SAP MM (Materials Management) Record ~ Arjunkrishna J

SAP Business Process

SAP MM is the short form for SAP Material Management system. The roles of SAP MM in a
business process are as follows –
• A business process in SAP is termed as a “module”.
• SAP MM is a part of logistics functions and it helps in managing the procurement activities
of an organization.
• It supports all aspects of material management (planning, control, etc.).
• It is the backbone of logistics that incorporates modules such as Sales and Distribution,
Production Planning, Plant Maintenance, Project Systems, and Warehouse
Management.

Features of SAP MM
The features of an SAP MM system are as follows –
• SAP MM is one of the modules of SAP that deals with material management and inventory
management.
• Material Management as a process ensures no shortage of materials or any gaps in the
supply chain process of the organization. SAP MM speeds up the procurement and
material management activities, making the business run smoothly with complete time
and cost efficiency.
• It deals with managing the materials (products and/or services) and resources of an
organization with the aim of accelerating productivity and reducing costs. At the same
time, SAP MM is quite versatile to accommodate changes that are frequent in any
business environment.
• It deals with the Procurement Process, Master Data (Material & Vendor Master), Account
Determination & Valuation of Material, Inventory Management, Invoice Verification,
Material Requirement Planning, etc.
SAP MM Procurement Process
1. Basic Procurement
2. Special Procurement
1. Basic Procurement
Basic procurement is a process of acquiring goods or services in the right quantity, at the right
price, and at the right time. However it is critical to maintain a right balance between quantity,
price, and time.
Procurement Lifecycle – Requirement & Information Gathering ; Supplier Contact ; Background
Review ; Negotiation ; Order Fulfillment ; Consumption, Maintenance and Disposal ; Contract
Renewal

Basic Procurement Activities

Types of Basic Procurement
(I) Procurement for Stock vs Consumption
(II) External vs Internal Procurement
(I). Procurement for Stock vs Consumption
• Procurement for Stock − A stock material is a material that is kept in stock. These
materials are kept in stock once received from the vendor. The stock of this material
keeps on increasing or decreasing based on the amount of quantity received or issued.
To order a material for stock, the material must have a master record within the system.
• Procurement for Direct Consumption − When the procurement is for direct
consumption, i.e., it will be consumed as soon as it is received, the user should specify
the consumption purpose. To order a material for consumption, the material may have a
master record within the system.
(II). External vs Internal Procurement
• External procurement − It is the process of procuring goods or services from external
vendors. There are three basic forms of external procurement generally supported by the
purchasing component of the IT system.
1. One-time orders
2. Longer-term contracts with the subsequent issue of release orders
3. Longer-term scheduling agreements and delivery schedules
• Internal Procurement − Large corporate organizations may own multiple separate
businesses or companies. Internal Procurement is process of getting material and
services from among identical company. So, each of these companies maintains a
 complete bookkeeping system with separate Balance, Profit & Loss Statements so that
when trade occurs between them it will be recorded.

2. Special Procurement

Special stocks are the stocks that are managed differently, as these stocks do not belong to the
company. Special stocks are kept at some particular location. Special procurement and special
stock types are divided into the following categories –

• Consignment Stocks
• Third-party Processing
• Pipeline Handling
• Returnable Transport Stock
• Subcontracting
• Stock Transfer Using Stock Transport Order

Following process is to be followed for implementation:

• 1. Project Preparation
• 2. AS IS & TO BE
• 3. Business Blue Print
• 4. Realization Phase
• 5. Configuration
• 6. Unit Testing
• 7. Integration Testing and User acceptance
• 8. Cut over Process
• 9. User Training
• 10. User manual and configuration manual
• 11. Go Live & Post Go-Live Support

ORGANIZATIONAL STRUCTURE
SAP MM – SAP Enterprise Structure

• Define Company – 9119

Transaction code: – “OX15“
Navigation: – SPRO – SAP Reference IMG – Enterprise Structure – Definition – Financial
Accounting – Define Company.

• Define Company Code – AS91

Transaction code: – OX02
Navigation: – SPRO – IMG – Enterprise Structure – Definition – Financial Accounting – Edit
Copy, Delete, Check company code

• Assign Company Code to Company

Transaction code : – OX16
Navigation: – SPRO – IMG – Enterprise Structure – Assignment – Financial Accounting –
Assign company code to company

• Define Plant - ASPL

Transaction code: – OX10
Navigation: – SPRO > IMG > Enterprise Structure > Definition > Logistics – General –
Define, copy, delete, check plant.

• Assign Plant to Company Code

Transaction code: – OX18
Navigation: SPRO > IMG > Enterprise Structure > Assignment > Logistics – General >
Assign plant – company code.

• Maintain Storage Locations – DARM, DASG, DAFG

Transaction code: – OX09
Menu path: – SPRO > IMG > Enterprise Structure > Definition > Material management >
Maintain Storage Location.

• Maintain Purchase Organization - ASPO

Transaction code: – OX08
Navigation: SPRO > IMG > Enterprise Structure > Definition > Material Management >
Purchase Group.

• Create Purchasing groups - ASP

Transaction code: – OME4
Navigation: SPRO > SAP Customizing Implementation Guide > Enterprise Structure >
Definition > Materials Management > Maintain Purchase Organization

• Assign Purchasing Organization to Company Code

Transaction code: – OX01
Navigation: SPRO > IMG > Enterprise Structure > Assignment > Material Management >
Assign purchase organization to company code.
• Assign Purchase Organization to Plant
Transaction code: – OX17
Navigation: SPRO > IMG > Enterprise Structure > Assignment > Material Management >
Assign Purchasing organization to Plant.

• Assign Standard Purchase Organization to Plant

Transaction code: –
Navigation: SPRO > IMG > Enterprise Structure > Assignment > Material Management >
Assign Standard Purchasing organization to Plant.

• Define Business Place

Transaction code: –
Navigation: SPRO > IMG > Cross-Application Components > General Application
Functions > Business Place > Define Business Place

• Activate Material Ledger for Valuation Area

Transaction code: – OMX1
Navigation: SPRO ⇒ Controlling ⇒ Product Cost Controlling ⇒ Actual Costing/Material
Ledger ⇒ Activate Valuation Areas for Material Ledger

• Create Material Ledger Type – ASML

Transaction code: – OMX2
Navigation: SPRO ⇒ Controlling ⇒ Product Cost Controlling ⇒ Actual Costing/Material
Ledger ⇒ Assign Currency Types & Define Material Ledger Types

• Assign Material Ledger Types to Valuation Area

Transaction code: – OMX3
Navigation: SPRO ⇒ Controlling ⇒ Product Cost Controlling ⇒ Actual Costing/Material
Ledger ⇒ Assign Material Ledger Types to Valuation Area

• Define Productive Start

Transaction code: – CKMSTART
Navigation: SAP MENU ⇒ Accounting ⇒ Controlling ⇒ Product Cost Controlling ⇒ Actual
Costing ⇒ Material Ledger ⇒ Environment ⇒ Production Startup ⇒ CKMSTART (Set
Valuation areas as Productive)

• Define MRP Controller – 911

Transaction code: – SPRO
Navigation: SPRO ⇒ IMG ⇒ Production ⇒ MRP ⇒ Master Data ⇒ Define MRP Controller

• Define Valuation Classes – RMVC, SFVC, FGVC

Transaction code: – SPRO
Navigation: SPRO ⇒ IMG ⇒ Materials Management ⇒ Valuation and account assignment
⇒ Account determination ⇒ Account determination without wizard ⇒ Define valuation
class.
SAP MM – Master Data
Master data − Data that is created centrally, and is valid for all applications. It remains constant
over time but we need to update it on a regular basis.

SAP Master Data is of the following two types −

1. Material Master Data
2. Vendor Master Data

1. Material Master Data

• Attributes of Material Types – ZSRM, ZASF, ZART

Transaction code: – OMS2
Navigation: SPRO ⇒ IMG ⇒ Logistics General ⇒ Material Master ⇒ Basic Settings ⇒
Material Types ⇒ Define Attributes of Material Types

• Define Material Group – ASMG

Transaction code: – OMSF
Navigation: SPRO ⇒ IMG ⇒ Logistics General ⇒ Material Master ⇒ Settings key for Fields
> Define Material groups

• Define Number Range

Transaction code: – MMNR
Navigation: SPRO ⇒ IMG ⇒ Logistic General ⇒ Material Master ⇒ Basic Settings ⇒
Material Types ⇒ Define Number Range for Each material Type
Number range serial no: 23
From: 000000000000993201
To: 000000000000999988

• Maintain Company code for MM

Transaction code: – OMSY
Navigation: SPRO > IMG > Logistics – General > Material Master > Basic settings >
Maintain company code for material management.

• Create Material
Transaction code: – MM01
Navigation: SPRO ⇒ IMG ⇒ Logistics ⇒ Materials Management ⇒ Material Master ⇒
Material ⇒ Create Material

Material 000000000000993207 created – Raw Material

Material 000000000000993209 created – Semifinished Material
Material 000000000000993211 created – Finished Goods

2. Vendor Master Data

• Vendor Account Group – AAG1

Transaction code: – OBD3
Navigation: SPRO ⇒IMG ⇒ Logistic General ⇒ Business Partner ⇒ Vendors ⇒ Control ⇒
Define Account group and field selection(vendor)
 • Define Number Range – AS
Transaction code: – XDN1
Navigation: SPRO ⇒ IMG ⇒ Logistic General ⇒ Business Partner ⇒ Vendors ⇒ Control ⇒
Define Number Range for Vendor master record

• Assign Number Range

Transaction code: – XDN1
Navigation: SPRO ⇒ IMG ⇒ Logistic General ⇒ Business Partner ⇒ Vendors ⇒ Control ⇒
Define Number Range for Vendor master record

• Define Number Assignment for Direction BP to Vendor

Transaction code: – XDN1
Navigation: SPRO⇒IMG⇒Cross-Application Components⇒Master Data Synchronization
⇒ Customer / Vendor Integration ⇒ Business Partner Settings ⇒ Settings for Vendor
Integration ⇒ Field Assignment for Vendor Integration ⇒ Assign Keys ⇒ Define Number
Assignment for Direction BP to Vendor

• Creation of Vendor Master Data – BP No.9999992000

Transaction code: – XK01
Navigation: SAP Menu ⇒ Logistics ⇒ Material Management ⇒ Purchasing ⇒ Master Data
⇒ Vendor ⇒ Central ⇒ Create
Vendor Number: 9119000000
1. FLVN00
2. FLVN01
3. Partner Function: SPRO⇒ MM ⇒ Purchasing ⇒ Partner Determination ⇒ partner
roles ⇒ Permissible partner roles per account group

SAP MM – Purchase Info Record

Purchasing info record stores information on material and vendor, supplying that material. It is
maintained at the plant level or at the purchasing organization level.
Four procurement types, which are as follows –
• Standard − Standard info record has information on standard orders (orders include
details of vendor and material). This info record will include vendors price for supplying
the particular material.
• Subcontracting − Subcontracting info record has information on subcontract orders.
This info record will include price for assembling the raw material that is supplied by the
ordering party.
• Pipeline − Pipeline info record has information on material that is provided by vendor
through pipes. For Example: like water,electricity.
• Consignment − Consignment info record has information on material that is kept at
ordering party premises. This info record contains vendors price that is to be paid for
withdrawing material from consignment stock.

Transaction code: – ME11

Navigation: SAP Menu ⇒ Logistics ⇒ Material Management ⇒ Purchasing ⇒ Master Data
⇒ Info Record ⇒ Create
Purchasing info record 5300002431 created
SAP MM – Source Determination / List
• Source list includes a list of possible sources of supply for a material over a given
framework of time.
• Source list specifies the time period of ordering a particular material from a given
vendor.
• Source list can be copied from one plant to another plant.

Source list can be created by the following two ways –

• Automatically
• Manually
Automatic Creation of Source List
Transaction code: – MM02
Manual Creation of Source List
Transaction code: – ME01
Navigation: SAP Menu ⇒ Logistics ⇒ Material Management ⇒ Purchasing ⇒ Master Data
⇒ Source List ⇒ Maintain
SAP MM – P2P Cycle
The important steps in a P2P cycle are as follows −
• Purchase Requisition
• Request For Quotation (RFQ)
• Creating Purchase Order
• Posting Goods Receipt
• Posting Invoice
Purchase Requisition
A purchase requisition is a request that is made to the purchasing organization to procure a
certain list of materials. It is an internal document and remains within the organization.
Purchase requisition needs approval from the purchasing organization. If a purchase
requisition has already been approved, then it can be modified only to a limited extent.
Purchase requisition can be created for the following procurement types −
• Standard − Getting finished material from vendor.
• Subcontracting − Providing raw material to vendor and getting finished material.
• Consignment − Procuring material that is kept in company’s premises and paying to
vendor for that.
• Stock transfer − Getting material from within the organization.
• External service − Getting services like maintenance from third party vendor.

Transaction code: – ME51N

Navigation: SAP Menu ⇒ Logistics ⇒ Materials Management ⇒ Purchasing ⇒ Purchasing
Requisition ⇒ Create
Purchase requisition number 0010000796 created
Fill in all the required details such as name of the material, quantity, delivery date, material
group, and plant. Click on Save. A new Purchase Requisition will be created. After creating a
purchase requisition, we need to send our requirements to the vendor. It is done through a
document that is known as the purchase order. A purchase order can be directly created
from a purchase requisition.

Request for Quotation (RFQ)

Vendor selection is an important process in the procurement cycle. Once requirements are
gathered, we start looking for possible suppliers who can fulfill the requirements at the best
possible price. So, a request is made to the vendors to submit their quotations indicating the
price of the material along with their terms and conditions. This request is known as the
request for quotation (RFQ). Listed below are the key points to note about a request for
quotation −
• Request for quotation is a form of invitation that is sent to the vendors to submit a
quotation indicating their pricing and terms and conditions.
• It contains details about goods or services, quantity, date of delivery, and date of bid on
which it is to be submitted.
• Quotation is a reply by a vendor in response to a request for quotation.
• An RFQ can be created by the following two ways –
• Tcode: ME41
• Navigation: SAP Menu ⇒ Logistics ⇒ Materials Management ⇒ Purchasing ⇒
RFQ/Quotation ⇒ Request for Quotation ⇒ Create
1. Manually
Fill in all the required details such as type of RFQ (if standard, then AN), language,
date of RFQ, purchasing organization, and group. Provide the name of the
material, quantity of material,material group, and quotation deadline date.
Provide the quantity and delivery date for the material. Provide the vendor address
(street number, city, country, pin code) to which you are addressing the RFQ. Click
on Save. A new Request for Quotation will be created.
 2. Automatically from Purchase Requisition
Automatically from PR - On the home screen of RFQ, select Ref. to PReq tab
Enter the requisition number for which you want to create an RFQ. Click on Save.
A new Request for Quotation will be created with reference to Purchase
Requisition.
Request for Quotation created under the number 4500003167

Create Purchase Order

Transaction code: – ME21N
Navigation: SAP Menu ⇒ Logistics ⇒ Materials Management ⇒ Purchasing ⇒ Purchase Order
⇒ Create ⇒ Vendor/ Supplying Plant Known
Standard PO created under the number 4500003168

Fill in all the necessary details such as name of the vendor, purchasing organization,
purchasing group, company code, and details of the material, for example, material number,
price, currency, and plant. Fill in all the necessary details under Item. Click on Save. A new
Purchase Order will be created.
Goods Receipt
Transaction code: – MIGO
Navigation: SAP Menu ⇒ Logistics ⇒ Materials Management ⇒ Inventory Management ⇒
Goods Movement ⇒ Goods Movement (MIGO)
Material document 4900003439 posted

Goods Receipt Invoice

Transaction code: – MIRO
Navigation: SAP Menu ⇒ Logistics ⇒ Materials Management ⇒ Logistic Invoice Verification
⇒ Document Entry ⇒ Enter Invoice
Document no. 5105600274 created

Fill in all the necessary details such as invoice posting date, amount that is paid to the vendor
along with the quantity for which the amount is paid. Click on Save. Invoice is now posted for
the goods receipt.
SAP MM – Inventory Management
• Post goods issue
• Stock transfer and Transfer posting
SAP FI – Configurations
• Define Business Area – ASBA
• Maintain Fiscal Year – AS
• Assign Company code to Fiscal year
• Define Variants for Open Posting Periods – ASPV
• Open and Close Posting Periods
• Assign Posting Period Variant to Company Code
• Define Field Status Variant – ASDA
• Assign Company Code to Field Status Variant
• Define Tolerance Group for Employees – ASGE
• Assign Users to Tolerance Group
• Chart of Accounts - ASCA
• Assign Company Code to Chart of Accounts
• Create G/L Account group – ASAG
• Define Retained Earnings Account – 20000 (Liability 1st number)
• Create G/L Account for Retained Earnings Account
• Define Account Groups with Screen Layout (Vendors) – AAG1
• Create Number Ranges for Vendor Accounts – S5
• Assign Number Ranges to Vendor Account Group
• Create Sundry Creditors Account
• Controlling Area – ASCA
• Hierarchy – 9119
• Cost Centre – ASCC
• Profit Centre – ASDP
ERRORS:
1. Error message
internal error in FORM/FUNCTION ckms_buffer_write in position 19 with RC 0
Solution:
The solution is use tcode omsy to check the column ABp of the company ASPL.
2. Error Message
Material 000000000000993207 not included in source list despite source list requirement
Solution:
Don’t use the automatic creation of source list (i.e) checking the source list box using MM02.
Instead maintain source list and while creating purchase requisition, check the source
determination box.
3. Error Message
Maintain tolerance limits for tolerance key PE (CoCode AS91)
Solution:
4. Error Message
Materials of requisition 10000796 item 00010 alr. ordered in full
Solution: Changed kg in PO
5. Close period error – T-Code: MMPV
6. Error Message
Account determination for entry ASCA GBB ____ BSA 7900 not possible
Solution: T-Code : OBYC
7. Error Message
Not possible to determine any components
Solution: T-Code : SE38 | Enter - CS_BOM_PRODVER_MIGRATION and click Execute | Enter the
Material and select Run in Actual Mode | Select the line and press Approve. Now go back to PO
and the error will be gone.
8. Error Message
Account assignment mandatory for material 000000000000993207 (enter acc. ass. cat.)
Solution: Check value update for your plant and material type in OMS2.
9. Error Message
Error reading material ledger header record Message no. C+065
Solution: OMX1, OMX2, OMX3 & CKMSTART
 SUBCONTRACTING PROCUREMENT
Process Flow:

Creation of Material:

Material 000000000000993212 created

Bill of Materials (BOM):
Purchase Info Record:

Purchasing info record 5300002519 ASPO L ASPL created

Purchase Requisition:
 Purchase requisition number 0010000816 created
Goods Receipt:

SEMI FINISHED – Material document 4900003710 posted

Purchase Order:

Standard PO created under the number 4500003338

Transfer Posting:
 Transfer Posting - Material document 4900003711 posted
Goods Receipt Final Product:

Final Finished - Material document 4900003715 posted

Post Vendor Invoice:
 Document no. 5105600279 created
CONSIGNMENT PROCUREMENT
Process Flow:

Purchase Info Record:

 Purchasing info record 5300002431 ASPO K ASPL created

Purchase Requisition:
 Purchase requisition number 0010000817 created
Purchase Order:

Standard PO created under the number 4500003363

Goods Receipt:
 Material document 4900003761 posted
Stock Overview:

Transfer Posting:

Material document 4900003770 posted

Stock Overview:
 PIPELINE PROCUREMENT
Process Flow:

Creation of Material:
 Material DIESEL created
Purchase Info Record:

Purchasing info record 5300002543 ASPO P ASPL created

Goods Issue:

Material document 4900003786 posted

 STOCK TRANSFER
• Create a 2nd Plant for the same Company Code.
• Assign the Plant to Company Code
• Create a Sales Organization
• Assign Sales Org to Company Code
• Assign Division to Sales Org
• Define Distribution Channel
• Assign Distribution Channel to Sales Org
• Assign Shipping data to Plant
SPRO→ IMG→ Material management→ Purchasing→ Purchase order→ Setup stock
transfer order→ Define shipping data for plants
• Maintain Storage Locations – ASTR, ASTS, ASTF
• Create the same material for the plant ASPT
• Create a PO - Standard PO created under the number 4500003394
•

FAQ
Screen record & Automation:
Step – 1: SHDB
Step – 2: New recording
Step – 3: Enter the T-Code to record
Step – 4: Prepare excel file
Step – 5: Enter the customized new t-code of the screen record and upload the excel file.
Step – 6: Enter Foreground or Background run
T-Codes:
1. SM04 – To view logon users details
2. SHDB – To Screen record
3. SE93 – To create a custom t-code
4.
Tables:
1. MARA – Material general data
2. MARC – Material purchasing data (plant data)
3. MARD – Material storage data
4. MBEW – Material accounting data
5. MVKE – Material sales data
6. MAKT – Material description