 Material Master – at Various Organization Levels (-continued) 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 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 15 Material Master – Primary Views Basic data 1 Sales: sales organization data 1 (for trading and finished goods) Sales: sales organization data 2 (for trading and finished goods) Sales: general/plant data (for trading and finished goods) Purchasing (for trading and raw materials) Forecasting MRP: 1 MRP: 2 MRP: 3 Work scheduling (for finished and semi-finished goods) General Plant Data/Storage Accounting 1 Costing 1 (for raw, semi-finished, and finished goods) January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 16 Material Master – Basic Data 1 View General data Dimensions/EANs ◦ 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 ◦ Division Used to determine the sales area and the business area for a material, product, or service ◦ Gross weight Used to check storage capacity in warehouse ◦ Net weight Weight excluding packaging and extras – this is needed for sales and distribution ◦ Weight Unit Unit of Measure for weight ◦ Volume © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The space that the material occupies per unit of volume January 2008 rights reserved. 17 Material Master – Sales View 1: Sales Organization General Data ◦ Base Unit of Measure The Base Unit of Measure is the unit of measure in which stocks are managed within your company. ◦ Division You may enter the Division which your product is in for sales (defaults if entered in the Basic data screen). ◦ Material Group A key that’s used to group several materials or services for analysis/reporting as well as search by match code. ◦ Sales Unit The unit of measure in which the material is sold, if left blank then uses the base unit of measure. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 18 Material Master – Sales View 1: Sales Organization ◦ 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 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 19 Material Master – Sales View 2: Sales Organization Grouping Terms ◦ Material Statistics Group Determine which data the system updates in the logistics information system ◦ Material Pricing Group A way of grouping materials to which you want to apply the same conditions ◦ Volume Rebate Group Group definition used for rebate settlement. ◦ General Item Category Group Materials grouping that helps the system to determine item categories during sales document processing. ◦ Item Category Group A grouping of materials that the system uses to determine item categories during the processing of sales documents. ◦ Commission Group Commission group to which the material is- University assigned. © SAP AG Alliances and January 2008 The Rushmore Group, LLC 2008. All rights reserved. 20 Material Master – Sales View: General/Plant View General Data ◦ Base unit The unit of measure in which items are managed in the company ◦ Gross weight Used to check storage capacity in warehouse ◦ Net weight 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 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 21 Material Master – Sales View: General/Plant View Shipping Data (times in days) ◦ Transportation Group Defines materials that have the same transportation requirements. For example, bulk stock materials ◦ Loading Group Defines materials that have the same loading requirements, such as forklift truck, or crane. Packaging Material Data ◦ Material group Pack Materials Materials that require similar packaging materials General Plant Parameters ◦ Negative stock It indicates if negative stocks of the material are allowed at the plant ◦ Profit Center It identifies the profit center in the current controlling area © SAP AG - University Alliances and January 2008 The Rushmore Group, LLC 2008. All rights reserved. 22 Material Master – Purchasing View General Data • Order Unit • The unit of measure in which a company purchases the product • Purchasing Group • Key for a buyer or a group of buyers, who is/are responsible for certain purchasing activities. Purchasing Values • Purchasing Value Key • It defines the reminder days and tolerance limits for purchasing January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 23 Material Master – Forecasting View Number of Periods Required ◦ Historical Periods The number of historical values the system uses for the forecast ◦ Forecast Periods Number of period splits for which a forecast should be created Forecast Values ◦ The numeric quantity for future periods Consumption Values ◦ The sum of planned and unplanned consumption 24 Material Master – MRP View 1 General Data ◦ Purchasing Group The buyer(s) who are responsible for certain purchasing activities MRP Procedures ◦ MRP Type It determines whether and how the material is planned ◦ Reorder Point If stock falls below this point, the system is flagged to create a planned order ◦ MRP Controller The person(s) responsible for the material planning Lot Size Data ◦ Lot Size The lot sizing procedure to calculate the quantity to be produced or procured ◦ Minimum Lot Size The smallest order quantity ◦ Fixed Lot Size © SAP AG - University Alliances and The quantity to be ordered January 2008 The Rushmore Group, LLC 2008. All rights reserved. 25 Material Master – MRP View 1 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 26 Material Master – MRP View 2 Scheduling ◦ Planned Delivery Time Number of calendar days needed to obtain the material ◦ Scheduling Margin Key Used to determine the floats required for scheduling Net Requirement Calculation ◦ Safety Stock It specifies the quantity of safety stock whose purpose is to satisfy unexpectedly high demand in the coverage period January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 27 Material Master – MRP View 3 Availability Check ◦ It specifies whether and how the system checks availability and generates requirements for materials planning January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 28 Material Master – Work Scheduling View Only for finished products and semi-finished materials Production scheduler Production Scheduler Profile ◦ It specifies the production scheduler ◦ It specifies production scheduler profile January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 29 Material Master – Plant Data/Storage View 1 General Data ◦ 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 ◦ 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. 30 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 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 31 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 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 32 Material Master – Costing View General Data ◦ Overhead Group It assigns same overhead rate to group Standard Cost Estimate ◦ Future Planned cost of material in future ◦ Current Current standard cost of material ◦ Previous Historical standard cost of material Planned Prices Valuation Data ◦ Future price of material ◦ Valuation Class Class type for G/L posting January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 33 GBI MM Master Data and Records Trading Goods Material Type Materials Views required Valuation class HAWA EPAD10## Basic data 1 3100 (Trading Goods) KPAD10## Purchasing OHMT10## MRP 1, 2, 3 RHMT10## General Plant data/Storage 1 RKIT10## Accounting 1 Sales: Sales Org. Dta 1 Sales: Sales Org. Data 2 Sales: General/Plant data Raw Materials Material Type Materials Views Required Valuation class ROH Bolt10## Basic data 1 3000 (Raw Material) BRKT10## Purchasing CHAN10## MRP 1, 2, 3 DGAM10## General Plant Data/Storage 1 HXNT10## Accounting 1 LWSH10## Costing 1 PCKG10## PEDL10## Finished Products Material Type Materials Views created Valuation class FERT DXTR10## Basic data 1 7920 (Finished Products) DXTR20## Sales: Sales Org. Data 1 DXTR30## Sales: Sales Org. Data 2 ORMN10## Sales: General/Plant data MRP 1, 2, 3 Working Scheduling General Plant Data/Storage Accounting 1 Costing 1 Semi-Finished Products Material Type Materials Views created Valuation class HALB Basic data 1 7900 (Semi-Finished Products) TRWA10## MRP 1, 2, 3 Working Scheduling General Plant Data/Storage Accounting 1 Costing 1 Example: Moving Average Price 1) ABC International has 1,000 green widgets in stock as of the beginning of April, at a cost per unit of $5. 2) It sells 250 of these units on April 5, and records a charge to the cost of goods sold of $1,250, which is calculated as 250 units x $5 per unit. This means there are now 750 units remaining in stock, at a cost per unit of $5 and a total cost of $3,750. 3) ABC then purchases 250 additional green widgets on April 10 for $6 each (total purchase of $1,500). The moving average cost is now $5.25, which is calculated as a total cost of $5,250 divided by the 1,000 units still on hand. 4) ABC then sells 200 units on April 12, and records a charge to the cost of goods sold of $1,050, which is calculated as 200 units x $5.25 per unit. This means there are now 800 units remaining in stock, at a cost per unit of $5.25 and a total cost of $4,200. Exercises: (Due date 9/28/2015) 1. Create primary cost elements 2. Create secondary cost elements 3. Create cost element groups 4. Open period for variant 5. Close period 6. Review accounts 7. Display balance I 8. Enter G/L account posting 9. Display balance II 10.Determine tax version 11.Define tax accounts 12.Configure automatic posting for materials 13.Maintain default values for tax codes 14.Set tolerance limits for price variance 15.Set tolerance limits for goods receipt 16.Set tolerance limits for invoice Exercises: 17. Define tolerances (vendors) 18. Default values for inventory 19. Default values foe plants 20. Define attributes of material types 21. Create trading goods