mySAP Materials Management

Overview of Materials Management

BASIC DATA
Material Special stock Batch Vendor/one-time customer Purchasing info record Service specifications Workflow Optical archive Texts Mail Communication Classification

PURCHASING
Purchase requisition

SD PP PM QM FI AM CO PS

Third-party order Requirements Service / spare parts Inspection lot G/L accounts Cash management and forecast Fixed assets Cost center / Budget Project

RFQ/Quotation

Material/service Price comparisons Price comparison list Purchase orders Outline agreements Scheduling agreements

Purchasing

INVENTORY MANAGEMENT

Goods receipt/issue Transfer posting Batch Management Physical inventory Storage bins Check and post Price update Subsequent Adjustment

Documents
Conditions

INVOICE VERIFICATION

Purchasing information system Vendor evaluation

MRP Direct requisition Release procedures

Basic Data: Material Master

Centralized/ decentralized maintenance

Views Multilingual texts Units of measure Prices

Material master

Work scheduling Financial accounting Classification MRP Production resources Costing Engineering/design Warehouse Forecast Quality management Warehouse management Sales Stock (plant/warehouse)

Organizational units Material types

Basic Data: Vendor Master

General data Account number Description/address Vendor sub-range Supply region

Purchasing data
Purchasing organization Service data Partner roles Purchasing group Purchase order currency

Accounting data

Reconciliation account Terms of payment Bank details

Plant Service data Partner roles Purchasing group Purchase order currency

Transaction figures

Requirements Planning

MRP procedure

Consumption-driven MRP - manual/automatic reorder point - random MRP Requirement-driven MRP - with or without BOM explosion

Planning runs

Regenerative planning Net change Net change in short-term planning horizon Single-stage single-segment planning
Display Change Conversion

Planned order management

Reporting

Current requirement/stock situation Planned order overview Planning file

Purchasing: Purchase Requisition

Release procedure Source determination

OK
Outline agreement

Fixed vendor

Source list Quota arrangement

assign and process Change

Purch. req. Change document

Piece % DM

Generate
Purchase order

Conditions

Release

RFQ

Work list

Requirements planning

Direct entry

Purchase Requisition

Release Procedure for Purchase Requisition

Release conditions

Release strategy Value Material group Account assignment category Plant

Release indicator

Number of release points Sequence of release points Release indicator

Released/blocked
for purchase order Released/blocked for requests for quotation Fixed/unfixed for MRP

Purchasing: Request for Quotation/Quotation

RFQ One-time vendor

!
Vendor B

Quotation price comparison list

Manual/automatic data update

Statistics Certificates Reminder Quantities Texts Conditions

Purch. info record Vendor A RFQ

Purch. order

?
Stock material Consumable material Service

Collective request for quotation

Rejection
Purch. order

BANF Purch. req

Purchasing: Ordering

Reference and copy function

Stock material
Consumable material

Contract
Purch. order
Purch. info rec.

Service

Account assignment - Single - Multiple

Material provided

Req. for quot.

?
Generation from purchase requisition processing

PURCHASE ORDER - Normal - Subcontracting - Consignment - Third-party - Stock transfer - Text

Statistics
Direct entry

Purchase order history

Purchase Order

Purchasing: Contract/Scheduling Agreement

Contract Quantity contract Value contract Consignment contract Central contract Supplement Sched. agreement

Monitoring: degree of fulfillment

Contract release order

Schedule update

manual from MRP Supplement

Contract

Purchasing: Centrally Agreed Contract

Prices and conditions Plant 1 Plant 2 Plant 3

Centrally agreed contract Steel Inc. Material A 500,000t

Partner roles Vendor 1 Vendor 2 Vendor 3 Vendor 4

Contract release order

Metal Processing Ltd.

Steel inc. Vendor 1 Faridabad Vendor 2 Baroda

Plant 1 Noida

Plant 2 Calcutta Plant 3 Gujarat

Vendor 3 Indore
Vendor 4 Bellary

Purchasing: Vendor Evaluation

Overall rating of vendor

Price Price level Price behavior Other

Quality
Inspec. of goods rec.
Shopfloor complaint

Delivery On-time delivery Quantity reliability Shipping instructs. Other

Service
Technology Other

Quality audit Other

Vendor Evaluation

Comprehensive Stock Transfer

Corporate group
Company 1 (G) Company 2 (F) Company 3 (I)

Plant 1 Baroda

Plant 2 Mumbai
Vendor 4711 = plant 4 Purchase order

Plant 3 Lucknow

Plant 4 Chennai

Delivery Invoice

SD functionality: Availability check, delivery, picking, transport, pricing, invoicing Delivery plant = vendor

Inventory Management: Overview

Consumption statistics Quantity and values

Dec 95

Goods receipt

Stock

Movement in-/outward Stock transfer Transfer post. ...

Goods receipt/ issue slip

Inventory
Storage location stock

Warehouse mgmt Storage bins

Special stock

Analysis/ inventory controlling

Stock Overview

Inventory Management: Goods Receipt

Goods receipt

Material PP CO PS

Stock quantity Consumption statistics Point of consumption Cost center Order

Purch. order

Warehouse mgmnt.: transport req. Purchasing data Purchase order item Purchase order history

Goods receipt blocked stock Delivery costs

Goods receipt posting

Mail to orderer Goods rec. slip Material document Accounting document

G/L account Goods/invoice rec. ctrl. acc. Balance sheet account Consumption account

FI

Goods Receipt

Inventory Management: Material Movements

External purchase order

Diverse inward movement

Internal purchase order

Vendor

Production

Inspec. sample Blocked storage Transfer posting Quality inspection Stock transfer Special warehouses: - Consignment - Empties - Prov. of material by customers

Scrapping Physical inventory difference

Consumption: cost center, production order, project, sales order, asset Withdrawal via bills of material / reservation lists

Integration with Quality Management

Freely usable stock Quality inspec.

Inspection stock in another storage location laboratory

Goods receipt Goods receipt blocked stock

Inventory Management: Analyses

Analyses Material movement lists

Stock overviews
Stocks per material Avail. of plant stock Requirement lists Stock lists

Stock controlling
ABC analyses Stock values Range of coverage Slow-moving item Inventory turnover LIS Dead stock Parameter controlling

Valuation: Balance Sheet Valuation Procedure

Moving Average LIFO FIFO

Physical Inventory: Procedure

Periodic inventory
6789

Permanent inventory Cycle counting (periodic inventory)

Inspect sample inventory

Invoice Verification: Variants

Logistics invoice verification

Material

Material document

Quantity Deadline Invoice parking

Financial accounting FI Inspection Account determination Posting FI

doc.

Inspection and posting

Doc. 3725

Doc. 0721

Automatic invoice verification

Inventory management
Purchase order

Invoice verification Incoming invoice

Financial accounting Open items Creditors

FI

Purchase
Goods receipt

with reference to purchase order with reference to delivery

note / GR

Invoice verification without reference

Receipt

Invoice Verification

Invoice Verification: Highlights

Tolerance inspection / action report

Simulation function

Automatic price fixing and updating

Account assignment transfer from purchase order Posting gross / posting net Down payment clearing

Tool amortization
Consignment consumption billing GR / invoice receipt account maintenance Release function for blocked invoices

Material debit / credit

External Services Management: Areas of Use

Building Planning Approval Interior work

Repairs Inspection

Cleaning buildings Data entry Secretarial services Marketing activities Graphics

External Services Management: Flow

Entry of quotation

Vendor selection

Ordering / monitoring

Bid invitation

Service entry/ purchase

Construction of service specifications

Determination of requirements

Invoice verification

User department PM Plant Maintenance PS Project System

External Services

Information Systems

CHECK Early warning system

Customer
Mr White Ms Jones Mr Davis

Sales
100,000 300,000 150,000 Key figures Sales and distribution Production

Logistics information system Inventory management Plant maintenance Purchasing Quality management

ABC analysis
Stock value

Materials (%)

Customers

Forecasting and planning Early warning system

Drill-down
Buyer Order value

Order value

Sales

Automatic updating Integration in Open Information Warehouse Analysis of tools

Classification
Materials (%)

Mr Smith 150,000 Ms Baker Buyer: Ms Baker 70,000 Mr Brown Materials Order value 80,000 4711 4712 4713 150,000 70,000 80,000

Sales (%)