Configuring the MM
Structures
Review of the Procurement
Process
Internal
Demand
Purchase
Requisition
Purchase
Order
Vendor
Goods
Receipt
Invoice
Receipt
Pay
Invoice
Materials Management
(Functions)
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Purchasing activities
Goods receipt
Storing materials
Issuing materials
Materials Management
(Integration)

MM is integrated with FI
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Materials are described in MM
Vendors are described in both MM and FI
Materials Management
(Valuation)
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SAP can value materials differently (called the
valuation level
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At the company-code level, the same material
has the same value across all plants
At the plant-level, each plant maintains prices
separately
Note that the valuation level-is set once for
the entire client and cannot be changed
Materials Management
(Valuation)
Organizational Units
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A company code has one or more plants
A plant has one or more storage locations
A purchasing organization is responsible
for purchasing goods for one or many plants
A purchasing group is a group of buyers
responsible for purchasing specific kinds of
materials
Organizational Unit (Plant)
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A plant is typically a physical place but does not have
to be
Typically a manufacturing facility, distribution center
or other physical place where the company does
business
A plant applies to one and exactly one company code
A plant is used to determine the shipping point for
goods

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A plant can have several shipping points (loading docks)
A shipping point can be assigned to several plants
Organizational Unit (Plant)

Plants are created (defined) from the IMG
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Plants have a factory calendar
Once created, plants must be (assigned) to a
company code

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Back to definement and assignment
A plant belongs to exactly one company
Organizational Unit
(Plant Factory Calendar)


SAP defines most country calendars
3 parts

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The factory calendar
Holiday calendar

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Derived from public holidays
Transaction
code SCAL
Organizational Unit (Plant)

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Remember a business area is a FI organizational
unit used to categorize areas operations
 A single business area can be assigned to a plant
A plant can be responsible for several sales
organizations and distribution channels
MRP is performed at the plant organizational level
A Plant has its own material master records
Organizational Unit
(Storage Location)

A storage location identifies where a material
is stored

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It might be as simple as raw materials / work in
progress / finished goods
Or as complex as a unique bin at an
Amazon.com

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Requires enabling the warehouse management
subsystem
Storage locations can be physical or logical
Organizational Unit
(Storage Location)

Storage locations are created using the IMG

A storage location applies to exactly one plant
Organizational Unit
(Purchasing Organization)

Responsible for the procurement of materials
and/or services

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A purchasing organization is assigned to one or
more plants
A purchasing organization has
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Its own vendor master data
Its own pricing conditions
Its own external purchasing documents
Organizational Unit
(Purchasing Organization)

Purchasing organizations can be configured
differently

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Centralized
Distributed
Hybrid
Organizational Unit
(Purchasing Organization)

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A purchasing organization is assigned to one
or many plants
Centralized

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
Responsible for many plants
Assigned to multiple plants possibly having
different company codes
Decentralized (Company-specific)

Purchasing organization assigned directly to a
company code
Organizational Unit
(Purchasing Organization)

Plant-specific purchasing

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
A purchasing organization is responsible for one
and only one plant
Again, purchasing organizations are created
from the IMG
They are then assigned