Unit 6

Materials Management (MM)

- Master Data -

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 Materials Management (MM)

Business Process Integration

Master
Data
M
M M
M

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 SAP Enterprise System

Master Data
• Master data is relatively fixed
• Before making the master data configurations,
you must have completely defined the
organizational structures

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 Materials Management (MM) Integration

Master Data
General
• Business rules and supportive information are
stored in master data records
• Each master data record is unique in name or
number
• Internal or external number ranges are possible
• Usually created or converted (legacy system) in
the beginning
• Maintained by numerous organizations

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 Materials Management (MM) Integration

Master Data
General (continued)
• Vendor master records are maintained by
both accounts payable (A/P) and purchasing
• Material master records are maintained by
purchasing, sales, production, accounting, etc.
• Purchasing information records are
maintained primarily by purchasing

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 Master Data in SAP MM
• Material Master
• Vendor Master
• Purchase Info Record
• Source List
• Quota Arrangement
• Batch Master
• Service Master
• Condition Master
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Material Master

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 Material Master
• Key Points
– Main source of material specific data.
– Include information on the materials that a
company can procure, or produce, or store or sell.
– Since there are different departments in an
enterprise and each department works on some
specific material. So they will enter different
information regarding their material. So each user
department has its own view of material master
record.
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 Data Screen in Material Master
• Main Data: This will include basic data (base
unit of measure, weight), purchasing data
(over tolerance and under tolerance),
accounting data (standard price, moving
price).
Additional Data: This will include additional
information like short description about
material, currency etc.

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• Basic Data
• Additional Data

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 Material Master
• Material Types
• Material Groups
• Number Range
• Creation of Material Master

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 Materials Management (MM)

Material Type
• Material types group materials with the same
attributes
• Material type information determines:
– What views are maintained
– Whether internal or external procurement is allowed
– If changes in material quantity / Value are updated
– Which general ledger accounts are updated

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Material Description Qty /Value Updating Examples
Type
ROH Raw Materials (Purchased Externally • Quantity ✔ Steel, Plastic
•Purchasing data mandatory • Value ✔
•No Sales Views
HAWA Trading Goods (Always Purchased Externally) • Quantity ✔ TV, AC, etc..
•Sold without any change to the material • Value ✔
•No Manufacturing View exists
FERT Finished Products • Quantity ✔ Car, TV
•Are Produced Internally • Value ✔
•Sales data mandatory
•no purchasing views exists
HALB Semi Finished Material (procured externally • Quantity ✔ Wheel, automatic
(sub-contracting)/manufactured in-house) • Value ✔ gears
• Purchasing data
• Work Scheduling data
PIPE Pipeline Material • Quantity  Oil, water, electricity
• Not Stocked ,not procured or planned • Value 
• can be withdrawn from the pipeline in any quantity at any • Pipe Mand ✔
time. • Pipe Allowed 
• Bills are received and against which Settlement is made to
the authorized vendor(Party).
FRIP Perishables (Goods that are perishable in an assortment.) • Quantity ✔ Fruit, Dairy Products,
• Value ✔ Meat
Food Foods excluding perishables • Quantity ✔ Jam, Oats
• Value ✔
HIBE maintenance, repair and Operating Supplies, procured externally • Quantity ✔ Test material, washer,
and are needed to manufacture other products. • Value ✔ pump
•No sales Data, Purchasing data exists
VERP Packaging • Quantity ✔ Pallet, Box
• Value ✔
LEER Empty containers • Quantity ✔ Bottle, case
• Value ✔ 13
Material Name Qty /Value Examples
Type Updating
ERSA Spare parts Fuse, Insulator, grinder
motor,
DIEN Services procured externally Construction Work
(outsourced)/performed internally cleaning Services
•Contains Purchasing Data legal services
•Scheduling views and
•Storage views do not exists
NLAG Non-stock Material (consumed Value ✔ Gear Box, Welding
immediately) Machine, Nails
UNBW Non-valuated Quantity ✔ Stationery, auxiliary
material in production
like rubber rings, or
paper sheets.
FHMI Production resources/tools • Quantity ✔ Measuring /test tools
• Value ✔
PROD Product Group ICE Cream Products,
Light Bulbs
IBAU Maintenance assembly (Plant Pump Assembly,
Maintenance) Shafting Assembly
VKHM Additionals Labels

KMAT Configurable material Desktop, Printer

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 Material Type Creation
T Code (OMS2)
Menu Path: IMG🡪Logistics General 🡪 Material
Master 🡪 Basic Settings 🡪 Material Types 🡪 Define
Attributes of Material Types

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Material Types Creation Screen

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 Material Group
Material group is a wider range of material type.
• Materials with some common attributes are
taken together and they are assigned to
material group.
• Materials with different material types can
have same material group.

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 Material Group Creation
TCODE : OMSF
• IMG => Logistic General => Material Master =>
Settings for Key Fields => Define Material
Groups

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Material Group Creation Screen

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 Number Range
When we create material master record every material is
recognized by a number, that number will be unique and
known as material number. We can assign number to
material through two ways:

• External number assignment - While creating material

you have to enter your own number (containing alphabets
or digits), and that should be unique.

• Internal number assignment - While creating material

you need not enter any number, system will automatically
generate a unique number to that material. 20
 Define Number Range
TCode: MMNR
• Path to Create Number Range:
IMG => Logistic General => Material Master => Basic
Settings => Material Types => Define Number Range
for Each Material Type

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Number Range Maintenance

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 Materials Management (MM)

Overview (Material Master)

• Industry Sector
• Maintenance Features
• Organizational Levels
• Primary Views

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 Materials Management (MM)

Material Master
Industry Sector
• Records are grouped according to industry
sector and material type
• Determines the industry specific data that will
appear on the master record

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 Materials Management (MM)

Material Master
Maintenance
• Defaults - speeds entry of data by using the
most frequently used field values (plant,
purchasing organization, etc.)

• Reference Material - speeds entry of data by

copying data from existing material master

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 Materials Management (MM)

Material Master
Maintenance (continued)
• Profiles - speeds entry of data by copying standard data
created in a profile into a selected view Materials
Requirements Planning (MRP)
• Logistics🡪 Materials Management🡪 Material Master 🡪Profile🡪
MRP Profile🡪 Create (Tcode : MMD1)
• MRP Profiles can be used while creating Material

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 Material Master
Maintenance (continued)
• Collective entry of
storage location data -
speeds creation of
multiple storage
locations (Tcode: MMSC)

• Report showing Storage

Locations for a material
(Tcode MB52)
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 Materials Management (MM)

Material Master
Levels
Material master data can be related to all
organizational levels

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 Materials Management (MM)

Material Master
Views
• Basic data 1, 2
• Classification
• Sales: sales organization data 1, 2
• Sales: general/plant data
• Sales text
• Purchasing
• Purchase order text
• Forecasting
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 Materials Management (MM)
Material Master
Views (continued)
• MRP 1, 2, 3, 4
• Work scheduling
• Storage
• Warehouse management
• Quality management
• Accounting 1, 2
• Costing 1, 2

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 Materials Management (MM)

Material Master
Material Management
• Basic Data g
cha sin
P ur
• Purchasing View MR
Vie P 1
• MRP 1,2,3 w

• General Plant Barrel Pen

Data/Storage
• Accounting 1

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 Materials Management (MM)
Material Master
Basic Data
• General data
– Basic Unit of Measure
• Unit of measure in which stocks of the material are managed
– Material Group
• Key that you use to group together several materials or services
with the same attributes
– Division
• Used to determine the sales area and the business area for a
material, product, or service

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 Materials Management (MM)
Material Master
Basic Data (continued)
• Dimensions/EANs
– Gross weight
• Used to check storage capacity in warehouse
– Net weight
• Weight excluding packaging and extras – this is needed for sales
and distribution
– Weight Unit
• Unit of Measure for weight
– Volume
• The space that the material occupies per unit of volume

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 Materials Management (MM)
Material Master
Purchasing View
• General Data
– Order Unit
• The unit of measure in which a company purchases the product
– Purchasing Group
• Key for a buyer or a group of buyers, who is/are responsible for certain
purchasing activities.
– Plant specific material status
• In a particular plant material wants to block for purchasing and
inventory transactions then select “BP” or “01”
– Valid From
– Qualify for Free goods discount
• If any vendor is giving free goods or bonus goods for this material [buy
two get one free] then select option “2”
– Automatic PO (ME59N)
• to be maintained in Material master + Vendor Master
• Info record must be maintained

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 Material Master
Purchasing View
• Purchasing Values
– Purchasing Value Key (OME1)
• Define the reminder days and tolerance limits for purchasing
• Other data / Manufacturer data
– GR Processing Time
• Number of working days required for completing the quality inspection and to place the material in
store after entering “GR”
– Post to Inspection
• If selected at GR stock type by default comes as “ Quality Inspection”
– Source List
• If selected it is must to maintain source list record in “ME01”. Otherwise system will show error at
PR /PO. If vendor not mentioned in source list is used in PO then also error is displayed.
– Quota Arrangement Usage
– Manufacturer
– Manufacturer Part Number
Note: In purchasing view some fields are maintained at client level i.e. in “MARA”
Table and some fields at Plant Level i.e. in “MARC” Table.

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 Materials Management (MM) Integration
Material Master
Plant Data/Storage 1
• General Data
– Unit of Issue
– Storage Bin
– Temperature Conditions
– Storage Conditions
– Hazardous Material Numbers (VM01)
– Number of GR Slips
– Cycle counting Physical Inventory
– Label type & Label forms
– Maximum Storage Period

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 Materials Management (MM) Integration
Material Master
Plant Data/Storage 1
• General Data
– Container Requirements
• Define the regulations that govern which type of container the material
must be stored and shipped in
– Storage Conditions
• Defines the conditions on how a material must be stored or warehoused
• Shelf Life Data
– Minimum remaining shelf life
• Minimum time the material must keep upon goods receipt for the goods
receipt to be accepted by the system
– Total Shelf Life
• Period of time the material will keep in total, from the date of production or
receipt to the shelf life expiration date

SPRO🡪 Logistics General 🡪 Material Master 🡪 Settings for Key Fields

Note : Here some fields are maintained at client level (MARA), some fields at
Plant level (MARC) and some fields at storage location level (MARD)
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 Materials Management (MM)
Material Master
MRP 1
• General Data
– Purchasing Group
• The buyer(s) who are responsible for certain purchasing
activities
• MRP Procedures
– MRP Type
• Determines whether and how the material is planned
– Reorder Point
• If stock falls below this point, the system is flagged to
create a planned order
– MRP Controller
• The person(s) responsible for the material planning

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 Materials Management (MM)
Material Master
MRP 1 (continued)
• Lot Size Data
– Lot Size
• The lot sizing procedure to calculate the quantity to be
produced or procured
– Minimum Lot Size
• The smallest order quantity
– Fixed Lot Size
• The quantity to be ordered

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 Materials Management (MM)
Material Master
MRP 2
• Scheduling
– Planned Delivery Time
• Number of calendar days needed to obtain the material
– Scheduling Margin Key
• Used to determine the floats required for scheduling
• Net Requirement Calculation
– Safety Stock
• Specifies the quantity whose purpose is to satisfy
unexpectedly high demand in the coverage period

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 Materials Management (MM)

Material Master
MRP 3
• Availability Check
– Specifies whether and how the system checks availability and
generates requirements for materials planning

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 Materials Management (MM)
Material Master
Accounting 1 (Table MBEW)
• Current Valuation
– Valuation Class
• Allows the stock values of materials of the same material type to
be posted to different G/L accounts.
• Allows the stock values of materials of different material types to
be posted to the same G/L account.
• Determines together with other factors the G/L accounts updated
for a valuation-relevant transaction (Material Movements)

– Price Unit
• Number of units to which the price refers

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 Valuation Class
⮚SPRO🡪 Materials Management🡪 Valuation and Account Assignment 🡪 Account
Determination 🡪 Account Determination Without Wizard 🡪 Configure Automatic
Postings (OMWB)

⮚SPRO🡪 Materials Management🡪 Valuation and Account Assignment 🡪 Account

Determination 🡪 Account Determination Without Wizard 🡪 Configure Automatic
Postings 🡪 Account Assignment (OBYC)

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GL Accounts Assigned to Valuation Class

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 Check GL in Material Document (GR)
• SAP Report to Check materials documents
generated for a Material
• Information Systems 🡪 Logistics🡪 Inventory
Management 🡪 Material 🡪 Document Display
(MB51)

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 Materials Management (MM)

Material Master
Accounting 1 (continued)
• Current Valuation
– Price Control Indicator
• The price control used to valuate the stock of a material (e.g, Standard or Moving
Average Price)
– Standard Price (S)
• The valuation of material stocks at standard prices means that all goods
movements are valuated at the same price over an extended period
– Moving Average Price (V)
• The system calculates the moving average price automatically by dividing the
material value in the stock account by the total of all storage location stocks in the
plant concerned
Note:
⮚ For all externally procured materials, moving average price will be used . Reason
being we do not have control on external vendor price that is price fluctuates from
vendor to vendor
V= Total Value/ Total Stock

⮚ For inhouse products Standard Price is advantageous, as if product is purchased

with any other price the difference will be posted to separate GL account.

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Changes in Material Master once Created

• Change Material Type

• Logistics 🡪 MM🡪 Material Master 🡪 Material 🡪 Change
Material Type (MMAM)
• Change Material Price
– Logistics 🡪 MM🡪 Valuation 🡪 Change in Material
Price 🡪 Change in Material Price (MR21)
• Display Changes
– Logistics 🡪 MM🡪 Material Master 🡪 Material 🡪
Display Changes (MM04)

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