SAP MM - Pits Stop Points

SAP Architecture R/3 Layer (Three Tier Layer)

Basic Procurement Cycle

Special Procurement Types

1) Stock Transfer with Stock Transfer Order
2) Subcontracting
3) Vendor Consignment
Organizational Structure

Client: The and organizational t

records andclient is a unit within
independent set of tables. From
corporate group

Company Code: The company

accounting for which a complete
replicated. Company Code has it

Application
Purchase Requistion
Outline Agreement
Frame Work Requisition
RFQ
Quotation
Purchase Order
Framework Order/Blanket PO/Limit PO
Automatic PO Configuration

Doc Category
B
B
B
A
A
F
F

he and organizational terms and in terms of data, with separate master

ndclient is a unit within an SAP system that is self-contained both in legal an
ent set of tables. From a business viewpoint, the client represents a
e group

y Code: The company code is the smallest organizational unit of external

ng for which a complete, self-contained bookkeeping system can be
d. Company Code has its own balance sheets and profit and loss statements.

Doc Type
NB
RV
FO
AN
AN
NB
FO

T-codes
ME51N/ME51, 52 and 53
ME51N/ME51, 52 and 53
ME51N/ME51, 52 and 53
ME41,ME42 and ME43
ME41,ME42 and ME43
ME21N/ME21, 22N and 23N
ME21N/ME21, 22N and 23N

Tables
EBAN,EBKN
EBAN,EBKN
EBAN,EBKN
EKKO/EKPO
EKKO/EKPO
EKKO/EKPO
EKKO/EKPO

General/Master Data
Transaction
EC01
MK05

Use
To view the Organisation Enterprise
Block Vendor

Purchasing
Transaction
Me2L
MIR4
Me9f

Use
Purchasing Docs per Vendor
Display Invoice Document
Print/Transmit PO

Goods Receipt
Transaction
oms2

Use
Material Type

Invoice Verification
Transaction

Use

What is the difference between Material Type and Material Group in SAP?

Material Group is a key that is used to group together several materials or services with the same
attributes. Each Material or Service is assigned to a particular material group. Material Group is
used for reporting purpose and you can restrict the scope of analyses and search material master
records via search helps. It does not have any other controlling features unlike Material Type which
has a number of controlling features. Materials with the same basic attributes are grouped together
and assigned to a material type. It has many controlling features and controls the type of number
assignment (internal or external), permitted number range intervals, which screens are displayed
and in which order, which procurement type is permitted(external purchasing or in-house
production), inventory management requirement such as quantity and value updating, Automatic
Account Determination i.e. which accounts are posted for goods receipt and issues, etc.

1) Stock Transport Order

Release Strategy
Release Strategy is of 2 Types
1) W/o Classification
2) With Classification

Characteristics : It is a Parameters which defines the the logic require to release or to give approval fo
Release Class : Is a Master class in which we define all the Characterisctics
Release Group

Release Codes
Release Indicator
Release Strategy

Sources of Supply
Sources of Supply supply determines the allocation of Sources/Vendor to the Purchase Requisition/PO
Some of the Basic transaction used in Sources of Supply are
ME56 : Assign Source of Supply to Requisition : This Trans only assign Vendor to PR.
ME57 : Assign and Process Purchase Requisition: PO is directly Created
ME58 : Ordering Assigned Purchase Requisition : In this we create PO for PR whose Vendor is already
ME59 : Automatic PO Creation
1) Tick Automatic PO creation in Material Master
2) Tick Automatic PO creation in Vendor Master
3) Maintain PIR
4) Maintain Source List
Process
Create PR in ME51n
convert PR to PO automatically using ME59N
The Priority alloted in Sources of Suuply are as shown below
Quota Arrangement
Source List
Outline Agreement
Info Record

Inventory Management
IM Deals with movement of Materials within the organisation which leads to Quantity Update and may
When Goods movement takes place it leads to Material Document and may lead to 1 Acc Doc, more th
1.Gr
a. Planned b. Unplanned
a. Planned Rec
GR ref to PO
GR ref to Prod Order
b. Unplanned Rec
GR others

Gr w/o PO
GR W/o Prod Order
GR from Own Stock

Number of Parameters/Char required for Approval are limited mainly 4 : PR Value, Material Group, Plan
You have major control on the Doc and number of Parameters/Char for giving approval for a Purc Doc

es the the logic require to release or to give approval for the document. Eg. PR Value and PR Plant
efine all the Characterisctics
Eg: P1, P2

Eg: C1, C2, C3

Eg: B,R

Prerequisite
Release Status
Classification
Simulation

Assignment/ Hierarchy of Release

G1
G1
Allocation of Characteristics
Checking if everything is fine

tion of Sources/Vendor to the Purchase Requisition/PO in the purchasing Evironment automatically on the basis

of Supply are
This Trans only assign Vendor to PR.
n: PO is directly Created
: In this we create PO for PR whose Vendor is already assigned

MM01
XK01
ME11
ME01

shown below

e organisation which leads to Quantity Update and may lead to Value Update
Material Document and may lead to 1 Acc Doc, more then 1 Acc Doc or no Acc Doc.
2.GI (From Own stock or Consignment)
a. Planned b. Unplanned
a. Planned Issues
GI wrt Prod Order
GI wrt Sales Order
b. Unplanned Issues
GI as sample

3. Reservation
a. Rec Reser b. Issue Reser
a. Reservation List
b. Picklist

GI to Cost Center
Gi to Scrap

Value, Material Group, Plant and Acc Assignment Category

ng approval for a Purc Doc

and PR Plant

C1
C2

B
R

automatically on the basis of Various Records maintained eg. Info Record, Source List, Outline Agreement or Qu

4. Transfer Posting
a. Phy Trs b. Logi Trs
a. Physical Transfer
P2P Mov (1 & 2 Step
STL2STL Mov (1 & 2 Step
CC2CC Mov (1 & 2 Step
b. Logical Transfer

5. Physical Inventory
a. Periodic
b. cyclic
c.sampling
d. Continous

Stock type to Stock Type

Material to Material

Concept
The process begins in the receiving plant with the creation of a stock transfer order in
purchasing. A goods issue is then entered in the issuing plant with reference to this quantity is
transferred from stock in transit to storage location stock for the plant.being posted to the stock
transfer order in the receiving plant. As this is done, the stock transfer order. The quantity is
first of all written off in a special stock, the Stock in transit of the receiving plant. The process
finishes with the goods issue

ned eg. Info Record, Source List, Outline Agreement or Quota Arrangement.

Benefits/Advantages

Configuration Required

SD-MM-PP Scenarios
No. Topics
1 Condition Technique and O/P Determination
2 VC
3 MTO
4 MTS
5 Subcontracting
6 STO
7 Interconnect
8 Third-Party Sales - W and W/o Shipping Notifications
9 Free Goods Determination
10 Account Determination

Lead
SD
SD-MM-PP
MM-PP
MM-PP
MM
SD-MM
SD
SD
SD
SD