Project Abay

User Training Manual

For
Module: Procure to Pay (PTP)
Process: Material Master Creation

June 2021
ABOUT THIS MANUAL
This manual provides information and specific instructions on all the MM views with the
implication on vital processes in standard SAP system. You will see how each of the views is
created, its obligatory data, optional fields, and how its creation reflects the system. This tutorial
is 8000 words+.

The manual is intended to serve both as a training manual and a reference.

Typographic Conventions
The standard used in this handbook is American English. The following typographic
conventions are also used.

Type Style Description

Tahoma Tahoma

Icons Used
The following icons are used.

Icon Meaning
Caution

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Material Master Creation User Manual

REVISION HISTORY
Document Revision History

Version Date(DD/ Author Name Reviewed / Nature of Changes

MM/YYYY) Approved By

V1.0 09/03/2021 Melisew Tilahun N/A

V2.0 01/07/2021 Melisew Tilahun N/A

Revision History iii @2021 All rights reserved.

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Material Master Creation User Manual

OVERVIEW
 The material master contains information on all the materials that a company procures or
produces, stores, and sells. It is the company's central source for retrieving material-
specific data. This information is stored in individual material master records.
 A material master record contains data that is valid for the whole company: the material
number, the material description, the assigned material group, the base unit of measure,
the weight, and so on.

Target Audience
This manual shall primarily be used by;

 Procurement to Pay module – Material Master Creation function

 Management and staff members in all other departments who may carry out Material
Master Creation related activities.

Pre-Requisites

Required Knowledge
 Working knowledge of Microsoft Office and Internet browsers
 Familiarity with navigating of SAP

Recommended Knowledge
Working knowledge of the Material Master business processes

Objectives
Using this manual, you will be able to understand:
 How to Create material master.
 Industry sector
 Material Types and definations.
 Plant, Storage Location,
 Material data screens/views.

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Table of Contents
ABOUT THIS MANUAL...................................................................................................................................................i
Typographic Conventions.................................................................................................................................i
Icons Used.............................................................................................................................................................i
REVISION HISTORY.....................................................................................................................................................ii
OVERVIEW.................................................................................................................................................................... 3
Target Audience.................................................................................................................................................3
Pre-Requisites.....................................................................................................................................................3
Required Knowledge..........................................................................................................................................3
Recommended Knowledge................................................................................................................................3
Objectives.............................................................................................................................................................3
Table of Contents.........................................................................................................................................................4
I. TERMS, ACRONYMS, ABBREVIATIONS..............................................................................................................5
II. INTRODUCTION - MATERIAL MASTER..........................................................................................................6
III. LOGIN TO SAP S/4 HANA SYSTEM.................................................................................................................7
IV. STEPS TO CREATE MATERIAL MASTER........................................................................................................8
1. Accessing Master Data through Transaction code or SAP Menu Path...........................................................8
2. Material Number, Industry Sector and Material type...........................................................................................10
Material Type Definition.....................................................................................................................................12
3. Material Master Data Screens and fields.........................................................................................................14
3.1. Plant, Storage Location, Sales Data:..................................................................................................15
V. MATERIAL MASTER TABLES, REPORTS AND OTHER T- CODES..................................................................27

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I. TERMS, ACRONYMS, ABBREVIATIONS

Term / Acronym / Abbreviation Definition/ Description
MMC Material Master Creation.
MM Material Management.
EEP Ethiopian Electric Power.
SAP System Application Program.
HANA High Performance Analytic Appliance.
SAP S/4HANA SAP Business Suite 4 SAP HANA.
FERT EEP_Finished Products.
FHMI EEP_Production Resources/Tools.
HALB EEP_Semi-Finished Products.
HAWA EEP_Trading Goods.
ABF EEP_Scrap/Waste/By Product materials.
NLAG EEP_non-stock material.
ERSA EEP_Spare Parts materials.
ROH EEP_raw materials
ABF EEP_Scrap/Waste/By Product materials.
UNBW EEP_non-valuated materials.
VERP EEP_packaging materials.
ZBLM EEP_Const. and Bundling materials.
CORPC Corporate Profit center.

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II. INTRODUCTION - MATERIAL MASTER.

The material master contains information on all the materials either Stock or non-stock that a
company procures or produces, stores, and sells. It is the company's central source for
retrieving material-specific data. This information is stored in individual material master records.

Source Google.

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III. LOGIN TO SAP S/4 HANA SYSTEM

First make sure you have SAP application installed and EEP S/4 HANA server configuration is
done.

Then insert Client, Username and password credentials.

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IV. STEPS TO CREATE MATERIAL MASTER

1. Accessing Master Data through Transaction code or SAP Menu
Path
A. Insert MM01 on the comand field and Press Enter Key

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B. Or go to SAP menu and Go Through menu paths - (SAP EASY ACCESS-> Logistics->
Material Management-> Material Master-> Material->Create General-> MM01 –
Immediately) and press ENTER. Both ways are elustrated as shwon below.

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2. Material Number, Industry Sector and Material type

2.1. Material number - is set automatic no need to insert. Based on the material type
you select, SAP will decide the number authomaticaly.
2.2. Industry sector – is used to identify what type of sector is your organization. Like a
material type, its material master can be controled through this type of sector In EEP
sector is E- Electrical Power Industry

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2.3. Material Type: material types are the materials which are having similar attributes
categorized together and assigned to a material type. It is a classification of allowed
material into material types based on attributes. In material master, material type
controls the following functions
 Number range assignments i.e. External or Internally.
 Field selections i.e. which fields are mandatory, optional, hide and display.
 Quantity and values basis
 External procurement or internal procurement
 Which value classes are to be allowed

For EEP Material numbering has been set automatic based on the material type we choose.
Every material type has its own predefine number range as shown below.

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No. Material Type Type description Num grp Number From Number To
1 FERT EEP Finished Product 10 1000000000 1499999999
2 ZBLM EEP Const. &Building Materials 15 1500000000 1599999999
3 HALB EEP Semi Finished 20 2000000000 2499999999
4 HAWA EEP Trading Goods 25 2500000000 2999999999
5 ABF EEP Scrap/Waste/By Product 30 3000000000 3799999999
6 UNBW EEP Non-valuated materials) 38 3800000000 3999999999
7 NLAG EEP Non Stock items 40 4000000000 4999999999
8 HIBE EEP Operating Supplies(Chemical and Consumables) 50 5000000000 5999999999
9 ERSA EEP Spare Parts 60 6000000000 6999999999
10 VERP EEP Packaging Materials Admin Material 70 7000000000 7999999999
11 FHMI EEP Produ'n Resource/Tool 80 8000000000 8999999999
12 DIEN EEP Service Materials 90 9000000000 9699999999
13 ROH EEP Raw Materials 97 9700000000 9999999999

Material Type Definition

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 (semi-finished products)

Semi-finished 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.

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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.)

ERSA (Spare Parts materials)

Spare parts are used to replace defective parts. They may be kept in stock. A material master
record of this material type can contain purchasing data, but not sales data.
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.

ABF (Scrap/Waste/By Product materials)

Scrap/Waste materials are materials that are scraped damaged or west material or by products.

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.

ZBLM (Const.&Budling materials)

Construction and Building materials are materials used for building constructions like Cements,
Blokets, surface finishing materials, Condit’s, water tubes, …This material type has been optout
from A material master record of this material type is managed both on a quantity basis and by
value.
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3. Material Master Data Screens and fields

In EEP Master Data business requires below views.

Basic Data 1, Purchasing, Sales Data (For Nonstock), MRP1,2 & 3, General
Plant Data/Storage 2, Quality Management and accounting 1 are the most
common selectable Views going to use by EEP.

Note: Based on the material type some views will different.

For our Material type choice -HIBE – EEP Operating Supplies Above screens are
enough to map our material master. After choosing the views, Press ENTER key.

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3.1. Plant, Storage Location, Sales Data:

As per our selection insert Plant = EEPC – EEP Central Plant and Stor.Loc =
100 -Kotebe Main Store.

As per EEP Warehouse and Material controllers’ input, we have come to agreement and
configure below list of plants along with storage location in the system. So here you need to
choose in which plant and Storage location is the material going to be created.

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In EEP, we have single Plant with multiple storage location scenario. below is the list of storage
locations created in EEPC plant.

Plant Storage Location

Plant
Plant Name Stor. loc. Code Storage Location(Sloc.)Name
Code

100 EEP Kotebe Main Store

101 Addis Abeba Region TSO
102 Lagahar Mini store
104 Repi Waste Energy PP
105 GRAND ETH REIN DAM
106 GRAND ETH.REIN.PRJ
107 ALUTO LANGANO Geothermal PP
108 ALUTO GEOTHERMAL project
109 GILGEL GIBE I PP
110 GILGEL GIBE II PP
111 GILGEL GIBE III PP
112 North EAST Region TSO
113 North Region TSO
114 North West Region TSO
115 Dire Dawa Diesel PP
116 EASTERN region TSO
EEPC EEP CENTERAL PLANT 117 West Region TSO
118 South WEST Region TSO
119 FINCHA AMERTINSH
120 FINCHA PP
121 ASHEGODA WIND PP
122 ADAMA I WIND POWER
123 ADAMA II WIND POWER
124 MELKAWAKENA HEP
125 KOKA PP
126 AWASHA II &III
127 BELES PP
128 TIS ABAY
129 TEKEZE HYDRO POWER
130 Central Reg. TSO
131 South Reg. TSO
132 JIGJIGA TSO
132 NEKEMTIE TSO

Example: Plant: EEPC- EEP Central Warehouse Plant and Storage location 100-
Kotebe Main Store and press enter

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After pressing enter key, you are witnessing that the material number (1) is there automatically.
Now you need to insert

The Description of the material (2) - Color Print , Base unit of measure (3) - EA – each (should
be standard unit of measure), Material group(4) - 136 – Stationary materials, Old Material
number (5)- 01 20 102 – is the number assigned on your previous system(AS-400 or any other)
and X-Plant Mat. Status (6)- Blank - is the setting used to block purchasing incase of the master
data has wrongly created.

As per EEP warehouse and material controllers’ input, we have come to an agreement and
configured below list of material groups (this grouping list can be increased based on the need
of EEP in the future) in the system. So here you need to choose in which plant is going to be
created.
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Material group/Service Group Lists

Mat Group code Material Group Description Mat Group code Material Group Description
100 Belts 128 Paint
101 Building Materials 129 Perishable
102 Cables 130 Poles
103 Cars 131 Radio Field Eq
104 Chemicals 132 Rental Charges
105 Construction materials 133 Repair Materials
106 Electrical materials 134 Safety Materials
107 Equipment 135 Sales materials
108 Equipment Spares 136 Sanitary Materials
109 Fabrics 137 Simulator Spare Part
110 Fire/F Veh. Spares 138 Solar Power Items
111 Fuel, Oil & Grease
139 Solar Power spares
112 General Supplies
140 Stationary
113 Generator
141 Stationery materials
114 Generator Spares
142 Steel, Angles
115 Geo Thermal Materials
116 Geo Thermal spares 143 Tier, Rubber & Seals
117 House Keeping Materials 144 Tools
118 Hydro Electric materials 145 Transformers
119 IT Materials 146 Transmission items
120 Loan & Surpasses materials 147 Transmission Spare parts
121 Lubricant and Gas oil 148 Trucks
122 Machinery items 149 Uniform Materials
123 Machinery Spares 150 Utility
124 Measuring Items 151 Vehicle Spares
125 Medical Items 152 Vehicles
126 Non -Stock materials 153 Water & Sewerage items
127 Offi ce furniture’s and Items 154 Wind Power Items

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Service/Dept. Groups
Mat Group code Material Group Description
Staff _Dept Staff Department
Project_Dept Project Department
Mod_Dept Modernization Department
Untility Untility Department
GO_Dept Generation Op.Dept
TSO_Dept Trans.Subs.Op.Dept
EEP_FI Finance Department
LBI_Dept Logist.Bank&Insurance
WH_Dept Warehouse Dept

Press enter key. As per our selection the next view is Purchasing.
In Purchasing view Insert
- Order Unit (1) PAC – Pack. If the Base unit of measure is differed from Order
unit, SAP requires standard conversion between the two units we choose. For our
example, (2) 1 PAC has 12 Each Printers and press enter.
- Purchase group (3) – Buyer - GDS

After inserting all details of purchasing View, Press enter key and go to next view that is MRP view

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MRP view.

In EEP there will not be MRP requirement, so choose ND – No Planning. If there is a material that
requires planning you can choose PD or other lists as per your requirement.

After inserting ND in MRP 1 view press enter key and go to MRP 3 view. In MRP 3 there is Availability
check that you must give the check requirement. Make it KP- No check

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After inserting all required inputs in MRP3 view Press Enter key and go to Plant data/Storage 2
and insert Profit center CORPC – Corporate Common profit center. This may vary from material
to material. As Materials for Generation Operation will have GNO profit center, TSO will have
TSO profit center….

Profit Center
- A profit center is an organizational unit in accounting that reflects a management-oriented
structure for the purpose of Internal Control and Reporting Requirements.
- Profit Centers can be defined at the level of Product Categories, Locations or combination
of both
- Profit Center Groups are used to combine different Product Categories/Locations that
pertain to the same Product Groups/Geographies or the combination of both.

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For us, we select CORPC – corporate Profit center – can be define by finance or inventory teams
After Inserting dedicated Profit center press enter Key and go to Quality Management view.

Quality Managment view.

Click Inspection Setup then click inspection types

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Choose 01- Goods Receipt Insp.for Purchase Oder. As Inspection is required at the time of Goods receipt.

Tick Pedefined Insp. type and active

Press enter key

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Defult inspection settings is enough for EEP inspection. No need to tick/untick here just press enter key
and go to Accounting view

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Accounting 1 View inputs

Valuation class – 3906 - Operating supplies, Per Unit Price – 1 color print price is 12000, and Price
control V

Before pressing Enter key, please go to Additional data view and add additional unit of measure for the
material and add its conversion to each other

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On Aditional data, You can insert many units of measure by including the coversion rate againest
the given measurement unites. So insert all necessary inputs and and save the Material.

After Entering all required fileds Press Enter Key. Below messaage will be displayed

Material created as

Then you can update and Display the master data on MM02 and MM03 respectively.

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V. MATERIAL MASTER TABLES, REPORTS AND OTHER T- CODES

a. Other T-codes
MM02 - Modify Material Master created in MM01. You can modify master data
using this code. SAP will restrict editable fields based on the history of the
material. Like is the Material has in process PR’s, PO’s or other settings that
restrict modify.
MM03 - Display Material Master
b. Report T-codes
MMBE – Material stock overview – You can get details of the stock based on
the Plant storage location and movement types used for the material or group of
the material or other selection criteria SAP functioning.
MM60 – List of Materials created
c. Tables
MATDOC - Table used to retrieve material details.

############# The END Thank you! #################

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