unit 7-materials management-master data and rules
TRANSCRIPT
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Unit 7
Materials Management(MM)- Master Data and
Rules -
MELJUNCORTES
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Master Data
Master data is relatively fixed Material master data
Vendor master data
Purchasing information record
General Ledger master data
Before making the master dataconfigurations, you must havecompletely defined theorganizational structures
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R/3
FIFinancial
Accounting
COControlling
PSProject
SystemWFWorkflow
ISIndustry
Solutions
MMMaterials Mgmt.
HRHuman
Resources
SDSales and
Distribution
PPProduction
Planning
QMQuality
Mgmt.PMPlant Maintenance
SMServiceMgmt.
Client / Server
Integrated Business
Solution
ECEnterpriseControlling
AMFixed Assets
Mgmt.
R/3
FIFinancialAccounting
COControlling
PSProjectSystemWF
WorkflowISIndustry
Solutions
MMMaterialsMgmt.
HRHuman
Resources
SDSales andDistribution
PPProductionPlanning
QMQualityMgmt.
PMPlant Maintenance
SMServiceMgmt.
Client / ServerIntegrated BusinessSolution
ECEnterpriseControlling
AMFixed AssetsMgmt.
Materials Management (MM)
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Unit 7, Part 1 Overview(Master Data)
Unit Concept
Procure-to-Pay Process
Vendor Master Data Purchasing Information Record
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Unit Concept
The purchasing process involves theacquisition of goods and services tosupport the creation of goods and
services in the organization
Master data and rules required forthe purchasing process is presented
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Procurement Process(Procure-to-Pay)
PurchaseRequisition
Paymentto Vendor
NotifyVendor
VendorShipment
InvoiceReceipt
GoodsReceipt
PurchaseOrder
3-WayMatch
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Master Data General
Business rules and supportiveinformation are stored in master datarecords
Each master data record is unique inname or number
Internal or external number rangesare possible
Usually created or converted (legacy
system) in the beginning
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Master Data General
(continued) Vendor master records aremaintained by both accounts payable(A/P) and purchasing
Material master records aremaintained by purchasing, sales,production, accounting, etc.
Purchasing information records aremaintained primarily by purchasing
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Vendor MasterOrganization of the Data
General
Data:
Address Purchasing
Data
Vendor 10001
General Data
Company Code DataFinancial Accounting (FI)
Purchasing OrganizationData (MM)
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Vendor Master Data
A master record must be created forevery vendor
General data, Company Code data(Financial Accounting - FI), andPurchasing Org data (MaterialManagement - MM) Purch. org data
Purchasing dataPartner functions
Company code data
Account managementPayment
transactions
General data
AddressControl data
Payment
transactions
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Vendor Master
Includes all data necessary forprocessing business transactions andcorresponding with vendors
Information is shared between theaccounting and purchasingdepartments
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Vendor Master Typical
Screens Address Control
Payment Transactions Accounting Information
Correspondence
Purchasing Data
Partner Functions
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General Data Address
AddressVendor NameSearch TermStreet addressCity, Region Postal codeCountry
Communication
LanguageTelephone, Fax, E-Mail
Vendor MasterGeneral Data Address
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Vendor Master
General Data Control Data Account Control Customer
Authorization
Trading partner Group key
Tax Information Tax codes
Fiscal address
Country code
City code
Reference Data / Area International locator number
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Vendor MasterGeneral Data Payment
Transactions Bank Details Bank Key
Bank Account
Account Holder
Partner Bank Type
Payment Transactions Alternative Payee
Instruction Key
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Vendor Master Company
Code AccountingInformation Accounting Information
Reconciliation Account
Sort Key
Interest Calculation Interest Calculation Indication
Interest Calculation Frequency Withholding Tax
Withholding Tax Code
Exemption Number
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Vendor Master CompanyCode
Payment Transactions Payment Data Payment Terms
Tolerance Group
Check Double Invoice
Check Cashing Time
Automatic Payment Transactions Payment Methods
Alternate Payee
Payment Block
Invoice Verification
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Vendor Master Purch.Org. Data
Purchasing Data Conditions Order Currency
Terms of Payment Incoterms
Minimum Order
Value Sales Data
Salesperson
Control Data
AcknowledgementRequired
Returns to Vendor Automatic Purchase
Order Default Data Material
Purchasing Group
Planned DeliveryTime
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Vendor Master Purch.Org. Data
Partner Functions Partner Functions Partner Function
Partner Name
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Vendor Master Purch. Org.
Data Account Group Vendor masters are assigned to avendor account group
Through field status maintenance,vendor account groups can be setupfor one-time vendors, regionalvendors, and internal vendors
The vendor account group controlsboth type and number rangeassignment for vendors
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Purchasing Info Record
The purchasing info record providescontinuously updated informationabout the relationship of a specific
material with a specific vendor
Order unit, price, price changes,tolerances, reminder infos, historic
data, statistics, texts
Choice of automatic or manualupdating
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Source List
The source list stores informationabout where to acquire a givenmaterial for a given period of time
It specifies whether this sourceshould be used by MaterialsRequirement Planning (MRP)
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Unit 7, Group 1 Exercises
59. Vendor Account Groups
60. Create Vendor Master Accounting Record
61. Create Vendor Master Purchasing Record
62. Create Vendor Master Record Centrally
63. Create Vendor Master Record Centrally
64. Create Vendor Master Record Centrally
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Rules
Defines the parameters for MasterData and Transactions
Determines functionality for MasterData and Transactions
Relatively fixed
Changes as policy changes
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Fiscal Period
In order to execute any materialpostings, the current fiscal period hasto be activated
By initializing the company code formaterial management, the firstmajor integration between Financial
Accounting (FI) and Logistics iscompleted
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Plant Parameters
Material Requirements Planning(MRP) controllers
Individuals responsible for running andmaintaining Material RequirementsPlanning data and reports
Negative stock allowance
If a material is allowed to go negativefor inventory stock
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Plant Parameters
(continued) Purchasing Special purchasing rules
External purchasing only settings Planned orders
Rescheduling
Conversion to purchase requisitions
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Plant Parameters
(continued) Document number ranges Planned orders
Purchase requisitions Material Requirements Planning (MRP)
lists
Reservations
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Material Requirements
Planning Detailed planning level Primary Functions
Monitor inventory stocks Determine material needs
Quantity
Timing
Generate purchase or production orders
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Materials RequirementsPlanning
(continued) Integrates Production Planning (PP)
module with the MaterialsManagement (MM) module
Prerequisites for MaterialsRequirement Planning (MRP) Activate Material Requirements Planning
(MRP) for a plant Material Master created
Material Requirements Planning view
Material Requirements Planning type
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Material RequirementsPlanning
Basic Process Exploding the Bill of Material (if usingproduction)
Netting Out Inventory Lot Sizing
Time-phasing requirements
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Material RequirementsPlanning
Net Requirements Material Requirements Planning(MRP) calculates the quantity ofmaterial needed, if any, based on
Sales Orders
Material Reservations
Repair Parts Inventory
Purchase Orders
Etc
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If adequate inventory is not availableto meet Material RequirementsPlanning (MRP) needs then the
system generates Planned Production Orders
Planned Purchase Orders
Material RequirementsPlanning
Net Requirements (continued)
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Material RequirementsPlanning
Lot Sizing Static Based on fixed values in the Material
Master
Periodic
Groups net requirements together frommultiple periods
Optimum
Calculates the optimum lot size for a
several periods of net requirements
Unit 7 Gro p 2 E ercises
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Unit 7, Group 2 Exercises
65. Initialize Fiscal Period for Company Code
66. Maintain Plant Parameters for MaterialManagement
67. Activate Materials Requirements Planning
Unit 7 Part 3
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Unit 7, Part 3Overview (Material
Master) Industry Sector Material Type
Maintenance Features Organizational Levels
Primary Views
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Material Master IndustrySector
Records are grouped according toindustry sector and material type
Determines the industry specific datathat will appear on the master record
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Material Master MaterialType
Material types group materials withthe same attributes
Material type informationdetermines:
What views are maintained
Whether internal or externalprocurement is allowed
If changes in material quantity areupdated
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Material Master MaterialTypes
Standard material types are used inall 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
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Material Master MaterialTypes (continued)
FERT: Finished Products
Are produced internally
Normally no purchasing views exist
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Material MasterAdditional Material Types
HIBE: Operating Supplies
VERP: Customer returnablepackaging
LEER: Empty containers
KMAT: Configurable material
ERSA: Spare parts
DIEN: Services
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Material MasterAdditional Material Types
(continued) NLAG: Non-stock, non-valuatedmaterial
UNBW: Non-valuated, stockedmaterial
FHMI: Production resources/tools
WETT: Competitive products PROD: Product group
IBAU: Maintenance assemblyPlant Maintenance
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Material MasterMaintenance
Defaults - speeds entry of data byusing the most frequently used fieldvalues (plant, purchasing
organization, etc.) Reference Material - speeds entry of
data by copying data from existingmaterial master
Profiles - speeds entry of data bycopying standard data created in aprofile into a selected view Materials
Requirements Planning (MRP)
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Material Master Data
Material master data can be relatedto all organizational levels
General information of a material(description, number, base unit ofmeasure)
Has to be related to the highest level oforganization - the client
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Material Master Levels
Client
Description
Units of measure Material number
Engineering data
Plant Planning data
Manufacturing data
Material Master Levels
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Material Master Levels(continued)
Storage Location Stock quantities
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Material Master Views
Basic data 1, 2
Classification
Sales: sales organization data 1, 2 Sales: general/plant data
Sales text
Purchasing
Purchase order text
Forecasting
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Material Master Views(continued)
MRP 1, 2, 3, 4
Work scheduling
Storage Warehouse management
Quality management
Accounting 1, 2
Costing 1, 2
Material Master Material
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Material Master MaterialManagement
Basic Data
Purchasing
MRP 1,2,3 General Plant
Data/Storage
Accounting 1
Purchas
ing
View MRP1View
BarrelPen
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Material Master Basic Data
General data Basic Unit of Measure
Unit of measure in which stocks of the
material are managed Material Group
Key that you use to group together severalmaterials or services with the sameattributes (e.g. productions, sales, touring-bike, off-road)
Division
Used to determine the sales area and thebusiness area for a material, product, orservice
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Material Master Basic Data(continued)
Dimensions/EANs 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
The space that the material occupies perunit of volume
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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, whois/are responsible for certain purchasingactivities.
Purchasing Values Purchasing Value Key
Define the reminder days and tolerancelimits for purchasing
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Material Master PlantData/Storage 1
General Data Container Requirements
Define the regulations that govern whichtype of container the material must be
stored and shipped in Storage Conditions
Defines the conditions on how a materialmust be stored or warehoused
Shelf Life Data Minimum remaining shelf life
Minimum time the material must keepupon goods receipt for the goods receipt tobe accepted by the system
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Material Master MRP 1
General Data Purchasing Group
The buyer(s) who are responsible for certain
purchasing activities MRP Procedures
MRP Type
Determines whether and how the material isplanned
Reorder Point
If stock falls below this point, the system isflagged to create a planned order
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Material Master MRP 1(continued)
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
The quantity to be ordered
M i l M MRP 2
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Material Master MRP 2
Scheduling Planned Delivery Time
Number of calendar days needed to obtainthe material
Scheduling Margin Key
Used to determine the floats required forscheduling
Net Requirement Calculation Safety Stock
Specifies the quantity whose purpose is tosatisfy unexpectedly high demand in thecoverage period
M t i l M t MRP 3
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Material Master MRP 3
Availability Check Specifies whether and how the system
checks availability and generatesrequirements for materials planning
M t i l M t
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Material Master Accounting 1
Current Valuation Valuation Class
Allows the stock values of materials of thesame material type to be posted to differentG/L accounts.
Allows the stock values of materials ofdifferent material types to be posted to thesame G/L account.
Determines together with other factors theG/L accounts updated for a valuation-relevant transaction (Material Movements)
Price Unit
Number of units to which the price refers
M t i l M t
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Material Master Accounting 1 (continued)
Current Valuation Price Control Indicator
The price control used to valuate the stockof a material (e.g, Standard or MovingAverage Price)
Standard Price
The valuation of material stocks at standardprices means that all goods movements arevaluated at the same price over anextended period
Moving Average Price
The system calculates the moving averageprice automatically by dividing the material
Unit 7 Group 3 Exercises
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Unit 7, Group 3 Exercises
68. Define Attribute for Material Types (SetUpdating/Deselect Classification)
69. Create Material Master for Trading Goods
70. (Optional Exercise) Create Material Master
for Operating Supplies