Configuring the MM Structures

Slide 2

Review of the Procurement Process

GoodsReceipt

PayInvoice

PurchaseRequisition

PurchaseOrder

InvoiceReceipt

InternalDemand V

en

dor

Slide 3

Materials Management (Functions) Purchasing activities Goods receipt Storing materials Issuing materials

Slide 4

Materials Management (Integration) MM is integrated with FI

Materials are described in MM Vendors are described in both MM and FI

Slide 5

Materials Management (Valuation) SAP can value materials differently

(called the valuation level 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

Slide 6

Materials Management (Valuation)

Slide 7

Organizational Units 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

Slide 8

Organizational Unit (Plant) 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

A plant can have several shipping points (loading docks)

A shipping point can be assigned to several plants

Slide 9

Organizational Unit (Plant) Plants are created (defined) from the

IMG Plants have a factory calendar

Once created, plants must be (assigned) to a company code Back to definement and assignment A plant belongs to exactly one company

Slide 10

Organizational Unit (Plant Factory Calendar) SAP defines most country calendars 3 parts

The factory calendar Holiday calendar

Derived from public holidays Transaction

code SCAL

Slide 11

Organizational Unit (Plant) 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

Slide 12

Organizational Unit (Storage Location) A storage location identifies where a

material is stored It might be as simple as raw materials /

work in progress / finished goods Or as complex as a unique bin at an

Amazon.com Requires enabling the warehouse

management subsystem Storage locations can be physical or

logical

Slide 13

Organizational Unit (Storage Location) Storage locations are created using the

IMG A storage location applies to exactly one

plant

Slide 14

Organizational Unit (Purchasing Organization) Responsible for the procurement of

materials and/or services A purchasing organization is assigned to

one or more plants A purchasing organization has

Its own vendor master data Its own pricing conditions Its own external purchasing documents

Slide 15

Organizational Unit (Purchasing Organization) Purchasing organizations can be

configured differently Centralized Distributed Hybrid

Slide 16

Organizational Unit (Purchasing Organization) A purchasing organization is assigned to

one or many plants Centralized

Responsible for many plants Assigned to multiple plants possibly

having different company codes Decentralized (Company-specific)

Purchasing organization assigned directly to a company code

Slide 17

Organizational Unit (Purchasing Organization) Plant-specific purchasing

A purchasing organization is responsible for one and only one plant

Again, purchasing organizations are created from the IMG

They are then assigned