Material Management

TABLES

2008-03-20T11:57:00.001+05:30

Materials Management Tables

MBEW Material Valuation

MKPF Header- Material Document

MSEG Document Segment- Material

MVER Material Consumption

MVKE Sales Data for materials

EINA Purchasing Info Record- General Data

EINE Purchasing Info Record- Purchasing
Organization Data

MAKT Material Descriptions

MARA General Material Data

MARC Plant Data for Material

MARD Storage Location Data for Material

MAST Material to BOM Link

RKPF Document Header- Reservation

T023 Mat. groups

T024 Purchasing Groups

T156 Movement Type

T157H Help Texts for Movement Types

2007-12-01T12:30:00.000+05:30

SAP MM FAQ

SAP Material Management Frequently Asked Question

Q: How can I extend all material to a new plant?

A: The SAP program - RMDATIND is used to create /update material master record.

Q: How can we delete materials permanently from Material master?

A: Use transaction MM70 - Material Master->Other->Reorganization->Material->Choose.

Build variant with selection range of material master records to be selected for

Deletion and maintain,
Run parameters.

Execute.

Use transaction MM71 - Material Master-> other-> Reorganizationn-->Material->Reorganization

Build a second variant Maintain run parameters and execute.

It is also important to remove the records manually from info record, POs, PRs, reservation etc For successful deletion of the material.

Q: SAP only provides moving average value for current, previous period, and previous year. SAP does not provide transactions/reports that will provide moving average value for a given date.

How can I report moving average price for material number 10000000 at plant 0001 on July 4,1998 ?

A: Try any of these solutions:

1. Change the updating level of the structure (S031) to "daily". In LIS the total value and the total stock are available. Divide value by the stock. It is possible to calculate this dynamically when the analysis is run and to display the result.

2. Create your own structure in LIS and populate it by copying the Moving Average Price from the material master every time there is a transaction. You will have data on those days when there was a transaction.

Q: We have defined all the variables for the materials. However, when I attempt to use Material Matchcode object MAT1, I get the response "No possible entries found". Why?

A: Matchcode i.d. "B", "Material by bill of material" has a selection condition for field STLNR NE ' '. STLNR is the BOM number associated with a material in table MAST. Hence the message - "no possible entries..." pops up if there are no bills of materials associated with your material numbers.

You get the matchcodes as long as the material referred by you has BOM number associated with it.

Q: The matchcode object selection is defaulted to matctcode ID "B". Iwould like to change to M " Material by Description" What is the solution?

A: Press the pull down arrow on the material number field and matchcode "B" is displayed, press F5 double-click matchcode i.d. "M", then press F6 . This will set matchcode "M" as the default.

Q: We have one material master : X and the unit of measure is 'pcs' and two serial number : A,B For this material we make two Pos
First PO calls material X , 1 pcs price 100 (will use serial number A)
Second PO calls material X , 1 pcs price 250 (will use serial number B)
Goods Receipt is done and by filling serial number for the fist PO with A and the second PO with B. We want to transfer material X serial number A to another plant and want the valuation of this material as 100. How we can do it ?

A: Use "split valuation". Stocks may be received into separate storage locations. Transfer stocks may be done from a storage location/plant to another storage location/plant.

Q: We want to change the calculation of Moving Average Price. We know that the same is in MBEW-VERPR and two transactions to consider - MRHR, MB01. Is there a transaction to change MAV or all the places it is needed?

A: Any Goods receipt or issue (in case of split valuated material) changes Moving Average price depending upon the valuation type which is used when posting the goods issue. You have t go through all the transactions involving those!

For Example:

Material X is using split valuation by origin:
Malaysia : MAV 60 USD - total stock 100 units
India: MAV 50 USD - total stock 200 units
Total stock 300 units MAV 53.33

Here , goods issues will also affect the global MAV, despite not changing MAV from origin country.

Q: What is the use of configurable material.?

A: Configurable material is useful if you have a large number of combination of parts that go into a product. It means different permutations and combinations of the parts for same material. If you maintain a unique material code for each combination , you require a large number of material numbers. KMAT may be used in such a case where you maintain just one generic product code.

A super BOM is maintained for such a material consisting of all possible alternatives. A routing is also maintained consisting of all possible operations that could be used. Typically configurable material is used in Made To Order (MTO) environment. However frequently ordered configurations may be planned with a material variant which needs to have a material master record.

Thus Material variants may have stock and value. Depending upon characteristic values chosen at sales order entry Sales Order BOM is created. Routing operations are also chosen depending upon which BOM components are assigned to them.

Q: Will Source List automatically appear in Material Master as default if maintained at plant level using OME5?

A: If you have maintained source list requirement in OME5 and have not maintained the source list for the material. PO cannot be released. You are required to maintain source list for all materials in the plant where the indicator is set if you maintain source list at plant level. Else you can make use of info record to do so automatically.

Q: We have One company with a plant and another company with a sales organization. Which is better option between these - PO or Stock Transfer Order ?

A: 1) Cross company Stock Transport Orders can be done.

2) Configure using transaction OMGN.

3) Depending upon the sending and receiving plants, maintain sales organization and customer data in customizing.

4) Maintain the supplying plant as a vendor and attach the plant to the vendor in the Vendor Master.

5) Material type has to be HALB or HAWA.

6) Ensure that the company with sales Organization has a plant to take care of stocking.

7) The PO used is NB and not Stock Transfer PO.

8) Configure SD for inter-company billing to enable picking up the pricing procedure for billing.

9) Carry Out delivery through process delivery due list and billing through process billing due list.

Q: We can make field mandatory. We want to make a default value to a Particular field in the Material Master. Say, We want that the period indicator in the MRP2 view as "P". What is the best way?

A: Use transaction variant. Transaction SHD0 and then Transaction SE93.

SAP Workflow

Q: The following is set up for workflow:

1. Workflow organization Structure with two positions is created and assigned a person to both positions

2. Assign tasks to agent

TS 00007986 Requisition release - TO JOBS

TS 00008014 Purchase requisition release refused - GENERAL

TS 00008018 Requisition released - GENERAL

TS 00008348 Requisition release reset - GENERAL

WS 00000038 Workflow for purchase requisition release - TO JOBS

3. Activate event linkage

WS 00000038 Workflow for purchase requisition release
WE BUS2009 RELEASESTEPCREATE Purchase requisition Release step create is activated.

4.Activated release codes for workflow
[1= Role resolution with group, code, and plant (T16FW)]

5. Assigned release codes to agent (JOBS created in 1)

The following error appears
"Work item 60772: Linkage to object BUS2009 event REJECTED cannot be written ".

A: Use transaction SWE2. Make sure "object BUS2009 event REJECTED" is enabled.

2007-10-08T04:54:00.000+05:30

SAP MM Support Problem Solution

Is it possible to maintain the same material master with same code in all plants in a company. Our client is using same materials in all their four plants?

Material numbers are always maintained at Company code level. If you look at the Material master data, some data is maintained at Company code level, some at Plant level and some at Storage location level. If you have all the 4 plants attached to one company code, they should have the same material number. What you need to do is to extend the material to all the 4 plants if thats your requirement. Also, if you have your valuation area as your Plant, then you have the flexibility to maintain Plant specific pricing for the same material.

You can use MM01 T code to copy material from old plant to new plant. But check for the required details in your new plant and make changes accordingly.

Where we do the configuration for the cost centre allocation, because whenever we GR a material, accounting document is created for that particular material. How that particular material go in to the particular accounting (G/L account)

In Tcode: OBYC -- Automatic Postings.

for Inventory Posting Trns Key is: BSX
for Off setting entries like Goods issue, initial stock......Trans Key is : GBB

Based on the Movement types, Valuation class it will be assigned to a G/L account.
You can refer the configuration in Tcode: OBYC

Could any one can explain complete configuration of pricing procedure & application.

The Basic thing is Condition Technique. In which there are

1. Access Sequence 2. Condition Record 3. Condition Type 4. Condition Table.

A Access Sequence access a Condition Record of a Condition Type in a Condition Table is a Condition Technique.This is a simple logic

Here the Condition Type is very important like PB00, PBXX,RA01 etc.
In the background every Condition Type has its own defition means the purpose of the Condition Type like, is it for Pricing or Percentage, Quntity base, Accrual Feilds etc is to be defined to work this functions. Normally we use the existing ones without any risk. But some cases, we have to Create a New Condition Types as per the organisation requirement.

The Pricing Schema is useful to minimise condition types while mention prices for Vendor on the basis of Pricing Schema which we defined according to organisation requirement.

The Pricing Schema means the calculations procedure of Condition Type.

Ex. RA01 - Discoount % is caclulated on PB00 - Gross Price means RA01 is based on PB00 like that we have to define in the Pricing Schema which makes easy to use in real time. Here PB00 has the Access Sequence - 0002. But RA01 does not have the Access Sequence.Why because it is a dependent on PB00. But both are Condition Types.

In the system, by default some standard Scheme will be there at Vendor Schema Group in the Vendor Master Screen means the standard one is assigned which is very lengthy which may fullfil our requirement. But some cases which may not fullfil our requirement, in such we have to define.

For the configuration, I may not able to explain properly through here but will give some idea.

Configuration: SPRO - IMG - Material Management - Purchasing - Conditions - Define Price

Deternmination Process:

1. Define Access Sequence

2. Define Condition Type

3. Defince Calculation Schema:- Here you have to define the Schema

- Define Schema group

1. Define Schema Group vendor

2. Define Pricing Schema group

3. Schema group for Purchase Organisation

4. Assign Schema group to Purchase Organisation - Define Schema determination
1.define calculation schema for Standard purchase organisation

After completion of the Schema Group, we have to assign it to Vendors. Then whenever we use any transaction with this Vendor, the concerned Schema will work as configured by us.

The Pricing in MM is vast because each Condition have its own importance and each Access Sequence have its own importance. So you need not bother about this. First you learn how to define the Calculation Schema through the above.

2007-10-08T04:51:00.000+05:30

SAP Material Management Interview Questions

Problem is that after goods receipt and AFTER invoice verification, reversal of goods receipt is being done. Client wants this more controlled as the GRIR account is being affected. So no reversals to be done after Invoice verification. How to approach this?

Make this setting: SPRO > Materials Management > Inventory Management and Physical Inventory > Goods Receipt > For GR-Based IV, Reversal of GR Despite Invoice

Here remove the tick against Mvt 102 & 122.

Now the system will not allow to return the Good at any case.

I have created a new vendor. Later I found that there were some mistakes and that I want that the system should not allow me to make any PO or post any entries to this vendor. How to deactivate this vendor?

You can block a vendor at the following levels:

All company code
Single company code
All Purchase org
Single Purchase org

Where to Get the Goods Movement Type List?

Step 1) Run spro command/TC

Step 2) Then move to "SAP Reference IMG" screen

Step 3) Then navigate following path:

IMG --> Materials Management --> Inventory Management and Physical Inventory --> Movement Types --> Copy, Change Movement types

Here with "Copy, Change Movement types" option a help tutorial is available (rectangular blue colour icon). In that go to "Further information" section where you can find a big list of movement types with some brief explanation.

Where the schedule margin key is customized?

You define the order float in the scheduling margin key, The scheduling margin key is copied from the material master. The float before production or float after production and the release period are defined in the scheduling margin key

For Customizing for Shop Floor Control, by choosing Operations --> Scheduling --> Define Scheduling Margin Key .
The scheduling margin key is assigned to the material ( MRP area in the material master) and is transferred when the production order is created. These values can be changed in the production order.

What is the function of OBYC?

Function of the OBYC stand for Configure Automatic Postings. In this step, you enter the system settings for Inventory Management and Invoice Verification transactions for automatic postings to G/L accounts.

Postings are made to G/L accounts automatically in the case of Invoice Verification and Inventory Management
transactions relevant to Financial and Cost Accounting.

For example, Posting lines are created in the Stock account and Consumption account.

Tell me what is *make to order*?

Make-to-order production is a process in which a product is individually manufactured for a particular customer. In contrast to mass production for an unspecified market where a material is manufactured many times, in make-to-order production a material is created only once though the same or a similar production process might be repeated at a later time.

In global trade, you often need to process several different kinds of transactions at the same time. The Trading Execution Workbench (TEW) provides a central cockpit where traders can process trading contracts and their subcomponents, such as purchase orders and sales orders and follow-on documents. In addition, TEW automates a large part of the data entry, making processing quicker, easier, and more error-free.

How to delete a material completely?

Try MMDE transaction but be careful this will remove all material from Client.

What is the use of Tables in MM. i.e. How the tables get created?

Through SE11 you can create a new Table. In MM if you create a Material Master MARA, MARM, MARC,MARD, MBEW & MVKE will updated. In Vendor Master LFA1, LFB1 & LFM1 will be updated. The same applies to EKKO,EKPO for P.O, MSEG & MKPF for MIGO & RBKP for MIRO.

If in any error, only the message no. ! or the table no. is shown , then how to resolve the error using message no. or table no.?

Contact ABAP or BASIS person to resolve this.

How to create new transaction codes?

In transaction code SE93 you can create, Change & Display a Transaction Code.

2007-10-08T04:43:00.000+05:30

Interview Questions on SAP MM

1. What are the types of special stocks available?

Subcontracting, consignement, pipeline, project, sales order, RTP, stock transfer ,third party.

2. What are the types of inforecords?

Standard, consignment,subcontracting & pipeline.

3. What is meant by consignment stock?

The stock supplied by the vendor is in the companies premises with the company having no liability for the same. The liability for the company will only be affected when the goods are issued from the consignment stock for use.

4. What are the steps involved in consignment cycle?

Create consignment info record with proper tax code, create Po with item category K, maintain output condition record for KONS, process GR, no invoice verification done, but settlement is done through MRKO transaction.

5. Tell me about the subcontracting cycle.

The Po is created with item category L , the goods is transferred to subcontractor by 541 movemet. for this movement note no accounting docs take place. When GR is done automatically, 543 movemnt takes place which take care of the consumption of components from stock.

6. How are the byproducts taken care of in subcontracting?

You can add these by products in the BOM for the header matl.

7. What is meant by scales?

Can scales be used in standard purchase order? You can fix a price in the info record for a say qty from 1-100 price RS150 & if the order qty is 101- 500- the prices is 140 . Scales cannot be used directly in PO but can be pulled into the PO from various master data like info record, quota arrangement.

8. What is the difference between a contract and a scheduling agreement?

With regard to Outline Agreement:

1. You can create the centrally contract (cross-plant) where you can maintain different pricing conditions for each and every plant

2. You have to create the Release Order with reference to Outline Agreement.

3. No detailed delivery schedule can be made in the Release Order.

4. No Release documentation is created.

5. Only time-dependent conditions can be created.

6. Some Item Category 'M' and 'W' can be used.

With regard to Scheduling Agreement:

1. The Plant Location must be entered in the Scheduling Agreement.

2. We do not have to create any other purchasing document except for delivery schedule line via Transaction ME38 or MRP running (with the appropriate setting of Source List).

3. Delivery Schedule line items are created subject to your specific requirement.

4. Can create both Scheduling Agreement with and without Release Documentation (subject to the Document Type LP or LPA) with the selection of either FRC or JIT delivery schedule.

5. Either time-dependent or time-independent conditions can be created subject to the customizing in the Document Type of the Scheduling Agreement.

6. Item Category 'M' and 'W' can not be used.

9. How does the system calculate taxes?

10. How does the system calculate nondeductible taxes?

11. What is meant by batches? How can the batches be searched?

A batch is a subdivision of your stock of a material having the same characteristics.
For instance:

- food production uses batches to indicate the day of production.

- paint production uses batches based on production date and the used ingredients. It is very hard to reproduce the same color in exactly the same way at two different moments.

- or else may be divided in batches based on their mineral content.

You can search batches using the standard search facility (match code, key F4) based on the naming convention of the batches or, if you use batch classification, based on the characteristics of the batches.

12. How is a shelf-life item managed in SAP? What is the full cycle?

13. What are the settings required for quota arrangement?

To set up a quota arrangement for the procurement of a material, proceed as follows:
Master data -> Quota arrangement -> Maintain, enter the material and plant number, press ENTER to display the overview screen for the quota arrangement periods, Enter a validity period for quota arrangement, Enter date until which the quota arrangement is valid. The start date is calculated by the system. Press ENTER .

Select the quota arrangement and choose Goto -> Item overview to display the item overview screen of the quota arrangement. Enter a quota arrangement item for each source of supply you want to include in the quota arrangement.

You must enter the following data.

- Procurement type

- Special procurement type, Enter k in the S column, for example, if a consignment arrangement for the material exists with the vendor.

- Vendor number

- Procurement plant (supplying plant):

- Quota column, enter the quota assigned to each item.

Press ENTER .

The percentage distribution of the quotas is calculated and displayed automatically by the system. Save the quota arrangement. The system assigns a number to the quota arrangement item automatically

14. What is meant by MRP Type and lot sizing?

15. Can it be configured in such a way that the external requisitions can also be taken into account while MRP runs in consumption-based planning if VB is selected as MRP type?

16. How are free items managed in a PO? yu need to tick the tem as free in the PO. The price will be zero for such PO's.

17. What are the differences between release procedure with classification and release procedure without classification? When are they used?

Release procedure with classification means the Purchase requsition can be released both at item level & at the header level. Release procedure with out classification can also be used for PR which is used for item level release only. all other external documents cannot be relesed with classification. The two procedures are mutually exclusive (that is to say, you must decide in favor of one of them only - you cannot use both).

18. Is it possible to have a release procedure without classification for a PO?

No

19. What is the maximum number of levels available in SAP?
Did not get this question …need answer to clarify.

20. Is it possible to have scales in a quotation?

21. What is GR blocked stock? When it can be used?

Whenever you are not sure about the quality of the product received, you can put in GR blocked stock.

22. How are the variations in subcontracting taken care of in SAP?

23. How to give specifications for developments?

We normally prepare a business requirement document in which we specify what is required. what field & tables have to be referred for the required development.

24. How to create PR or PO by MRP?

The PR is created according to the safety stock mentioned for the material or can be triggered from a requirement . For creating a PO, you need to have the scheduling agreement in place .After the MRP is run the schedule lines are generated which are nothing but the PO.

2007-10-08T04:36:00.000+05:30

Adding Views in Material Master

I am trying to add views using MM02. It is showing me just 3 views ...BASIC DATA1, BASIC DATA2 & CLASSIFICATION..... I want to add other views but am not able to do it.

There are 2 ways to add views to the existing material master:

1. Go to mm01

- Enter the material for which you want to add the views.
- Then you enter the same material in copy from material
- Then you may find all the view
- Then select the views you want to add and make entries in the same view and save it
All this is done in mm01.

You can mass extend views for a material in tcode mm50.
Select the maintenance status as V for e.g. if you want to add views of sales.

2. If the default setting is done in the material of the material type then you may not find the new views in mm01

If that is the case, then you go to spro >> log general >> mat master >> basic sett >> material types >> define attributes of materisl types.

- Select material type of the material in which you want to make the change

- Double click on the same, then on right hand side, you will find user parameters under which you will find the views

- Select the view you want and save your settings

- Then go to mm01 and do the way it is mentioned in the first step.

Why we are maintaining 4 views for mrp? What is the reason behind that?

The 4 MRP views that we maintain has got its individual importance like in

- MRP1 - For for consumption based planning

- MRP2 - Procurement type (inhouse or external)

- MRP3 - For Planning strategy & consumption period

- MRP4 - For repetitive mfg.

It is not mandatory to maintain all MRP views. It depends upon your company profile.

2007-10-08T04:32:00.000+05:30

Procedures for copying One Plant to Another

Can anyone give me a step by step process of creating another plant or storage location by copying from an existing one.

Plants Definition :

/NSPRO-IMG---Enterprise Structure---Definition---Logistic General---Define,copy,delete,check plant---Define Plant (In this, we are defining plants(s) under company which is defined earlier)

/NSPRO-IMG---Enterprise Structure---Definition---Logistic General---Define,copy,delete,check plant--- copy,delete,check plant---F6 to copy org. object from plant 0001 to defined plant(s).

Storage Location :
/NSPRO-IMG---Enterprise Structure---Definition---Materials Management---Maintain Storage Location-New Entries (Define required storage location(s) under different plant(s) )

/NSPRO-IMG---Enterprise Structure---Definition---Materials Management---Maintain Storage Location---Storage Location Description---- New Entries ( enter here addresses of each plants)

Copy Organizational object Plant using Transaction: EC02.
(recommended to Copy from a standard sap plant)
Create or copy storage location using :OX09

1. Copy existing plant A to new plant B. All of plant A’s data in throughout the IMG will be created/copied for plant B. In some cases with plant A data that is not desired. In step 3 you must go through and correct invalid entries

2. Correct address information

3. Correct data copied to plant B as plant A

(a) In Sales and Distribution -> Shipping -> Picking -> Determine Picking Location -> Assign Picking Locations (OVL3), delete entry where Shipping Point = plant A and Plant = plant B and press save.

(b) In Sales and Distribution -> Shipping -> Basic Shipping Functions -> Shipping Point Determination -> Assign shipping points – wherever plant B is found the shipping point is plant A,this must be changed to plant B.

(c) In Enterprise Structure -> Maintain Structure -> Assignment -> Sales and Distribution -> Assign shipping point to plant – delete plant B shipping point from the plant A assignement.

(d) In Enterprise Structure -> Maintain Structure -> Definition -> Sales and Distribution -> Define, copy, delete, check shipping point – copy shipping point plant A to shipping point plant B. Correct the description in the define section of this node.

(e) In Sales and Distribution -> Shipping -> Picking -> Determine Picking Location -> Assign Picking Locations (OVL3), copy plant A entry to plant B entry, changing all data to plant B.

(f) Check with Reorder buying group to determine MRP controllers for new plant. Remove plant A MRP controllers from plant B, and add controllers received from reorder buying group. IMG is Materials Management -> Consumption Based Planning -> Master Data -> Define MRP controllers

(g) Define special procurement. IMG is Materials Management -> Consumption Based Planning -> Master Data -> Define special procurement type.

(h) OMGN – Assign customer in “Set up stock transport order – [Plant]”.

(i) OMGN – in “Set up stock transport order – [Purchasing Document type]”; an entry was created for source plant B and plant A, this entry should have a UB order type and the check box should be off. Each plant needs a plant B UB entry created.

(j) OMJ3 – Delete incorrect entry in print parameters. Remove entry where plant = plant B & storage location = plant A. Create entry for plant B storage location B

(k) Verify entry for new plant exists in OVLT picking output

(l) Verify entry for new plant is correct in VP01

4. Manual configuration

(a) Create plant customer number and assign to plant in OMGN.

(b) OMJ3 – set correct printer for plant B

(d) Output determination OVLT (set printer),

In addition to above, other changes based on customization in your installation needs to be done as well.

2007-10-08T04:25:00.000+05:30

Safety Stock Calculation in SAP

Let me try and explain to you through a mix of functional procedures and how SAP calculates the Safety Stock:

In normal materials management there are basically 2 basic inventory management systems, the P system and the Q system.

P system is a system wherein replenishment is done keeping the quantity constant. The period becomes the variant. In other words you fix the quantity you want the stock to dip, to trigger a requirement. As soon as the stock level is reached you replenish the stock. During a lean period the time taken to reach the level will be longer and during an active period the time taken to reach that stock could drop.This normally relates with your consumption based planning.

Q system is a system wherein replenishment is done keeping the period constant. The quantity becomes the variant. In other words you will check for the level of stock at fixed time intervals (daily, weekly, monthly etc.) compare it with the requirements on that day and trigger the procurement process for replenishment.This normally relates with your MRP.

Now there are 4 more factors that could affect the idealistic procurement pattern:

1. Ordering Lead-time.

2. Manufacuring Lead-time

3. Transporting Lead-time

4. Stock conversion Lead-time (or Quality Inspection lead time)

A delay in any or all of the above can have effect on the entire replenishment process and the stock. A buffer stock must be designed to take into account the above coverage. Again the determination of your safety stock depends on the accuracy of your forecast. Higher your accuracy, lower your safety stock. This relationship between forecast accuracy and service level
is denoted by factor R. This also takes into account that the customer demand cannot be always satisfied 100% of the time.

Hence what we have is:

R = Relationship between forecast accuracy and service level (Service Factor)
W = Delivery time (in days) / Forecast Period (in days)
MAD = Mean absolute deviation (parameter for forecast accuracy)

Now If replenishment lead time is greater than the forecast period by factor W then:

Safety Stock = R x Sq.rt. W x MAD

Else

Safety Stock = R x W x MAD

Now in SAP If the material is produced in-house, the delivery time is: opening period + in-house production time + goods receipt processing time. It is expressed in workdays. The forecast period is taken from the material master record and is also expressed in workdays.

If the material is procured externally, the delivery time is: Processing time for purchasing + planned delivery time + goods receipt processing time. It is expressed in calendar days. The forecast period is taken from the material master record and is also expressed in calendar days.

As a result of this you will have observed now that the safety stock must cover both the unplanned material excess consumption, as well as the additional requirements caused by delayed deliveries.

In SAP you can specify a minimum safety stock. If the result of the safety stock calulation by the system is lower than this limit, the safety stock is automatically set to this value. You enter the minimum safety stock in the material master record (MRP 2 screen).

Safety Stock:

In IMG -> Materials Management -> consumption Based Planning -> Master Data -> Check MRP Types (transaction code OMDQ) you use the indicator Calculate Safety Stock so that system calculates the safety stock automatically.

The safety stock can be calculated automatically for materials planned with one of the consumption-based planning procedures if:

1. The service level has been maintained in the material master record.
2. Historical data exists
3. The forecast has been carried out for the material.

Dynamic Safety Stock:

If the option Define Range of coverage profiles is chosen in IMG (Tr.Code OM1A) you can determine a safety stock level that takes into account:

1. Requirements.
2. Range of coverage

The limiting factors to the above are:

1. Maximum and minimum range of coverage ( defined period , that is month, week or PPC planning calendar)

2. Determination of various periods for the validity of the range of coverage.

The system uses the formula:

Dynamic safety stock = average daily requirements (ADR) x Range of coverage

ADR = Requirements in the specific period / number of days in the total period length (defined period x standard days)

Please note here that if you carry out the planning run even in the middle of the month the system will include even the requirements planned at the beginning of the month.

Please also note that you can determine the range of coverage for a maximum of 3 periods.

1. Range of Coverage in the First Period
2. Range of Coverage in the second period
3. Range of coverage on the rest of the horizon

However you have the option of maintaining different coverage for each of these periods.

Based on your customization the system determines the number of days used for calculating your average daily requirement

Minimum Stock Level (mSL) = ADR x minimum range of coverage
Target Stock Level (Dynamic Safety Stock this is DSL) = ADR x Target range of coverage.
Maximum Stock Level (MSL) = ADR x maximum range of coverage.

Having confirmed the above, I will now try and explain through an example how the system calculates the Dynamic safety stock:

Presume that the system has determined the ADR as 25 Kgs for a material.

You have set the following in customizing:

Minimum Range of coverage = 2 days
Target Range of coverage = 6 days
Maximum Range of coverage = 10 days

Now the System determines the following;

mSL = 2*25 = 50 KGs
DSL = 6*25 = 150 KGs
MSL = 10*25 = 250 KGs

This is what happens for various levels of stock

Case 1:

Stock = 45 Kgs
System Activity = DSL - stock
Procurement Proposal = 105 Kgs

Case 2:

Stock = 60 Kgs
System Activity = DSL - stock
Procurement Proposal = 90 Kgs

Case 3:

Stock = 155 Kgs
System Activity = none
Procurement Proposal = none

Case 4:

Stock = 255 Kgs

System Activity = System checks whether the procurement proposal is firmed and if yes it displays an exception message.

Also note that in the case of Time Phased materials planning The range of coverage is calculated differently.

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Maintain Plant

Plant 0001 is the SAP default.

OX14 - Define Valuation Area (Tick one only- Once your system go live, no more changes)
Most company take the SAP recommended choice - Value Material Stock at Plant level
Value Material Stock at Plant or Company Level

If you valuate material stocks at plant level, the plant is the valuation area.
If you valuate material stocks at company code level, the company code is the valuation area.
The decision you make applies to the whole client.

OX10 - Create / Change / View Plants

OVXB - Create / Change / View Division

OX18 - Assign Plant to company code
e.g. 0001 - 0001 - All Plants
Px1 - Plant Px1
Px2 - Plant Px2
OX19 - Assignment of company code to the Controlling Area

OB38 - Assign company code to Credit Control Area

OMJ7 - Assign business area to Plant/Valuation area and division
e.g. Plant Px1 - Business Area Bx1
Bx2
Assign Valuation area to the Business Area
.e.g. Valuation area Vx1 - Business Area Bx1
Business Area Bx2

OMS0 - Assign Factory Calendar to the Plant and Business Area

The plant plays an important role in the following areas:

Material Valuation - If the valuation level is the plant, the material stocks are valuated at plant level. Each plant can have its own material prices and account determination.
Inventory Management - The material stocks are managed within a plant.
MRP - Material requirements are planned for each plant. Each plant has its own MRP data. Analyses for materials planning can be made across plants.
Production - Each plant having they own production/planning.
Costing - In costing, valuation prices are defined only within a plant.
Plant Maintenance - If a plant performs plant maintenance planning tasks, it is defined as a maintenance planning plant. A maintenance planning plant can also carry out planning tasks for other plants (maintenance plants).

If you want to use the application PP (production planning) or product costing and job-order costing, you must set valuation at plant level.

The valuation level that you choose affects

the maintenance of material master records
the G/L accounts in which material stocks are managed
the G/L accounts to which transactions are posted in Materials Management

Effect on the maintenance of material master records:

Depending on the valuation level chosen,

you maintain accounting data in the material master record for each plant or for each company code
you define a valuation price for the material in each plant or in each company code

Effect on G/L accounts:

If material stocks are valuated at company code level, all plant stocks of a material are managed in a joint stock account for each company code.
If material stocks are valuated at plant level, you can manage the material stocks for each plant in different accounts. For each plant, you can define a separate determination.
If several plants are to use account determination, you can group these plants in "Valuation and Account Assignment" Customizing.

Material Master - Introduction

The material master is the starting point for the rest of the modules.

What Material Types are there?

The material types that you use are configured in Customizing for the Material Master under

Logistics Master Data : Material Master -> Material -> Control data -> Define material type attributes.

The following list shows you the material types contained, for example, in the standard SAP R/3 System, and what their different roles are:

DIEN (services)
Services are procured externally and cannot be stored. A material master record of this material type can always contain purchasing data.

FERT (finished products)
Finished products are produced by the company itself. Since they cannot be ordered by Purchasing, a material master record of this material type does not contain purchasing data.

FHMI (production resources/tools)
Production resources/tools are procured externally and used in the manufacture of products. A material master record of this material type can contain purchasing data, but no sales data. It is managed on a quantity basis. Examples of production resources/tools are apparatus, equipment, and measuring and testing devices.

HALB (semifinished products)
Semifinished products can be procured externally (sub-contracting) as well as manufactured in-house. They are then processed by the company. A material master record of this material type can contain both purchasing and work scheduling data.

HAWA (trading goods)
Trading goods are always procured externally and then sold. A material master record of this material type can contain purchasing and sales data.

HIBE (operating supplies)
Operating supplies are procured externally and required for the manufacture of other products. A material master record of this material type can contain purchasing data but no sales data.

NLAG (non-stock material)
Non-stock material is material that is not held in stock because it is consumed immediately. (Office supplies such as stationary. You need to create purchase order and accounting document for payment but the stock balance is always zero as it is issued out immediately to the various department.)

ROH (raw materials)
Raw materials are always procured externally and then processed. Since raw materials cannot be sold, a material master record of this material type contains no sales data.

UNBW (non-valuated materials)
Non-valuated materials are managed on a quantity basis, but not by value.

VERP (packaging materials)
Packaging materials are used to transport goods and come with the goods free of charge. A material master record of this material type is managed both on a quantity basis and by value.

WETT (competitive products)
Competitive products have their own material master records created from the Basic Data view. The competitor's number, which is stored in the material master record, assigns the material to a particular competitor.

Maintain the Material Type

OMS2 - Material Type Maintenance - Create/Change/Display

Steps:-

transaction OMS2
click Change
key in the Material Type you want to change e.g. FERT then hit enter

The Views belows allows you to choose the Views for each Material Type.
(Press the Page up/Page Down keys to scroll the views)

If you tried to change from FERT to HAWA in 4.6x, you will receive an error message :-
The material type cannot be changed. This is not allowed if only external procurement is defined for the new material type, or if the new material type has a different account category reference than the old material type.

To overcome it, goto OMS2 and change the HAWA material type.
In the Internal/external purchase orders sections:
Original Changes
Ext. purchase orders 2 1
Int. purchase orders 0 1

Screens in Material Master

MM01 - Create, MM02 - Change, MM03 - Display and MM06 - Flag for deletion.
MM04 - Display the changes done to the material master.
MMAM - Change the Material Type. for e.g. from FERT to HALB

Configure the Material Master Screen MM01 / MM02 / MM03

OMSR - Assign the field to the field group
OMS9 - Maintain the data screen field

Unit of Measure

In the material master, there is a Units of measure button for users to store in the different conversion rate. This sample program (ZUNT) extract the data from the unit of measure conversion table.

In the Material Master the moving average price are affected by:-

Goods Receipt for Purchase Orders
Transfer from Plant to Plant
Invoice Receipt
Settlement
Price Change

Common configuration changes-

define new material group (OMSF)
define new valuation class (OMSK) and automatic posting (OBYC)
define new material account assignment group (transaction OVK5) and
Customer/Material/Account keys (transaction VKOA)

Block materials from inventory posting

After blocking, when the user do a inventory posting, they will get this error message :-

E: Material xxxxx has status Blocked for procmnt/whse

To activate the blocking :-

Goto transaction MM02 - Purchasing View

Type in 01 at the MM/PP status field and save it

Create Delivery Log - Material xxx is blocked

During the Create Delivery (VL01), SAP prompt you a log that Material xxx is blocked.

During the Sales Order Create/Change for that material, there might be some update termination that causes the locked of the material (Windows hanged or power failure).

You can check using transaction SM12 - type an "*" at the User name field.

Check whether the material is in the locked list.

If it is in the locked list, asked the user to log out before you delete it from the locked list.

Maintain Storage Location

MMSC - Collective entry of Storage Location for a material.

Insert new or delete un-used Storage Location.

Maintain whether the storage location was included or excluded from MRP run.

Block Storage Location from further posting

1. You can block the storage location of a material without affecting the rest of the location using the same material.
Create a Physical Inventory document for the storage location with transaction MI01

Select the Posting Block checkbox.
This would prevent transactions from occuring until you either post or delete the physical inventory document.
(There are no impact, unless you do a post difference for the physical inventory document.)

2. Another method is to rename the storage location name.

Go to transaction OX09
Edit -> Copy as (copy the original storage location to a new name, replacing the first character e.g. ZXXX)
Edit -> Delete (delete the original storage location)

Do the reverse if you want back the original storage location.

Accounting document number range for MM

Transaction OMW9

Document Type - Double click on desire transaction code to check the document type for number range.
(e.g. MR21 Document type - PR)

Financial accounting document type - Assign the document type to a number range and account type.
(e.g. PR - Account type allowed for posting will be MS)

Double click on the document type PR.
Assign an unique starting number range that was not used. e.g. 88
Choose the Account type for Material and G/L account (MS)
The rest of the fields are optional (you can leave it as blank)

SAP definitions for account type -

A - Assets
D - Customers
K - Vendors
M - Material
S - G/L accounts

Number ranges for financial accounting document type - Assign the number range to the running number range.

No. Year (till) From number To number Current number Ext (no tick internal or tick external)
88 9999 8800000000 8899999999 Track by SAP Blank

Accounting document will be generated if there are stocks during price change, if you don't have any stocks, no accounting document will be generated as there are no inventory to revaluate for price differences.

Valuation Class for Material Group

In 4.6x and 4.5b, you can assign valuation class to Material Group.

It is useful in the sense that user do not have to manually do an Account Assignments.

For stock items, valuation class cannot be changed whenever the stock on hand is not zero.

Valuation class are tied to a G/L account.

A change of valuation class means a change of G/L account.

In FI concept, you have to debit and credit to balance the G/L account. That is why your stock must be zero before the system allows you to changed the valuation class. If it is not zero, you have to either transfer it to another material or do a dummy issues. After changing the valuation class, do a reversal entries for the stocks which you have transfer out or you have done a dummy issues.

IMG - Material Management -> Purchasing -> Material Master -> Entry aids for items without a Material Master

G/L Accounts in MM Account Determination

The program RM07C030 check all the G/L account define in your Material Master valuation class.

Search is via Company code and Valuation area.

Compare fields status for movement types against General Ledger

Use SA38 then run RM07CUFA

Configuration Setting

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Config Setting In Batch Management

This will help you for config setting:

Logistics general - Batch Management

1.1. Specify Batch Level
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Specify batch level and activate batch status management Transaction OMCT

1.2. Batch Number - Activate Internal Number Assignment
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Number Assignment --> Activate internal batch number assignment Transaction OMCZ

1.3. Batch Creation - for Goods Movements
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Creation of new batches --> Define batch creation for goods movements Transaction

1.4. Characteristic Value Assignment -- Update Standard Characteristics
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Characteristic Value Assignment --> Update Standard Characteristics Transaction

1.5. Activate Batch Classification for Goods Movements in Inventory Management
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Characteristic Value Assignment --> Valuation for goods movements --> Activate Batch Classification for goods movements in Inventory Management Transaction OMCV

1.6. Batch Determination – Condition Table(Cross Client)
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Determination & Batch Check --> Condition Tables --> Define production order condition tables Transaction OPLB

1.7. Batch Determination – Condition Table(Cross Client)
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Determination & Batch Check --> Condition Tables --> Define SD condition Tables Transaction V/C7

1.8. Batch Determination – Access Sequence(Cross Client)
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Determination & Batch Check --> Access Sequences --> Define Production Order Access Sequences Transaction OPLF

1.9. Batch Determination – Access Sequence(Cross Client)
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Determination & Batch Check --> Access Sequences --> Define SD Access Sequences Transaction V/C2

1.10. Batch Determination – Strategy Types
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Determination & Batch Check --> Define Production Order Strategy Types Transaction OPLE

1.11. Batch Determination – Strategy Types
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Determination & Batch Check --> Define SD Strategy Types Transaction V/C1

1.12. Batch Determination – Batch Search Procedure
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Determination & Batch Check --> Define IM Search Procedure Transaction OMCY

1.13. Batch Determination – Batch Search Procedure
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Determination & Batch Check --> Define Production order Search Procedure Transaction OPLG

1.14. Batch Determination – Batch Search Procedure
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Determination & Batch Check --> Define SD Search Procedure Transaction V/C3

1.15. Batch Determination – Batch Search Procedure Allocation
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Determination & Batch Check --> Allocate IM search procedure/activate check Transaction OMCG

1.16. Batch Determination – Batch Search Procedure Allocation
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Determination & Batch Check --> Assign Search procedure to production order Transaction OPL8

1.17. Batch Determination – Batch Search Procedure Allocation(SD)
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Determination & Batch Check --> Allocate SD Search procedure Transaction V/C5

1.18. Batch Determination – Activate Automatic Batch Determination(SD)
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Determination & Batch Check --> Activate Automatic Batch Determination in SD -->For delivery item categories Transaction V/CL

1.19. Batch Determination – Batch Selection Class
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Determination & Batch Check --> Define Selection Classes Transaction CL01

1.20. Batch Determination – Sort Rule
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Batch Determination & Batch Check --> Define Sort Rules Transaction CU70

1.21. Batch Determination – Make Settings for Batch Where-used list
Menu Path Enterprise Structure--> Logistics General--> Batch Management --> Make Settings for Batch Where-used list Transaction OMBB

Batch Handling

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SAP Batch Handling

What is a batch no. of a materail? and where can we mention batch no for material? Can we maintain batch no in mm01 Tcode while creating material?

In simple terms SAP Batch Handling means an additional keys fields for users to identify the same materials.

For e.g. Normal Control : Plant + Material + Storage Location
Batch Hanlding : Plant + Material + Storage Location + Batch Number

The structure of the material master record allows you to manage stocks of a material by value at plant level or company-code level and by quantity down to storage-location level. Under certain conditions, you may need to make further subdivisions for a material and manage batches.

Certain materials' features cannot always be guaranteed to be exactly alike in production. For example, you cannot guarantee that a certain color will always have the same shade. Minor differences between production lots cannot be avoided. You need to be able to uniquely identify the individual production lots of the same material and manage them separately in inventory.

Materials that require such precise identification, for example pharmaceutical products, are identified and managed in stock not only according to material number, but also according to batch number.

With batch handling, you can manage not only production lots from in-house production, but also production lots from vendors as separate entities.

It is possible to supplement standard batch management with batch status management.

What Is a Material Handled in Batches?
Before you can manage batches of a material in stock, you must first specify in the material master record that the material is to be managed in batches for the specified plant. To do this, you must set the batch management requirement indicator in the material master record (for example, in the Purchasing view field MARA-XCHPF or Storage Location view field MARC-XCHPF).

Whether the material is managed in batches:
This indicator can be set while creating material.
MM01 -- General Plant data/storage 1 View -- Batch Management (check box)
(Check also Purchasing or Warehouse Mgmt 1 view).

Level of Batch Number Assignment
If a material is subject to management in batches, every quantity of that material must be assigned to a batch. Each batch of a material is identified by a unique batch number, under which it is managed. This number is either entered by the user (external number assignment) or assigned automatically by the system.

You can define number assignment for batches at various levels:

- Uniquely at client level for a material
- Uniquely at material level
- Uniquely at plant level

In the standard R/3 System, numbers are assigned to the individual materials at plant level.

For every batch, there are two types of data:

- General data on the batch (for example, shelf life expiry date, date of the last goods receipt), which is defined in the master batch. The master batch applies to all storage locations in which the batch is located. No stocks are managed at this level.
- Stock data, which is managed separately for every storage location in which the batch is located.

For example, if the batch C1 of a material is spread across two different storage locations, the stock quantity is tracked for each storage location.

Must the Batch Exist Before the First Goods Receipt?
Both the master batch and the stock data for the batch are created automatically during the first goods receipt. Thus, you do not need to create this data manually. However, if you want to define specific data for a batch, such as the shelf life expiration date, you have to manually maintain the batch data.

What Sorts of Batch Stocks Are There?
The following stocks are managed separately at batch level:
- Unrestricted-use stock
- Restricted-use stock
- Quality inspection stock
- Blocked stock
- Stock in transfer
- Blocked stock returns

Working with Materials Handled in Batches
When you enter goods movements for materials handled in batches, you must enter the batch number in addition to the material number. If you do not know the batch number, you can search for the batch using the required characteristics.

Mass Change Material Group

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Mass Change Material Group In Materials Master

How I can move several materials belonging to one Material Group to another Material Group?

1. SE16 - MARA table find all the material with OLD_material_group.

2. MM17 - select TABLE as MARA and FIELDS as MATKL (material group), press execute.

3. In tab "Data Records to be changed", copy all the materials you have selected in step 1. Press execute.

4. In NEW VALUES field enter NEW_material_group. Press 'Carry out a mass change' button.

5. Press Save.

6. Check in MARA table for materials with new material group.

Change Base UOM

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Change Base Unit of Measure

One raw material we assigned base unit of measure as OZ, later add alternate unit of measure as ML.

Now I wanted to change the base unit to ML and alternaet to OZ. For that I deleted component from the BOM. Related PO's, Prd ord and demand are closed. Deleted the alternate unit from purchasing and plant/stock (Area were we assign the alternate unit), then try to change it giving message as Unit of measure ML used as alternate unit. (In additinal data screen still the alternate unit and conversion available)

You can do the following procedure (after deleting the material in all concerened documents):

1. Delete the uom from Unit of issue field (General Plant Data / Storage 1) in MM if you have mentioned it there.

2. Go to additional data , use delete line tab and delete the conversion factor by keeping the cursor on that line.

3. Come to main data, now change the base unit of measure to the required one.

4. Then give the alternative unit of measure, system will ask for conversion factor.

5. Then save

Changing V.Types

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Changing the Material Valuation Types

Assuming you have defined split valuation types in the sap img, you must remove all stock for the current period and one previous period before you can create the material with different valuation types.

The best method is to wait until the last day of a period, and then perform a physical inventory adjustment to remove the stock.

Then on the first day of the next period you can set up the material accounting views for each split valuation type.

After the material valuation types are set up for the material, you can do an inventory adjustment to put the stock back in.

Make sure you notify your accounting inventory control departments as to the quantities and values you are taking out at
the end of the period.

Split Valuation

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SAP Split Valuation for Materials

The SAP R/3 System allows you to valuate stocks of a material either together or separately, that is, according to different valuation criteria. Split valuation is necessary if, for example:

1. Stock from in-house production has a different valuation price than externally procured stock.

2. Stock obtained from one manufacturer is valuated at a different price than stock obtained from another manufacturer.

3. Different batch stocks of a material have different valuation prices.

4. Value damaged and repair part differently from a new part.

To used split valuation, you have to activate it using 'OMW0'.

To change split material valuation once it has been set, you must

1. first post out all stocks (for example, to a cost center or with movement type 562)

2. then change the control parameters

3. if necessary, change the automatic account determination

4. finally post the stocks back in again

In split valuation, you can distinguish between partial stocks of a material according to certain criteria and valuate them separately.

The material stock is divided according to valuation category and valuation type.

The valuation category determines how the partial stocks are divided, that is, according to which criteria.

The valuation type describes the characteristics of the individual stocks.

With the function "Setting" you can determine:

which valuation categories exist in your company (global categories)
which valuation types exist in your company (global types)
which valuation types belong to which valuation category
which valuation categories exist in a valuation area (local categories)

Your entries are only relevant if you set split valuation as active in the function "Global settings".

In the standard SAP R/3 System, the following valuation categories are default settings :

B procurement type with the valuation types:

"EIGEN" for in-house production
"FREMD" for external procurement

H Origin

X automatic valuation (only for batch)

To select split valuation ('OMWC'), proceed as follows:

1. Determine the valuation categories and valuation types that are allowed for all valuation areas:

global valuation categories via menu "Goto --> Global Categories"
global valuation types via menu "Goto --> Global Types"

2. Allocate the valuation types to the valuation categories.

a) Select "Goto --> Global Categories".

b) Position the cursor on a valuation category and select
"Goto --> Global Categories --> Assignments --> 'Types->Category'".

c) Activate the valuation types you want.

3. Determine the local valuation categories for each valuation area.

a) Select "Goto --> Local definitions".

b) Position the cursor on a valuation area and select
"Goto --> Local Definitions --> Allocate Categoires->Org.units (button Cats->(OU)".

You obtain a list of the global valuation categories.

c) Activate the categories to be used in this valuation area.

The system creates the local valuation types based on the allocations under point 2.
Only now can you create a master record with split valuation.

Specifying Split Valuation by creating Material Subject to Split Valuation

1. Create a material master record, selecting the Accounting View 1.

2. Enter your data as required on the Accounting data screen, specifying a valuation category.
(If you can't find the valuation category field, it might be hidden, use OMSR to define the Field Groups.

Look for the field MBEW-BWTTY for Valuation category).

3. Be sure that the price control indicator is V for moving average price and enter a moving average price.

4. In the case of split valuation, you can create only one valuation header record with price control V because the individual stock values are cumulated, and this total value is written to the valuation header record. This is where the individual stocks of a material are managed cumulatively. To do this, fill in the Valuation category field on the accounting screen when you create the material master record and leave the Valuation type field blank.

5. Save your data and the system creates the valuation header record.

6. The initial screen appears.

7. Extend the material by creating new material master records from the Accounting view 1. For the first material, specify a valuation type in the Organizational Levels dialog box and enter the respective accounting data on the data screen. Proceed likewise for the other materials, distinguishing between them by valuation type. To do this, call up the material in creation mode again. Due to the fact that a valuation header record exists, the system requires you to enter a valuation type for the valuation category.

8. Repeat step seven for every valuation type planned.

You want to valuate the stock of material XYZ that you obtain from manufacturer A in Los Angeles at a different price than the stock you obtain from manufacturer B in Detroit. In this case, the valuation category is H for origin. Your valuation types can be LOS ANGELES and DETROIT.

If a material is subject to split valuation, every quantity (sub-stock) of this material must be assigned to a valuation type (for example, country of origin).

For every valuation type, there are two types of data in the system, as follows:

Valuation data (for example, valuation price, total stock quantity, total stock value), which is defined for every valuation type at valuation-area level and applies to all dependent storage locations.

Stock data, which, like batch data, is managed separately for each storage location. If a material that is subject to split valuation is also subject to management in batches, its stock data is not managed by valuation type, but rather by batch. Every batch is assigned to a valuation type.

The stock quantity, stock value, and valuation price for all valuation types are managed cumulatively at valuation-area level.

Must the Valuation Type Exist Before the First Goods Receipt?

You can post the goods receipt of material of a certain valuation type only if the valuation data for this valuation type already exists, because the system valuates the goods receipt at the price defined in the valuation data. On the other hand, the stock data for the valuation type is created automatically during the first goods receipt into the storage location, if this is defined in Customizing for Inventory Management.

Goods Movements with Materials Subject to Split Valuation

If you want to enter goods movements for materials subject to split valuation, you must enter the valuation type in addition to the material number.

Enter the valuation type in the Batch field for MB01.

In MIGO, there is a valuation type field in Detail data -> Material.

Price Control V or S

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Price Control V or S in material type

When is it useful to use the price control V or S in Material Master ?

Do I have to follow the SAP standard setting in the material type for the following material types:
- ROH(Raw materials) -> moving average price
- HALB(Semifinished products) -> standard price
- FERT(Finished products) -> standard price

In which case and why is useful to change these standard setting in material type?
What is difference between standard price and moving average price?
When and how to use it?

Standard price are used for products that do not fluctuated frequently. It is usually used for finished or semi finished products.

Moving average price are used mainly for raw materials that are purchased externally. The advantage of using moving average price for your raw materials is that your inventory costs will always reflect the current market cost.

SAP strongly recommends that you do not select price control V for semi-finished products and finished products, because doing so will very easily cause the calculation of unrealistic valuation prices.

SAP recommends:
Price control V for raw materials and trading goods; price control S for semi-finished products and products.

If you nevertheless select price control V, take care in the following situations:

Unrealistic prices occur if materials are produced and also retire during one period (that is, the inventory at the end of the period is smaller than the total of aquisitions from production orders) and if, in addition, several production orders belonging to a material were finished in this period, and the production order settlement calculates variances at the end of the period. Every single production order carries out an inventory coverage check and may therefore cause the moving average price to be changed.

However, the individual production orders do not check whether the inventory available at the end of the period has already been debited by another production order.

Example: on 20 workdays in the period, 1 piece of material xyz was produced for each day and delivered to the warehouse at a price of USD 1000. At the end of the period there is 1 piece at the warehouse.

Since an activity price of a participating cost center was higher than planned , every single production order calculates cost of goods manufactured of USD 1100 during the settlement. Every single one carries out a inventory coverage check and finds out that the variance can be posted completely to the inventory.

That is, the ending inventory of one piece is debited with USD 20 x 100 and it consequently receives a price of USD 3000.

1. A settlement is carried out although not all costs have yet been posted to the order. This can even result in a price of 0 for the delivered product.

2. No period check of the costs is carried out on the order, that is, costs from previous periods may be settled.

3. Settling orders is already possible in the 'Delivery completed' status.

Solution: Standard price for products together with possible manual price changes.
If you are required to valuate semi-finished and finished products with actual prices that correspond to the costs of the actual production, SAP recommends you use the function of the material ledger for this. Here, a periodic actual price is created that is calculated on a much more reliable basis than the moving average price.

As so-called price limiter quantity is used which makes sure that in the above example price differences are proportionally taken into account (95% of the total price differences) when valuating the 19 pieces withdrawn from material xyz which results in a periodic actual price of 1100 USD. In addition, it is possible as of Release 4.5 to even take into account the variances of the actual prices of the raw materials in the valuation of the semi-finished and finished products that are manufactured from it.

If we select std price for any type of material or mav and then make po, it will pick from material master or what?

The Purchase Info Record have the FIRST priority. When no po info record is found, the Purchase Order will pick the user LAST enter price. The PO module do not pick up any price from material master.

M.C in Difnt C.C

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Creation of same Material Code in Different Company Codes

Our requirement : To create one material code (eg., A123) with different material type (HALB & UNBW) in two different company's plants. We have created A123 material code with HALB in 1000 company's 1100 plant. While creating A123 material with UNBW material type in 2000 company's 2100 plant, system is taking default material type as HALB, as already created for 1000 company's 1100 plant.
This requirement is due to the Job work process (non-valuated material) in 2000 company.

The basic data (like Matl. no., description, UOM etc.) in material master are maintain at client level. We can not maintain the same at company code level. So in your case you have to maintain two seperate code for different companies, with different matl type.

But you can for the same material type to define, that in some valuation areas it has update by value and quantity, but in another valuation areas only by quantity. Maybe you don't have to have two material types:)

Detail and what are the settings are required in customization:

Tr.code OMS2

1)Select details of material type and on end of screen in part 'Quantity/Value update" select for Value update radiobutton "By Valuation Area"

2)After that on left side of screen select folder "Quantity/Value update" and set in which areas you need value update by setting indicator in column "Value update".

Block or Delete

2007-09-26T02:36:00.000+05:30

Block or Delete Any Material From Material Master

How can we block or delete any material from material master?

When engineering marks a finished goods material master for deletion, it does not prevent customer service from booking an order against it. However, MRP ignores it and would not suggest a planned order or a purchase requistion(for buy-outs).

Where in configuration can I block customer service from booking an order for deleted material master? Currently, there is a pop up window to tell the order entry personnel that the material master is marked for deletion but that person can still process the order.

We can obsolete a matl master at Sale Data 1 which will prevent order entry but very often, our document control or engineer forgets and head straight to marking an item for deletion and not archiving it after that.

The best way is to keep the materail status with deleted or blocked for puchase / sales and need to maintain in the materail master.

You cannot delete the material from material master until archiving but you can block that material for any procurement

Goto Basic data 1

X-plant matl status ------

01 Blocked for procment/whse
02 Blocked for task list/BOM
10 Blocked for MRP

Select any one.

Valid from ----------- Here you enter valid date from which the material should be blocked.

So from this your material will be blocked for any PR/PO/any transactions related to Procurement

Flag of Deletion

2007-09-26T02:35:00.001+05:30

Displaying Material Flag of Deletion

To list materials which are flagged for deletion, without any development work.

Go to MB52 which is basically a stock report.

In the "Settings" section, tick "Display Materials flagged for Deletion".

It will give you the stocks of materials flagged for deletion.

Delete s.location

2007-09-26T02:33:00.001+05:30

Delete storage location in material master

Assuming that you have create a Material master in Plant : P001 and Storage location : 0001 and 0002.

Later, you would like to delete storage location : 0002 in this Material master.

In MM06 Enter Material number, plant and storage location.

Press enter, and set the cross in front of storage location.

Next, you need to run archiving to get it physically out of the SAP system.

One to Two

2007-09-26T02:29:00.000+05:30

One Storage Location for Two Different Plant

Can one storage location be extended to two different plants?

Eg plant PPL01-- storage loc 1) sc01 2)sc02.

Can another plant PPL02 have any of the storage locations of PPL01.

You can duplicate a storage location identifier at different plants but each of those is a unique storage location. For example Plant = 0001 Storage location = S001 and Plant = 0002 Storage location = S001. Those two storage locations, both called S001, are totally separate unique storage locations. They just both happen to be named S001. Material is valued at the plant level therefore you cannot have a single storage location that spans two plants.

A storage location has to be unique for a specific plant only. It cannot be common to two plants.

You can use the same storage location number for two different plants and the system identifies them uniquely based on the plant/storage location combination.

e.g (Storage location 01 in Plant Mumbai) and (Storage location 01 in Plant Bangalore).

Just ask yourself a question:

Which plant will the material in a given storage location belong to when you take the inventory at plant level ?

If physically you are using the same warehouse or godown for two different plants, still I am sure you are maintaining separate books for the inventory of each plant. These separate books are separate storage location in the system assigned to each plant though physically they are same.

Configure the Storage Location:

You can configure same store location for two diiferent plants:

Display IMG----- >Enterprice structure---> Definition----->Maintain storage location

Enter Storage Location for Each Material:

In Transaction MMSC enter Material and Plant and click List extendable slocs only.

Then enter sloc and save.

NumberRange Intervals

2007-09-26T02:26:00.000+05:30

Control the Number Range Intervals for Material Master

You can define the Material Master Number Range in transaction MMNR.

Click the button Groups to Maintain the Material Type Grouping.

Below are those material type that have no number range groups.

To assign a group, in the not assigned group, select the Material Type you want to group.

Then tick the Group you want to assign and click the menu path Edit -> Assign Element Group.

From the same screen, if you want a new number range intervals, click Group -> Insert Group.

If you decided to used an external number range, goto transaction OMS2 and
tick the field External no. assignment w/o check.

You have two ways of assigning number range :

Internal number assignment

In this case, a number within the number range interval allowed is assigned by the SAP R/3 System.

External number assignment

Here, the user assigns a number within the number range interval allowed. You can define the intervals for external number assignment numerically and alphanumerically.

You can assign one or more material types to each group.

If you assign just one material type to a group, you can define both an internal and an external number range interval for the material type.

If you group together more than one material type, you can define an internal and an external number range interval here too. This allows several material types to have the same number range intervals.

Material in process

2007-09-26T02:20:00.000+05:30

Define whether the Material can be used at which business process

The materaial status is very useful if you want to block the material from being used
at a certain business process.

For example :-

You want to designate a material as a material to be discontinued. In the master record,
you give the material a status whose parameters have the following settings:

Parameters in transaction OMS4 (Double click the status line items for IMG Settings) :

Purchasing "B" = error message

MRP "A" = warning

Inventory Management " " = no message

If the material is used, this parameter assignment has the following effect:

Purchasing

You can perform no further purchasing function for the material; for example, you can
enter no further purchase order for the material.
In this instance, you are given a corresponding error message.

MRP

If you plan requirements for the material, you are warned that the material is one to
be discontinued.

Inventory Management

You can continue to withdraw the material from stores; no message is given.

Control Output Format

2007-09-26T02:14:00.000+05:30

Control the Output Format of your Material Numbers

In OMSL, you can define the following:

1. Input and output length of material numbers
(A material number can have a maximum of 18 characters).

2. Template for displaying or printing material numbers.
You indicate with an underscore any position in the material number that you do not want
to contain a template character.

3. Form in which material numbers are stored

4. Output with or without leading zeros

The settings are client independent.

Controlling the Fields

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Controlling the Fields in Material Master

Define whether a field is hidden or displayed, or whether an entry is mandatory or optional in material master maintenance by assigning the field to a field selection group in OMSR.

Each field selection group has a number between 1 and 240.

The values of the field selection groups have been preassigned as follows:

001-110 Material master for industry
111-120 Reserved for customers (except where the values are already in use)
121-150 Material master for industry
151-210 Material master for retail
211-240 Reserved for customers

Create and maintain field references (OMS9).

All the fields in the same fields group will have the same field selection option.
(hide, display, required entry, or optional entry)

You can see where a field reference is used by choosing Where-used list.

Define or change the field references as required (except for field references with the prefix SAP which must not be changed). New field references must begin with Y or Z.

Changing the Field Selection Options for a Field Selection Group

1. Specify the field selection group .
2. Select the field selection option (hide, display, required entry, or optional entry)
for each field reference as required.
3. Save.

Creating a Field Reference

1. Choose New entries.
2. Specify a field reference beginning with Y or Z.
3. Select the field selection option for each field selection group as required.
4. Save.

Changing a Field Reference

1. Double-click the relevant field reference.
2. Change the field selection option for each field selection group as required.
3. Save.

Define industry sectors and industry-sector-specific field selection in OMS3.

Define plant-specific field selection and screen selection in OMSA.

Allow Negative stocks

2007-09-26T01:04:00.000+05:30

SAP Inventory - Allow Negative stocks

In order to use negative stocks, you have to allow negative stock in customizing.

Only those materials for which negative stocks is activated in the material master, will be allowed to have negative stocks.

Customizing: transaction OMJ1 - Allowing Negative Stocks.

First level: Valuation area.

Choose for which valuation area you want to allow negative stocks and activate the flag.
Select the line of that valuation area and go to the plant level.

Second level: Plant.

When only one plant exists for that valuation area (this will always be the case in case the valuation area is defined as a plant), you see immediately a details screen with special stocks.
Choose the special stocks that may go negative. Next use F3 or the green arrow to return to the overview of the plants. Select the plant and go the the storage location level.

Third level: Storage Locations.

Select for which storage locations negative stock is allowed.

Save the whole lot.

Negative stock will now be allowed in the selected storage locations for all materials that have the negative stock indicator activated in the material master in the storage 2 view.

User default settings

2007-09-26T00:49:00.000+05:30

Maintain the user default settings when creating Material Master

Default values while creating Material Master.
Is it possible to define default values for certain fields, while creating the material master?

I know about the MRP profile and the forecast profile. I am looking for something similar for defaulting values for certain fields in the basic view.

You can define the following defaults for each user with transaction code OMT3U in 4.6c :

Default Industry sector (Industry only)

Where in the config can you default the Industry sector in MM01?

You can define that a particular industry sector is proposed whenever the user creates a material master record. However, this setting cannot be made for the material master for retail since retail is itself the industry sector.

You can hide the industry sector if you do not want the user to change it. SAP will take the default Industry sector you specify in the IMG.

Goto your user profile, own data (tranx SU3), click on [Parameters] tab, place MTP under parameter and your desired industry code, say M (for Mech/engr) in values and save. You should see your default in mm01.

A second possibility is in MM01 directly. In the menu Settings -> Industry (Default -> Industry Sector 4.6c) you can enter your default and can even flag a box that it should not be shown anymore.

In 4.6c, you have another choice, that is tcode OMT3U where you can Maintain the user settings for the default Industry
Sector.

So what you do depends on your preference and project cycle. If you have not yet gone live, and all of most of the materials is of a certain industry, then use the parameter option during user maintenance. If you have gone live, and then maintain in MM01 for a default.

Organizational levels (Industry and Retail)

You can define for a combination of user and screen sequence the organizational levels that are proposed whenever the user creates, changes, or displays a material master record, and the organizational levels and profiles that are proposed whenever the user creates a material master record.

Views that are preselected in the Select View(s) dialog box (Industry and Retail)

You can define for a combination of user and screen sequence that certain views appear as preselected in the Select View(s) dialog box.

Finally, if you create your material master record by referencing to the other material number, then several fields will be defaulted.

Relation bn Materials

2007-09-26T00:39:00.000+05:30

Maintain relation between Alternatives Materials

Ours is an auto industry & we have materials that are alternatives to other materials. These materials are perfect substitutes of each other & are known as alternatives. (the user can consume either of the materials or both). How to maintain the relation between the alternatives in SAP? How the MRP considers the quantity of each alternative for the MRP calculation?

You can have 2 options:

1) Create only one generic material in your system and while placing orders for different equivalent materials, mention the equivalent product name in the vendor info record Under vendor prwhich will get copied to Purchase order. Thus in your system you will have only one material.

2) If this is not suitable for you, than you can configure Manufacturer Part Number functionality.

Option No 1 . Pl take this scenario of a Chemical co.

Step 1 - Creation of Material in SAP

Genaric Material Vendor
(Silicon Surfactant)

Alt.Material 1 Vendor X
Alt.Material 2 Vendor Y
Alt.Material 3 Vendor Z

In this case, you will create material in SAP as Silicon Surfactant. This material will be used in BOM.

You will not create 3 different alt.materials like Material 1,2 and 3 in system.

Step 2 - Vendor Inforecord will have Vendor Material No i.e Material 1 etc.

Thus whenever you will print PO, PO will be printed with reference to your internal SAP material no i.e of Silicon Surfactant and will also have vendor material no. If you want only Vendor material to be printed then you have change the print format.

Thus for MRP, only 1 material will be cionsidered. Hope this is clear.

Option No2 -Manufacturer's Part Number

Step 1 -
In customisng under Lo General - Material Master - You have to create a MPN profile.

Step 2 -

Create normal material under material type ROH or Traded as required. Under purchasing tab , maintain MPN Profile,Manufacturer's part number(Vendor material number) and Manufacturer's code.(Vendor Code)
This is a material in which you will maintain stock, use in BOM etc. This is your internal material number. This number will not be used in the PO.

Step 3

Create a new material each for your alternative materials under Material type HERS. Under this you will create material which is supplied by your vendor.In this material you will link the internal material number as created in step 2 above.

Step 4

Create a PO by using material number created under material type HERS.

Step 5 - Do a GRN

MPN process works like this :
Order is created for HERS material but whenever you will do GR against this PO, stock and other reports will get updated under material code created in step 2 i.e normal material created under material type ROH or traded. Thus HERS material is used only for ordering purpose.

Difference bn client..

2007-09-25T23:44:00.000+05:30

Difference Between Client , Purchasing Org , Plant , Company code

What is the technical difference between Client , Purchasing Org , Plant , Company code?

Client : Unit within SAP system, self-contained, separate master data with independent set of tables. It represent corporate group.

Company Code : Smallest organisational unit of external account for which a complete, self-contained bookkeeping system can be replicated. eg, company within a corporate group.

Plant : An organisational unit within logistics, subdivides an enterprise from the viewpoint of production, procurement and materials planning.

Purchasing Org : Organisation within logistics which subdivides an enterprise according to purchasing requirements.

The procurement business process uses this organisational structure:

Client--->Company Code--->Plant--->Storage Location--->Purchasing Org/ Purchasing group

The standard procedure for creating a new plant in SAP:

SPRO -> Enterprise Structure -> Logistics - General -> Define, copy, delete, check plant

My SAP MM Certification Experience

2007-08-02T04:55:00.000+05:30

The guidelines:

Criteria to applying for a Certification without Prerequisites:

"All candidates registering for the SAP Certification Test must ensure that they have at least 2 years SAP implementation experience or have attended at least 15 days of relevant training in SAP. Proof of the above must be presented upon registration."

Proof can be given in the following ways:

1. A statement from the Project Manager on letterhead indicating participant's experience or training.
2. A resume
3. Certificate of Attendance from the various SAP courses attended.

Terms:

- Candidates must meet criteria mentioned
- Certification enrolment must accompany payment (credit card details preferred) before registration will be processed
- Once payment is received and confirmation provided, cancellation (i.e amendment to dates) is not permitted

Here is a link to check dates of certification:

http://www.sap.com/trainingcatalog -> type in tacert

To find out more about certification test types offered:

http://service.sap.com/certification

- Click on "SAP Consultant Certification"
- Select your relevant certification area

To register:

http://www.sap.com/asia/education/

- Select Registration
- Schedule of test only

To check out SAP Educational terms and conditions:

http://www.sap.com/asia/education/

Quick course search:

http://www.sap.com/trainingcatalog

The exam:

1) The examination questions are grouped together on topic-wise and evaluated accordingly. You can see at the beginning of the first book some plus marks against each topic. So don't treat the questions as 57 right answers out of 80. For example from "solution manager" two or three questions will be there but it is a topic i.e. if you answer all the questions out of it you will get 100% in that topic. All the topics are evaluated separately and the overall is taken as the final result. Check with your tutor or someone for more awareness.

2) Decimal marks will be there and marks will be given proportionately for the questions you attend. No negative marks.

3) For single answer type, there will be only radio buttons so that you can select only one.

4) For multiple answer (where more than one answer is correct) type, against each statement (answer) there will be two buttons for true and false so that you can (have to) select one.

5) Read and be familiar with the books as much as possible. Group discussions will be very much useful.

6) Once you attend th exam, you will find it easier than you expected.

Prepare well, be relaxed, best of luck.

The Do and Don't

Don't look for dumps as you will find none in whole world .Go by each word , sentences and get familiar of all the screen that comes while doing excercise.

SAP certification is not like microsfot or CISCO certifications where one can easily get the dumps.

You need to complete the chapter end exercises thoroughly at least you expect 7 - 10 questions in your certification exams .

Purchasing II books carries 30 questions in certification.

Read all the 4 books at least 4-6 times at least not less then that .

Don't concentrate much on week end exams.

Solution Manager you can leave ... only 1 - 2 questions out of that .

Don't loose patience as you will tend to feel that you don't know anything as exam dates get closer, feel free and relax and sleep at least for 10 hours before exam .

SAP Material Management MCQ

2007-08-02T04:44:00.000+05:30

Q.Which of the following stock types can be counted through Physical Inventory procedure?
(more than one answer can be correct)

A Unrestricted use stock.
B Block stock.
C Quality Inspection stock.
D Vendor consignment stock.
E In-transit stock.

Answer - A,B,C,D

Q.Which of the following can possibly influence the valuation price of a moving average priced material?
(more than one answer can be correct)

A Goods receipt for a purchase order.
B Goods Issue to a cost centre.
C Invoice verification against a purchase order.
D Stock transfer between two storage locations in the same plant.
E Transfer posting from unrestricted use stock to quality inspection.

Answer - A,C

Q.In the SAP system a user can operate in the following hierarchies.
(more than one answer can be correct)

A Service level.
B Application level.
C Main menu level.
D Month.
E Total stock value.

Answer - D, E

Q.Your planning department is using a Forecast Model for materials planning. It has been established that while demand for the particular material is projected to increase steadily as market share is increased, the fluctuating tourist demand will affect the overall requirements. Which forecast model will best address this requirement?
(Only one answer is correct)

A The Constant model.
B The Constant trend model.
C The Seasonal trend model.
D The Fluctuating trend model.
E The Seasonal model.

Answer - C

Q.In the SAP system, the reference document used in the purchasing cycle is the:
(Only one answer is correct)

A Purchase requisition.
B Info record.
C Source list.
D Purchase Order.
E None of the above.

Answer - D

True / False

Q.What purpose does invoice verification serve in materials management?

a It allows invoice that do not originate in materials procurement to be processed.
b Completes the materials procurement process
c Handles the payment
d Allows credit memos to be processed
e Handles the analyses of invoices.

Answer - B

Q.What are the tasks of invoice verification?

a Entering invoices and credit memos received.
b Checking the accuracy of invoices
c Executing the account posting resulting from invoice
d Updating open items and material prices
e Checking invoices that were blocked.

Answer - A,B,C,E

Q.What is the process of invoice verification?

a Purchase order, service or GR referenced for incoming invoice.
b Invoice items suggested by the system against referenced document
c Corresponding automatic account postings carried out.
d Payment proposal list for vendor generated.

Answer - A

Q.From where does the system pick the default quantity of an item when you post invoice receipt?
a Invoice
b Purchase order
c Purchase order history
d System settings
e Vendor master

Answer - C

Q.During invoice verification the system picks the rate at which tax is calculated from the vendor master record.

TRUE
FALSE

Answer - False .

General Test of SAP MM Knowledge

2007-08-02T04:32:00.000+05:30

1. What transaction key is used to post a valuated goods receipt for purchase order items not subject to account assignment?
a BSX
b WRX
c PRD
d KDM
e BSV

2. What is value string WA01 defined for?
a Goods receipt of standard and subcontracting purchase order items without account assignment concerning valuated material into stock.
b Deliveries without charge
c Goods issues
d Other goods receipts

3. Which value string is defined for Goods receipt of standard and subcontracting purchase order items without account assignment concerning valuated material into stock?
a WE01
b WA14
c WA01

4. Which valuation string is used for Delivery without charge for material subject to standard price control, with posting date in the previous period and the standard price in the posting period is different to the standard price in the current period?
a WE01
b WA14
c WA01

5. What is the key for account determination that enables a G/L account assignment differentiation for the offsetting entry for an inventory posting?
a Valuation grouping code
b Chart of accounts
c Account grouping
d Valuation class

6. For which transaction key in materials Management in the standard system is account grouping active?
a BSX
b WRX
c PRD
d GBB

7. For which transactions can you change the account grouping?
a Invoice verification
b Inventory Management.

8. The rules that you use to define if the configuration of automatic posting for a posting transaction depends on which of the influencing factors?
a Valuation Group code
b Material/material type
c Account grouping
d Chart of accounts
e Valuation class

9. From where do the transaction keys for delivery cost postings come?
a Purchasing calculation schema
b Value string

10. What does the system use for the account assignment category to determine the default account?
a Transaction key PRD
b Transaction key GBB
c Valuation group code
d Account grouping
e Valuation class

11. What are the characteristics of a Document type for Accounting documents?
a Two character alphanumeric code
b One number range per document
c Cannot assign authorization group
d Determines whether net posting is determined for the documents.
e Account types that may be used with the document type may be selected when entering documents.

12. What are the features of number assignment for accounting documents from MM?
a Configured for each company code
b Always linked to the fiscal year
c Numbers assigned without gaps
d Defines whether number assignment is external or internal
e The interval from which the number is assigned.

13. The rules that you use to define if the configuration of automatic posting for a posting transaction depends on which of the influencing factors?
a Valuation Group code
b Material/material type
c Account grouping
d Chart of accounts
e Valuation class

14. From where do the transaction keys for delivery cost postings come?
a Purchasing calculation schema
b Value string

15. What does the system use for the account assignment category to determine the default account?
a Transaction key PRD
b Transaction key GBB
c Valuation group code
d Account grouping
e Valuation class

16. What are the characteristics of a Document type for Accounting documents?
a Two character alphanumeric code
b One number range per document
c Cannot assign authorization group
d Determines whether net posting is determined for the documents.
e Account types that may be used with the document type may be selected when entering documents.

17. What are the features of number assignment for accounting documents from MM?
a Configured for each company code
b Always linked to the fiscal year
c Numbers assigned without gaps
d Defines whether number assignment is external or internal
e The interval from which the number is assigned.

1. a
2. c, d
3. a
4. b
5. c
6. d
7. b
8. a, c,e
9. a
10. b, d
11. a, b, d, e
12. a, c, d, e
13. a, c, e
14. a
15. b, c
16. a, b, d, e
17. a, c, d, e

MM Self Test Questions

2007-08-02T04:25:00.000+05:30

1. To view the most up to date planning data (available stock, orders, reservations, etc.) on a material, use the:

(more than one answer can be correct)
A Stock Overview report.
B List display of material and accounting documents.
C MRP list.
D Stock Requirement list.
E Standard Analysis for a material

2. A material forecast can be used by the following MRP types:
(Only one answer is correct)
A Manual Reorder point planning.
B Automatic reorder point planning.
C Forecast based planning.check
D Time phased planning.
E Storage location MRP

3. Materials planning can be set to automatically generate:
(more than one answer can be correct)
A Contracts.
B Purchase Requisitions.
C Purchase Orders.
D Planned Orders.
E Delivery Schedules.

4. The following are lot sizing rules available for SAP R/3:
(more than one answer can be correct)
A Fixed lot size.
B Replenish to maximum stock level.
C Weekly lot size.
D Daily lot size.
E Economic order quantity.

5. Which of the following apply to Purchase Orders?
(more than one answer can be correct)
A The vendor must be specified in the Purchase Order Header.
B All materials on a purchase order must be procured through the same purchasing group.
C All materials on a purchase order must be of the same material group.
D Discounts and surcharges can be maintained in the document header.
E Discounts and surcharges can be maintained at line item level.

6. Which of the following is an Account Assignment category?
(more than one answer can be correct)
A Material Group.
B Purchase Requisition.
C Sales Order.
D Release Code.
E G/L Account

7. Which of the following are Item Categories?
(more than one answer can be correct)
A Consignment.
B Service.
C Manufacturing.
D Cost Centre.
E Subcontracting.

8. Which of the following documents can be subject to release (approval) procedure?
(more than one answer can be correct)
A Planned Order.
B Purchase Requisition.
C Scheduling Agreement.
D Purchase Order.
E RFQ.

9. In Source lists the following can be sources of supply:
(more than one answer can be correct)
A Vendor.
B Contract.
C Scheduling Agreement.
D Quotation.
E Quota Arrangement.

10. Which of the following document types can appear in the purchase order history for a purchase order line item?
(more than one answer can be correct)
A Another purchase order.
B A goods receipt material document.
C A service entry sheet.
D An invoice.
E A release procedure.

1. Answer - D
2. Answer - C
3. Answer - B, E
4. Answer - A, B, C, D
5. Answer - A, D, E
6. Answer - C
7. Answer - A, B, E
8. Answer - B, C, D
9. Answer - A, B, C, E
10. Answer - B, C, D

Certification Sample Questions

2007-08-02T04:18:00.000+05:30

SAP MM Certification Sample Questions

Caution: more than one answer may be correct.
Please mark ALL correct answers.

Question:
You wish to procure a material using a purchase order. You wish to take delivery of the material at different times. A graduated discount scale exists for the material. How do you proceed if you wish to take advantage of the discount arrangement?

A Enter several order items with the same material number and different delivery dates
B Enter one order item with the material number and assign the material to different accounts
C Enter an order item with the material number and create a number of schedule lines
D Enter a number of purchase orders for the material and specify different delivery dates

Question:
In the purchase order on which the goods receipt is based, you defined a purchase order unit that differs from the purchase order unit. What is the significance of the purchase order price unit and what should you take note of in the case of a goods receipts?

A The purchase order price unit is stored in the material master record or purchasing info record and defines the unit of
measure in which the material is ordered.
B The system establishes the relationship between the purchase order price unit and the purchase order unit conversion
in the purchase order.
C At the time of goods receipt, both the quantity in the purchase order unit and the quantity in the purchase order price
unit have to be entered, however, the quantity in purchase order pice unit is calculated by the system. You have to
change it when the calculated quantity differs from reality.
D Both at the time of goods receipt and invoice verification, the material is valuated on the basis of the purchase order unit.

Question:
You enter a goods issue and receive the following message: "W: On , only 0.000 pieces are available". What do you conclude from this?

A. No stocks of the material exist anywhere in the entire plant. Therefore, nothing can be withdrawn.
B. Only the specified storage location does not contain any stocks of the material. Therefore, nothing can be withdrawn.
C. The material exist in the specified storage location on the current day, however, it is unavailable, because of other
reservations.
D. The message represents a warning which you can ignore by pressing the ENTER key.

Question:
Which of the following statements on procuring a material of the material type NLAG are correct?

A. The purchase order must be acount assigned.
B. The goods receipt must always be unvaluated.
C. when you enter an invoice, you can change the account assignement as long as the goods receipt was unvaluated.
D. When the material is for consumption, no document is ever created in Financial Acccounting.

Question:
Which of the following stock transfer are relevant to valuation?

A. Stock transfer from storage location to storage location in the same plant or company code.
B. Stock transfer from consignment stores of vendor XY to our unrestricted-use stock in storage location 0001.
C. Stock transfer from stock in quality inspection in storage location 001 to stock in quality inspection in storage
location 0002 in the same plant.
D. Stock transfer of a material from storage location 0001 from plant 0001 to plant 0002. The plants belong to
the same company, however the valuation areas are different (valuation level is plant).

Answers for SAP MM Certification Sample Question

How can you store long-term prices for services in the form of service conditions?

Answer 1 At the service level
Answer 2 At the service and plant level
Answer 3 At the service and vendor level
Answer 4 At the service, vendor and plant level

Answer 1 ,3 and 4 , Long term prices can be maintained at Service level, Service and Vendor level or Service, Vendor and Plant level.

What would you evaluate if you want to trace whether your purchase requisition items have been processed?

Answer 1 Material status
Answer 2 Processing status
Answer 3 Item Status

Answer No. 2: Processing status

MM (Matrial Management)

2007-06-17T03:41:00.000+05:30

Q: How can I extend all material to a new plant?
A: The SAP program - RMDATIND is used to create /update material master record.

Q: How can we delete materials permanently from Material master?
A: Use transaction MM70 - Material Master->Other->Reorganization->Material->Choose.
Build variant with selection range of material master records to be selected for deletion and maintain run parameters.
Execute.
Use transaction MM71 - Material Master-> other-> Re organizationn-->Material->ReorganizationBuild a second variantMaintain run parameters and execute.It is also important to remove the records manually from info record, POs, PRs, reservation etc for successful deletion of the material.

Q: SAP only provides moving average value for current, previous period, and previous year. SAP does not provide transactions/reports that will provide moving average value for a given date. How can I report moving average price for material number 10000000 at plant 0001 on July 4, 1998 .
A: Try any of these solutions:1. Change the updating level of the structure (S031) to "daily". In LIS the total value and the total stock are available. Divide value by the stock. It is possible to calculate this dynamically when the analysis is run and to display the result.2. Create your own structure in LIS and populate it by copying the Moving Average Price from the material master every time there is a transaction. You will have data on those days when there was a transaction.

Q: We have defined all the variables for the materials. However, when I attempt to use Material Matchcode object MAT1, I get the response "No possible entries found". Why?
A: Matchcode i.d. "B", "Material by bill of material" has a selection condition for field STLNR NE ' '. STLNR is the BOM number associated with a material in table MAST. Hence the message - "no possible entries..." pops up if there are no bills of materials associated with your material numbers.You get the matchcodes as long as the material referred by you has BOM number associated with it.

Q: The matchcode object selection is defaulted to matctcode ID "B". Iwould like to change to M " Material by Description" What is the solution?

A: Press the pull down arrow on the material number field and matchcode "B" is displayed, pressF5 double-click matchcode i.d. "M", then press F6 . This will set matchcode "M" as the default.

Q: We have one material master : X and the unit of measure is 'pcs' and two serial number : A,B For this material we make two Pos First PO calls material X , 1 pcs price 100 (will use serial number A) Second PO calls material X , 1 pcs price 250 (will use serial number B) Goods Receipt is done and by filling serial number for the fist PO with A and the second PO with B. We want to transfer material X serial number A to another plant and want the valuation of this material as 100. How we can do it ?

A: Use "split valuation". Stocks may be received into separate storage locations. Transfer stocks may be done from a storage location/plant to another storage location/plant.

Q: We want to change the calculation of Moving Average Price. We know that the same is in MBEW-VERPR and two transactions to consider - MRHR, MB01. Is there a transaction to change MAV or all the places it is needed?

A: Any Goods receipt or issue (in case of split valuated material) changes Moving Average price depending upon the valuation type which is used when posting the goods issue. You have to go through all the transactions involving those!For Example:Material X is using split valuation by origin:Malaysia : MAV 60 USD - total stock 100 unitsIndia: MAV 50 USD - total stock 200 unitsTotal stock 300 units MAV 53.33Here , goods issues will also affect the global MAV, despite not changing MAV from origin country.

Q: What is the use of configurable material.?

A: Configurable material is useful if you have a large number of combination of parts that go into a product. It means different permutations and combinations of the parts for same material. If you maintain a unique material code for each combination , you require a large number of material numbers.

KMAT may be used in such a case where you maintain just one generic product code.A super BOM is maintained for such a material consisting of all possible alternatives. A routing is also maintained consisting of all possible operations that could be used. Typically configurable material is used in Made To Order (MTO) environment. However frequently ordered configurations may be planned with a material variant which needs to have a material master record.

Thus Material variants may have stock and value. Depending upon characteristic values chosen at sales order entry Sales Order BOM is created. Routing operations are also chosen depending upon which BOM components are assigned to them