MATERIALS MANAGEMENT

MM-FI Integration
 Materials Management

 Topics:

 Materials Planning
 Purchasing
 Materials Planning
 Materials planning

Independent
Independent
Requirements
Requirements
MRP
MRP Run
Run
Non-Stock
Non-StockItem/
Item/
Service
Service

Plant
PlantMaintenance
MaintenanceOrder
Order
 Purchasing (External Procurement)
Purchasing
 Procurement Cycle
 Types of Procurement
 External Procurement (Purchasing)
 Procurement of raw materials, operating supplies, trading goods/merchandise or services from
an external supplier for the organizational units within a firm that need such items.

 Internal Procurement (In-house Production)

 The product is produced in this location. The product is not procured via purchase requisition
or inbound delivery.
 External Procurement for stock
Purchasing
document(s)

Item:
no account Warehouse
assignment
Goods
category
receipt

Goods
issue

Material
Production

Vendor
 External Procurement for consumption
Purchasing
document(s)

Item:
with account
assignment
category

Goods
receipt Production

Vendor

Material
SR
SR
 Purchasing documents
Purchase
requisition
RFQ

Purchase requisition RFQ

?

Quotation Quotation Purch.order

Quotation A ? B Purchase order

31. 1.
Contract
Scheduling
Release order agreement
 Structure of a purchasing document
Purchasing
document ocument
ocument
Document header
General
General data
data
statistics
statistics
Messages
Messages
Conditions
Conditions
Additional
Item 1 data for item 1
General data Purchase
Conditions order history
Texts

...
Schedule line

Item 2 Additional
data for item 2

...

...
Item category
Purchasing
document A B C

Item Account assign.

category category
Account assignment type
Purchasing
document
A B C

Item Acct.assign.
type type
Purchase requisition
Department Materials Requirement Planning (MRP)

Requisition Requisition

Purchasing
Purchase requisition processing
MRP Direct entry

Purchase requisition

Determine source of supply Release

Vendor
o.k.

Allocate and process

RFQ Purchase
order Release
Release
order
order
?
Request for quotation/ quotation
RFQ 1 RFQ 2
Requirements known.
Procure from which ?
source?

Vendor 1 Vendor 2

Quotation 1 Quotation 2

Price comparison list

Purchase Rejection
order
 Entering an RFQ

11 22

Item list
Vendor 1 Inquiry 1

Vendor 2 Inquiry 2

?
11
Processing Quotations: Example
Enter price and pricing conditions
Vendor A Vendor B Vendor C
Quotation for Quotation for Quotation for
RFQ 1 RFQ 2 RFQ 3
Item 10 Item 10 Item 10
Gross price: 400/t Gross price: 400/t Gross price: 400/t
Discount: $50 Surcharge: 50% Fixed costs: $40
22
Compare quotations using price comparison list
Steel 2 t 350/t 480/t 520/t 450/t

Price

Quotation 1 Quotation 2 Quotation 3 Mean value

quotation
33
Create info record or reject quotation
Vendor A Vendor C, B
- Order - - Rejection-
Mat. Qty Price Thank you for your
offer. Unfortunately,
we cannot place an
Steel 2t 350/t order at this time .....
 Processing Purchase Orders
Purchase RFQ Reference Contract
requisition document

Order history Pcs

Pcs
Vendor
Purchase %
%
order
Conditions
Conditions

One-time vendor SR
SR
Info record
MM-FI Integration
Valuation Classes
Click on valuation class
 OBYC CONFIGURATION

Few MM transactions and its accounting integration:-

Movement type for goods receipt against purchase order is 101
The accounting entry posted is as follows:-
 Inventory of Raw Material Debit

 GR/IR (Goods Receipt/Invoice Receipt) Credit

 For Inventory of Raw material account You need to update the

BSX transaction key with the GL code Inventory of Raw material
account

 For the GR/IR account you need to update the WRX transaction key
with the GL code GR/IR account.
 When Raw material is issued to the production order
Movement type used for posting the above transaction is 261 – Goods
issue to order
The accounting entry generated in the system is:-
 Raw material consumption Debit

 Inventory of Raw Material Credit

The transaction Key GBB needs to be updated. GBB key is used for
various offsetting posting entries. Within GBB transaction there are
various account grouping (general modification)

In this case you need to update general modification VBR with the
Raw Material consumption account
 When Initial stock is uploaded for Raw Material
Movement type used for posting – 561 (Init ial stock upload)
Accounting entry generated is as follows:-

 Inventory of Raw Material Debit

 Stock data takeover account Credit

The transaction key GBB needs to be updated. General modification

Key
BSA needs to be updated with the GL code Stock data takeover
account
If you noticed lot of account modifiers in transaction key GBB are used
in
various movement type. It is difficult to remember the standard account
modifiers. In that case we can also use the Simulation mode. This helps
us
in identifying what are the general modification (account modifiers)
used in
GBB:-
Use the following path:-
IMG Materials Management Valuation and Account
Assignment
Account Determination Account Determination Without Wizard
Configure Automatic Postings or Transaction code: OMWB