Interview Questions For SAP MM

How to configure the system for automatic conversion of Purchase Requisition to Purchase
Order?

Ensure automatic purchase order field in Material Master (purchasing view) and Vendor Master
is ticked,Maintain the source list for respective materials and vendor. Also maintain correct data
at the MRP views. On the MRP run system will generate purchase requisitions for the following
materials. Using T-code ME59 conversion of purchase requisition to Purchase orders is
possible.

What are the configuration for automatic creation and selection of storage locations in
Inventory Management?

Auto creation of storage location in inventory management can be created with respect to the
movement type and plant.Using t-code OBM2/OBM3.

For automatic storage location selection, storage location data can be specified in procurement
storage location field of MRP view in Material master and Issue storage location field in Bill Of
Material.

How to maintain automatic determination of G/L accounts during GR/GI/Transfer

posting?

Automatic account determination of GL account can be maintained using T-code OBYC by

specifying GL code for specific valuation class within the posting key(TE-KEY) maintained for
respective movement types.

What is the difference between selection parameter WE101 and WE103?

To optimize internal processes, you regularly create list displays to inform yourself about the
status of your purchase orders, info records, and other documents in the system.

You are checking the purchase orders issued over the past 24 months. you are primarily
interested in POs against which no goods receipts have been entered.

Choose the scope of list BEST_ALV, so that the list of selected purchase orders is displayed
with ALV Grid Control.

Choose Logistics --> Materials Management --> Purchasing --> Purchase Order --> List
Displays --> For Vendor (ME2L).
Selection parameter : WE101 (open goods receipt)
WE103 means then that SAP considers the GR blocked stock as well as already received
quantity while with WE101 the GR blocked stock is not considered as received.
What is the diffrence between XD01, XK01 & MK01? Knowing that all the above tx codes
are used to create vendor.

There are 3 t-codes by which you can create vendor:

XK01 is for centrally creating vendor where all data are included.
MK01 is for purchasing vendor.
FK01 is for accounting vendor or vendor with accounting details.
What is meant by consignment stock?

A form of business in which a vendor (external supplier) maintains a stock of materials at a

customer (purchaser) site.

The vendor retains ownership of the materials until they are withdrawn from the consignment
stores.

Payment for consignment stock is required only when the material is withdrawn for use. For this
reason, the vendor is informed of withdrawals of consignment stock on a regular basis.

What are the steps involved in consignment cycle?

Consignment is a type of procurement process. In this process, the vendor makes material
available, which you then manage as consignment stock. A liability only arises when material is
withdrawn from consignment stock, not when the stock is placed in the consignment stores.

1. Material Master record and Vendor should be there.

2. Info record with procurement type consignment should be there.

3. You have to activate the consignment price via info record in SPRO -> Materials
Management -> General settings for materials management --> Activate Consignment Prices via
Info Records

4. Here you have to remember that, while placing PO, the price will be zero and the price will be
picked from inforecord.

5. Vendor will supply the goods as per the PO and our company will receive the goods. After
receiving the goods the same will be lying in your company premises, but not belongs to your
inventory. It can be used only after posting to inventory or consuming directly. But will pay for
the goods as & when we are consuming/posted to inventory to the company.

6. The payment will be made thru MRKO settlements. We can also set for automatic payments
thru batch jobs.
What is a reference purchase organization? When can it be used?

Pur Org:

The purchasing organization is an organizational unit which procures articles and negotiates
general purchase price conditions with vendors. It is responsible for all purchasing transactions
in the company.

Ref Pur Org:

In Customizing it is possible to assign reference purchasing organizations to a purchasing

organization. This allows the purchasing organization access to the conditions and contracts of
these reference purchasing organizations. The purchasing organization can make use of up to
two reference purchasing organizations when the sequence in which it accesses conditions is
determined.

Std Pur Org:

This standard (default) purchasing organization is used When the source of supply is determined
for the purposes of a stock transfer or consignment, the default purchasing organization is used
automatically. Further purchasing organizations can be assigned to the site in addition to the
default. A site cannot order if it has not been assigned to a purchasing organization.
What are the steps in automatic account assignment configuration?

Define Valuation Classes. (OMSK)

SPRO -> Material Management -> Valuation & Account assignment -> Account Determination -
> Account Determination without wizard -> Define Valuation Classes.

Define Valuation Control. (OMWM)

SPRO -> Material Management -> Valuation & Account assignment -> Account Determination -
> Account Determination without wizard -> Define Valuation Control.

Define Account Grouping for Movement Types (OMWN)

SPRO -> Material Management -> Valuation & Account assignment -> Account Determination -
> Account Determination without wizard -> Define Account Grouping for Movement Types.

Group Together Valuation Areas (OMWD)

SPRO -> Material Management -> Valuation & Account assignment -> Account Determination -
> Account Determination without wizard -> Group Together Valuation Areas
Configure Automatic Postings (OMWB) or OBYC

SPRO -> Material Management -> Valuation & Account assignment -> Account Determination -
> Account Determination without wizard -> Configure Automatic Postings

What is meant by access sequence? When it is used?

An access sequence is a search strategy with the aid of which the SAP System searches for valid
condition records of a certain condition type.

For example, you can stipulate for a price that the SAP System first searches for a price for a
specific plant, and then for a generally applicable price.

For condition types for which you wish to maintain conditions with their own validity period,
you must assign an access sequence. With this, you define which fields the SAP System checks
in searching for a valid condition record.

Example:

An access sequence has been assigned to condition type PB00 so that prices can be maintained in
purchasing info records and contracts.

No access sequence has been assigned to condition type RC00 because it does not have a validity
period of its own. In the standard system, it is always maintained simultaneously with the price
and is valid for the period of the price.

How does the PO pick up the pricing schema?

The calculation schema picks up using vendor schema (if you assign calculation schema only to
vendor schema then it will pick the same calculation schema for the vendors assigned to
particular vendor schema even though the Pur. Org is different, the condition is the vendor
record must be exist in all Pur. Org) or purchasing org schema (if you assign calculation schema
only to purchasing schema then the PO will pick up same calculation schema for different
vendors), or both at time (if you wants separate pricing for domestic and foreign vendor under
one Pur. Org maintain two vendor schemas different for two vendors and assign it to purchasing
org schema).

What are the types of special stocks available?

Special stocks and special procurement types are divided into the following areas:
- Consignment

- Subcontracting

- Stock transfer using stock transport order

- Third-party processing

- Returnable transport packaging

- Pipeline handling

- Sales order stock

- Project stock

Difference Between MR21 and MR22 Transaction

In MR21--> You have to enter the new price and it will direct change the moving average price
or standard price with refer to the material master settings.

E.g. Material No: ZZZZZZZ

Material Price: 20.00

If you use MR21 you can change the price directly in to 23 or 25 whatever you need.

In MR22--> You have to enter the amount needs to be adjusted and it will hit the moving
average price or the standard price with refer to the quantity you are having in stock.

E.g Material No: ZZZZZZ

Material Price: 0.17
Quantity: 191 Nos
Total Value : 31.57 ( 31.57/191=>0.17)

If you enter debit or credit to this material.

Assume if you want to add 100.00 to this material.

After the change ==>

Material No: ZZZZZZ
Material Price: 0.69
Quantity: 191 Nos
Total Value : 131.57 ( 131.57/191=>0.69)

Instead of increase the value you can decerease also. (by enter negative value)
This is the difference between this two transactions.

Setting Up The Company Code

Here, I will clearly explained how to create COMPANY and COMPANY CODE.

Just follow below as it is.

For e.g.

COMPANY RELIANCE -9001

COMPANY CODE -8001

RELIANCE MOBILE

COMPANY CODE -8002

RELIANCE INSURANCE

PLANT 1

PLANT 2

PLANT 1

PLANT 2

COMPANY RELIANCE -9001

COMPANY CODE -8001

RELIANCE MOBILE

COMPANY CODE -8002

RELIANCE INSURANCE

PLANT 1

PLANT 2

PLANT 1

PLANT 2

COMPANY RELIANCE -9001

COMPANY CODE -8001

RELIANCE MOBILE
COMPANY CODE -8002
RELIANCE INSURANCE

PLANT 1

PLANT 2

PLANT 1

PLANT 2

Path to create COMPANY:

SPRO IMG <Enterprise structure > <Financial accounting> < Define Company> (select
company 1000 and select copy as give your own company name reliance for example)

Company - 9002
Company Name - Reliance
Enter required field now your own company Reliance is ready.<SAVE>

Path to create COMPANY CODE:

SPRO IMG <Enterprise structure > < Edit copy, Delete, Check Company Code> <Edit company
code data> <select company code 1000 copy as> and enter your own company name Reliance
mobile (like a number of company code you can assign to your own company)

Company code - 8001

Company Name - Reliance Mobile,
Enter all required fields.

Again same way create one more company code for "Reliance Insurance"
<save>

Now we see How to assign Company code (Reliance mobile) to our Company (Reliance)

SPRO IMG < Enterprise Structure > < Assignment > <Financial Accounting> < Assign
Company code to Company> <select your own company code reliance mobile and enter your F4
fine your company reliance > <SAVE>

You're done.
Checklist For Change of Material UOM
If you have already use that material, means purchase, produce or sell that item, it is not
advisable to change Base UoM, but still if you need to know steps then:

1. Production Data: If it is a finished good or a component of a BOM, then remove BOM,

remove assignment to Routing/Master Recipe, delete production versions. Delete any
process/production orders or complete then and set status to TECO.

2. Purchasing: the deletion flag must be set in all current and old purchase orders and purchase
info recs. Delete entries in source lists, contracts and outline agreements.

3. QM: Make UD on outstanding inspection lots.

4. Planning Data: Delete any forecasts or planned independent requirements or SOP/Flexible

planning plans.

5. Sales: Cancel or complete the process for any sales documents (eg orders, deliveries). Remove
or disable pricing records.

6. Warehouse Management: Cancel or complete transfer orders, transfer requirements, posting

change notices. Ensure that no negative bin stock exists that cannot otherwise be balanced by
other positive bin stocks.

7. Physical Inventory: Delete old, obsolete (but still active) physical inventory documents. Post
Count, Adjust and close documents, or delete item from active documents.

8. Record previous period stock for the plant (MM03-Accounting). If non-zero then record
details by batch and storage location (table MCHBH if using release > 4.0a).

9. You must remove previous period stock - the previous period in both MM and GL may need
to be reopened (or wait until month-end processing when both previous and current periods are
open simultaneously). To remove you need to use a transaction such as MI10 or MB1C and use a
posting date of the previous period.

10. You must remove any remaining current period stock.

11. Planning Data (cont'd): delete all planned orders. Delete MRP List if any (check with
MD05).

12. Costing: Delete any cost estimates.

13. Legacy Systems / Interfaces: Check what impact the change will have.

14. Material Master preparation:

* Ensure no alternative unit of measures are being used on the sales / purchasing / work
scheduling / plant storage 1 views.

* Remove all alternative UoMs from "Extras"

15. CHANGE THE BASE UNIT OF MEASURE. If any errors, then check above steps again.

16. Material Master:

* Modify Planned Price 1, standard cost and/or moving average price on costing and accounting
views.

* Modify any unit-related fields eg gross/net weights, MRP lot sizes / safety stock

* Re-create any alternative units of measure and re-assign to correct material master views.

17. Recovery: If you need any of the orders or master data deleted in any of the above steps, then
now is the time.

18. Re-enter stock. Do not attempt to add back into previous period especially if using moving
average price control (V) - do not back-date.

I think you would have change your opinion after reading all these steps, better is to create
a new product.

SAP MM Config - Create a New Plant

IMG for SAP Plant Maintain

How to Configure a New Plant in SAP?

Plant 0001 is the SAP default provide for your reference.

OX14 - Define Valuation Area (Tick one only- Once your system go live, no more changes)
Most company take the SAP recommended choice - Value Material Stock at Plant level
Value Material Stock at Plant or Company Level

o If you valuate material stocks at plant level, the plant is the valuation area.
o If you valuate material stocks at company code level, the company code is the
valuation area.
o The decision you make applies to the whole client.

OX10 - Create / Change / View Plants

OVXB - Create / Change / View Division

OX18 - Assign Plant to company code
e.g. 0001 - 0001 - All Plants
Px1 - Plant Px1
Px2 - Plant Px2
OX19 - Assignment of company code to the Controlling Area

OB38 - Assign company code to Credit Control Area

OMJ7 - Assign business area to Plant/Valuation area and division

e.g. Plant Px1 - Business Area Bx1
Bx2
Assign Valuation area to the Business Area
.e.g. Valuation area Vx1 - Business Area Bx1
Business Area Bx2

OMS0 - Assign Factory Calendar to the Plant and Business Area

The plant plays an important role in the following areas:

 Material Valuation - If the valuation level is the plant, the material stocks are valuated at
plant level. Each plant can have its own material prices and account determination.
 Inventory Management - The material stocks are managed within a plant.
 MRP - Material requirements are planned for each plant. Each plant has its own MRP
data. Analyses for materials planning can be made across plants.
 Production - Each plant having they own production/planning.
 Costing - In costing, valuation prices are defined only within a plant.
 Plant Maintenance - If a plant performs plant maintenance planning tasks, it is defined as
a maintenance planning plant. A maintenance planning plant can also carry out planning
tasks for other plants (maintenance plants).

If you want to use the application PP (production planning) or product costing and job-order
costing, you must set valuation at plant level.

The valuation level that you choose affects

 the maintenance of material master records

 the G/L accounts in which material stocks are managed
 the G/L accounts to which transactions are posted in Materials Management

Effect on the maintenance of material master records:

Depending on the valuation level chosen,

 you maintain accounting data in the material master record for each plant or for each
company code
 you define a valuation price for the material in each plant or in each company code
Effect on G/L accounts:

If material stocks are valuated at company code level, all plant stocks of a material are managed
in a joint stock account for each company code.
If material stocks are valuated at plant level, you can manage the material stocks for each plant in
different accounts. For each plant, you can define a separate determination.
If several plants are to use account determination, you can group these plants in "Valuation and
Account Assignment" Customizing.

Explain What Are Material Types in Material Master

Material Master - Introduction and What Material Types are there?

The material master is the starting point for the rest of the modules.

What Material Types are there?

The material types that you use are configured in Customizing for the Material Master under

Logistics Master Data : Material Master -> Material -> Control data -> Define material
type attributes.

The following list shows you the material types contained, for example, in the standard SAP R/3
System, and what their different roles are:

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 (semifinished products)

Semifinished 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.
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.)

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.

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.

WETT (competitive products)

Competitive products have their own material master records created from the Basic Data view.
The competitor's number, which is stored in the material master record, assigns the material to a
particular competitor.

How to Maintain the Material Type?

Configuring the Material Master Material Type:

OMS2 - Material Type Maintenance - Create/Change/Display

Steps:-

 transaction OMS2
 click Change
 key in the Material Type you want to change e.g. FERT then hit enter

The Views belows allows you to choose the Views for each Material Type.
(Press the Page up/Page Down keys to scroll the views)

If you tried to change from FERT to HAWA in 4.6x, you will receive an error message :-
The material type cannot be changed. This is not allowed if only external procurement is defined
for the new material type, or if the new material type has a different account category reference
than the old material type.

To overcome it, goto OMS2 and change the HAWA material type.

In the Internal/external purchase orders sections:

Original Changes
Ext. purchase orders 2 1
Int. purchase orders 0 1

What is the transaction code for configuring and selecting the views of material
master for the particular combination.

In T.Code: OMS2, we can configure Material type & the relevant views in it.

However, while creating Material master, we should select only the required views & maintain
appropriate data.

MM01 - Create material

MM02 - Change material

MM03 - Display material

Views in material master:

1) Basic data 1

2) Basic data 2

3) Classification

4) Sales: Sales org data 1

5) Sales: Sales org data 2

6) Sales: General/Plant data

7) Foreign trade: Export data

8) Sales text

9) Purchasing
10) Foreign trade: Import data

11) Purchase order text

12) MRP 1

13) MRP 2

14) MRP 3

15) MRP 4

16) Forecasting

17) Work scheduling

18) Production resources/Tools

19) General plant data/Storage 1

20) General plant data/Storage 2

21) Quality management

22) Accounting 1

23) Accounting 2

24) Costing 1

25) Costing 2

26) Plant stock

27) Storage location stock

Select the organization levels for which you want the data to be created/changed/displayed
in the selected views.

Basic Data 1

General Data:

Base unit of measure = Unit of measure in which stocks of the material are managed.
You define the base unit of measure and also alternative units of measure and their conversion
factors in the material master record.

Ex: piece(s), gram, second, pound

Material group = Key that you use to group together several materials or services with the same
attributes

Ex: metal processing, steel, electronics, mechanics, casing, monitor, hard disks

Old material number = Number under which you have managed the material so far or still
manage it, for example, in another system or card index

Division = A way of grouping materials, products or services. The systems uses divisions to
determine the sales areas and the business areas for a material, product or service

Material Authorization Group:

Authorization group = The authorization group enables you to protect access to certain objects

Dimensions:

Gross weight, Net weight, Volume, Weight unit, Volume unit

Basic Data 2

Other Data:

Basic material = Basic constituent of the material

Standard desc. = Description of the material in accordance with the appropriate industry standard
(ANSI or ISO)

Environment:

DG indicator profile = Alphanumeric key that uniquely identifies the dangerous goods profile

Design Documents Assigned:

No link = To create links to drawings/documents in the document management system, select
Extras &#61664; Document data

Drawing:

Document (without document management system) = Number of the drawing that exists for the
object

Sales: Sales Org 1

General Data:

Base unit of measure, Material group, Division, Delivering plant

Tax Data:

Country, Tax category, Tax classification

Quantity Stipulation:

Min order qty, Min delivery qty, Delivery unit

Sales: Sales Org 2

Material statistics group (whether relevant for statistics or not), Account assignment group, item
category group, product hierarchy.

Sales: general/plant

Availability check, transportation group (a grouping of materials that share the same route and
transportation requirements), loading group (group sharing same loading reqts, combined with
shipping conditions and delivering plant determines shipping point for the item), material group:
shipping materials (groups together materials which require similar shipping materials.

MRP1

MRP type, reorder point (if the qty falls below this point, the system flags the material for
requirements planning), Lot size (procedure to calculate the qty procured or produced).
MRP2

GR processing time (number of workdays required after receipt of the material for its inspection
and placement into storage), planned delivery time (no of days needed to obtain the material or
service if it is procured externally), safety stock (qty whose purpose is to satisfy unexpectedly
high demand in the coverage period).

MRP3

Strategy group (the strategy group groups all the planning strategies that can be used for a
particular material), availability check, total replenishment lead time (In an availability check
where the system takes the replenishment lead time into consideration, it only checks whether
there are sufficient incoming qtys and stocks available to cover the reqts within the
replenishment lead time)

Plant data/storage 1

Unit of issue (maintain if only different from the base unit of measure), temperature conditions,
storage conditions, container requirements.

Accounting 1

Currency, valuation class (depends on material type), price control (S = Standard or M = Moving
average price)

What Are The Tables for SAP MM

Related to Materials:

MARA - Material Master: General data

MAKT - Material Master: Description
MARM - Material Master: Unit of Measure
MAPE - Material master: Export control file
MARC - Material master: Plant data
MARD - Material master: Storage location
MAST - Material link to BOM
MBEW - Material valuation
MLGN – Material Master: WM Inventory
MLGT – Material Master: WM Inventory type
MDIP - Material: MRP profiles (field contents)
MKOP - Consignment price segment (old versions of SAP)
EBEW - Valuation of sales order stock
QBEW - Valuation of project stock
MVER – Material Master: Consumption <Plant>
DVER – Material Master: Consumption <MRP Area>
MVKE – Material Master: Sales <Sales Org, Distr Ch>
MLAN - Material Master: Tax indicator
MARC - Material Master: Plant data
MAPR – Material Master: Forecast
MARD – Material Master: Storage Location
MCH1 – Material Master: X Plant Batches
MCHA – Material Master: Batches
MCHB – Material Master: Batch Stock
MDMA - MRP Area data
DBVM - MRP Planning File Entry: MRP Area
MOFF - Outstanding Material Master Records (Maintenance status)

MARCH - Material Master C Segment: History

MARDH - Material Master Storage Location Segment: History
MBEWH - Material Valuation: History
MCHBH - Batch Stocks: History
MKOLH - Special Stocks from Vendor: History
MSCAH - Sales Order Stock at Vendor: History
MSKAH - Sales Order Stock: History
MSKUH - Special Stocks at Customer: History
MSLBH - Special Stocks at Vendor: History
MSPRH - Project Stock: History
MSSAH - Total Sales Order Stocks: History
MSSQH - Total Project Stocks: History

Related to Vendors:

LFA1 - Vendor Master: General data

LFB1 - Vendor Master: Company data
LFM1 - Vendor Master: Purchasing Data (Purchasing organization)
LFM2 - Vendor Master: Purchasing Data (Plant, Vendor sub-range)

Related to Purchasing:

EBAN - Purchase requisition: items

EBKN - Purchase Requisition: account assignment
STXH - SAPScript Text Header
STXL - SAPScript Text Lines

EKKO - Purchasing document header

EKPO - Purchasing Document: Item
EKET - Purchasing Document: Delivery Schedules
MDBS - Material View of Order Item/Schedule Line (good to find open PO's)
EKKN - Account assignment in purchasing document
EORD - Purchasing Source List
EIPA - Order price history record
EKAB - Release documentation
EKBE - Purchasing document history
EKBZ - Purchasing document history: delivery costs
EKPB - "Material to be provided" item in purchasing document
ESKL - Account assignment specification for service line
ESKN - Account assignment in service package
ESLH - Service package header data
ESLL - Lines in service package
ESSR - Service entry sheet header data
ESUC - External services management: Unplanned limits for contract item
ESUH - External services management: unplanned service limits header data
ESUP - External services management: unplanned limits for service packages
ESUS - External services management: Unplanned limits for service types

EINA - Purchase Info Record: General

EINE - Purchasing info record: purchasing organization data
KONP - Condition Item
KONH - Condition Header

Related to Inventory Management:

ISEG - Physical inventory document items

MKPF - Material document: Header

MSEG - Material document: item

RKPF - Reservation: Header

RESB - Reservation: Item

Related to Invoice Verification

BSIM - Secondary index: documents for material

MYMFT - FIFO results table
MYML - LIFO material layer
MYMLM - LIFO material layer (monthly)
MYMP - LIFO period stocks, single material
MYMP1 - Receipt data LIFO/FIFO valuation
MYPL - LIFO pool layer
MYPLM - LIFO pool layer (monthly)
RBCO - Document item, incoming invoice account assignment
RBDIFFKO - Invoice Verification: conditions
RBDIFFME - Invoice Verification: quantity differences
RBDRSEG - Invoice Verification batch: invoice document items
RBKP - Document header: incoming invoice
RBKPB - Invoice document header (batch invoice verification)
RBTX - Taxes:incoming invoice
RBVD - Invoice document: summarization data
RBVDMAT - Invoice Verification: summarization data, material
RBWT - Withholding tax:incoming invoice
RKWA - Consignment withdrawals
RSEG - Document item, incoming invoice

Related to Customising and Other Master Data:

MDLV - MRP Areas

MDLG - MRP Areas - Storage Locations
MDLW - MRP Areas - Plants
MDLL - MRP Areas - Subcontractor
T023 - Material Groups
T024 - Purchasing groups
T030 - Standard Accounts Table (Automatic Account Determination)
T156 - Movement Type
T156T - Movement Type: Text

AUSP - Release Procedure: Strategy values (cl20n, cl24n)

AGR_USERS - Assignment of roles to users
CDHDR & CDPOS - Change history of master data and documents
EDID4 - EDI information
TSTC - SAP Transaction Codes, lock/unlock: sm01, created: se93
TSTCT - Transaction codes TEXT

NAST - Message status

Article Number vs Material Number

What is the differences between article and material number?

Article number is an internationally standardized number uniquely identifying a material. It

always refers to a specific unit of measure or type of packaging such as a pack of ten pieces or a
box.

Article number normally has 13 digits & the following structure:

* EAN prefix
This may be a country indicator, identifying the country from which the material comes, or, in
the case of instore EANs, it may be company-specific.

*Article number

*Check digit
Material number is number uniquely identifying a material master record, and thus a material.
For every material that your company uses, you must create a material master record in the
material master. This record is uniquely identified by a material number.

Some consultants say that material number is part of the article number.

What is Business Area?

Business Area is responsible for a plant is determined as a function of the division. As a rule, a
valuation area corresponds to a plant.

What is MRP?

MRP is carried out using current and future sales figures. The main function of material
requirements planning is to guarantee material availability, that is, it is used to procure or
produce the requirement quantities on time both for internal purposes and for sales and
distribution. This process involves the monitoring of stocks and, in particular, the automatic
creation of procurement proposals for purchasing and production. In doing so, MRP tries to
strike the best balance possible between optimizing the service level and minimizing costs and
capital lockup.

What is MPS?

A special form of MRP is master production scheduling (MPS). MPS is executed using the
same principles as MRP. The aim of MPS is to reduce storage costs and to increase planning
stability. This is useful in the following cases :

To ensure that there is good material availability, various floats and a safety stock are entered,
which inevitably lead to high stock levels. Thus, high storage costs are incurred, especially for
valuable materials.

The master plan of these materials greatly influences the entire production process: The
planning of the dependent parts depends on the planning result of the finished products and
main assemblies, even if the finished products represent a small share of all the materials to be
planned. Frequent changes at finished product level can render the complete MRP run unstable.

MM Flow with Step By Step Process

Describe the MM process flow.

By: Sandhya
The MM Process flow:

The typical procurement cycle for a service or material consists of the following phases:

1. Determination of Requirements
Materials requirements are identified either in the user departments or via materials planning and
control.
(This can cover both MRP proper and the demand-based approach to inventory control. The
regular checking of stock levels of materials defined by master records, use of the order-point
method, and forecasting on the basis of past usage are important aspects of the latter.) You can
enter purchase requisitions yourself, or they can be generated automatically by the materials
planning and control system.

2. Source Determination
The Purchasing component helps you identify potential sources of supply based on past orders
and existing longer-term purchase agreements. This speeds the process of
creating requests for quotation (RFQs), which can be sent to vendors electronically via SAP EDI,
if desired.

3. Vendor Selection and Comparison of Quotations

The system is capable of simulating pricing scenarios, allowing you to compare a number of
different quotations. Rejection letters can be sent automatically.

4. Purchase Order Processing

The Purchasing system adopts information from the requisition and the quotation to help you
create a purchase order. As with purchase requisitions, you can generate Pos yourself or have
the system generate them automatically.

Vendor scheduling agreements and contracts (in the SAP System, types of longer-term purchase
agreement) are also supported.

5. Purchase Order Follow-Up

The system checks the reminder periods you have specified and - if necessary - automatically
prints reminders or expediters at the predefined intervals. It also provides you with an up-to-date
status of all purchase requisitions, quotations, and purchase orders.

6. Goods Receiving and Inventory Management

Goods Receiving personnel can confirm the receipt of goods simply by entering the Po number.
By specifying permissible tolerances, buyers can limit over- and underdeliveries of ordered
goods.

7. Invoice Verification
The system supports the checking and matching of invoices. The accounts payable clerk is
notified of quantity and price variances because the system has access to PO and goods receipt
data. This speeds the process of auditing and clearing invoices for payment.
How to Block materials from inventory posting?
After blocking, when the user do a inventory posting, they will get this error message
:-

E: Material xxxxx has status Blocked for procmnt/whse

To activate the blocking :-

Goto transaction MM02 - Purchasing View

Type in 01 at the MM/PP status field and save it

Block Storage Location from further posting

1. You can block the storage location of a material without affecting the rest of the location using
the same material.
Create a Physical Inventory document for the storage location with transaction MI01

Select the Posting Block checkbox.

This would prevent transactions from occuring until you either post or delete the physical
inventory document.
(There are no impact, unless you do a post difference for the physical inventory document.)

2. Another method is to rename the storage location name.

Go to transaction OX09
Edit -> Copy as (copy the original storage location to a new name, replacing the first character
e.g. ZXXX)
Edit -> Delete (delete the original storage location)

Do the reverse if you want back the original storage location.

Explain About Material Group

If you look at from business perspective, you will find that many materials of same material
type could be different from each other. For example, in a steel plant both iron ore and coal
would be raw materials. But if you want to further differentiate them then you can create
material groups as ore and fuel or coal etc.

Define Material Group

T. Code: - OMSF
Path: - SPRO >> Logistics – General >> Material Master >> Settings for Key Fields >> Define
Material Groups.
Select existing material group and click on Copy As button.
Enter material group code, material group name and long description for material group.
Then click on save button for save material group.

Advantage of Material group’s

It is used to group together several materials or services with the same attributes, and to assign
them to a particular material group.
You can use material groups to:
- Restrict the scope of analyses
- Search specifically for material master records via search helps
It can be assigned in material master in Basic Data1 (Client level) and Purchasing (Pur org
level) views.

What is the difference between customer group & customer pricing group as well as
material group & material pricing group?

Both can be used for reporting and analyse purpose. To determine the pricings with different
combinations in terms of material and customer, Customer and Material pricing group will be
used.

If you look at some of the sample customer groups / material groups in SPRO, you could
understand its usage.

Customer group:-

Used for statistical and reporting purposes. For example, domestic sales customers, International
sales customers

Customer pricing group:-

Bulk buyer / wholesale buyer and Individual buyer can have different pricing criteria in
business. This can be achieved using this. This is mainly used in pricing.

Material group:-

Material groups enable you to classify and structure your entire merchandise assortment at
multiple levels (breadth and depth). Every material is assigned uniquely to one material group
across the whole corporate group.

In particular, material groups allow you to: perform structured analyses in the Information
System; plan target and actual values; and store common data (such as conditions) at higher
levels. Its mostly used in SAP retail.

Material pricing group:-

Material prices can be classified with this. You can have different discounts / rebates according
to material group. It can also be used in taxes.

Transaction MM50 to Extend a Number of Materials

How to used transaction MM50 to extend a number of materials from one plant to
another?

By: Christopher

Yes, MM50 will allow for you to create materials into new plant codes or even sales orgs and
distribution channels.

I recommend extending one of your materials manually with generic settings or settings that you
can lookup easily for mass changing via LSMW or MM17.

Second, you need to open transaction MM50.

Input the Maintenance status's that you need for all of your materials going to the new plants .

So for example of you need views MRP1, 2 3 & 4 along with Costing 1 & 2 you would choose D
for MRPviews and G for Costing views.

Then enter in the target plant that you want to extend to.
If you also want to extend materials to additional sales org's and distribution channels do that as
well.

Enter in the materials that you want to extend and click the execute button.

-----------------------

The system will pull up all of the options that are currently NOT allocated to the material master.
Click the select all button.
Click the "Reference / organization" button.
- The material that I recomended that you setup with generic settings put that material code here.
- Input the copy from plant that you gave the generic settings to.
- Input the copy from Sales organization (If you are extending to V (sales org) views).
- Input the copy from Distribution Channel ((If you are extending to V (sales org) views).
- Click the continue button.
You are ready to start the extension process. If you have a macro that you can program this can
be helpfull here because if you have a large number of materials and views to extend your index
finger is going to be tired from hitting the enter buttion a few million times!

Once you click maintain the system will step in to the first set of views. The views are orgainzed
by the letter codes (maintenance status) and will go from A to Z in assending order so be
surprised when Costing views are being setup before Workscheduling and so on.

Also views like purchasing and sales have a text field assigned to them. Typically for the views
that do not have text views tied to them will let you just hold the enter key in and it will
automatically save, but when you have a set of views like purchasing or sales that have a text
view as part of this group the "holding down of the enter key" will not work and you will need to
figure out how to click save or CTRL+S when you reach these views.

Bottom line it is like MM01 except it cycles thru each set of view for each material until finished
with that set of views then moves to the next set of views.
Ex: Will finish MRP views for all materials before moving onto the Costing views.

Step-By-Step Procedure Of Configuring Split-ValuationTo

used split valuation, you have to activate it using 'OMW0'.

To change split material valuation once it has been set, you must

1. first post out all stocks (for example, to a cost center or with movement type 562)

2. then change the control parameters

3. if necessary, change the automatic account determination

4. finally post the stocks back in again

In split valuation, you can distinguish between partial stocks of a material according to certain
criteria and valuate them separately.

The material stock is divided according to valuation category and valuation type.

The valuation category determines how the partial stocks are divided, that is, according to which
criteria.

The valuation type describes the characteristics of the individual stocks.

With the function "Setting" you can determine:

- which valuation categories exist in your company (global categories)
- which valuation types exist in your company (global types)
- which valuation types belong to which valuation category
- which valuation categories exist in a valuation area (local categories)
Your entries are only relevant if you set split valuation as active in the function "Global
settings".

In the standard SAP R/3 System, the following valuation categories are default settings :

B procurement type

with the valuation types:

"EIGEN" for in-house production

"FREMD" for external procurement

H Origin

X automatic valuation (only for batch)

To select split valuation ('OMWC'), proceed as follows:

1. Determine the valuation categories and valuation types that are allowed for all valuation
areas:
- global valuation categories via menu "Goto --> Global Categories"
- global valuation types via menu "Goto --> Global Types"

2. Allocate the valuation types to the valuation categories.

a) Select "Goto --> Global Categories".

b) Position the cursor on a valuation category and select

"Goto --> Global Categories --> Assignments --> 'Types->Category'".

c) Activate the valuation types you want.

3. Determine the local valuation categories for each valuation area.

a) Select "Goto --> Local definitions".

b) Position the cursor on a valuation area and select

"Goto --> Local Definitions --> Allocate Categoires->Org.units (button Cats->(OU)".

You obtain a list of the global valuation categories.

c) Activate the categories to be used in this valuation area.

The system creates the local valuation types based on the allocations under point 2.
Only now can you create a master record with split valuation.

Specifying Split Valuation by creating Material Subject to Split Valuation

1. Create a material master record, selecting the Accounting View 1.

2. Enter your data as required on the Accounting data screen, specifying a valuation category.
(If you can't find the valuation category field, it might be hidden, use OMSR to define the Field
Groups.
Look for the field MBEW-BWTTY for Valuation category).

3. Be sure that the price control indicator is V for moving average price and enter a moving
average price.

4. In the case of split valuation, you can create only one valuation header record with price
control V because the individual stock values are cumulated, and this total value is written to the
valuation header record. This is where the individual stocks of a material are managed
cumulatively. To do this, fill in the Valuation category field on the accounting screen when you
create the material master record and leave the Valuation type field blank.

5. Save your data and the system creates the valuation header record.

6. The initial screen appears.

7. Extend the material by creating new material master records from the Accounting view 1. For
the first material, specify a valuation type in the Organizational Levels dialog box and enter the
respective accounting data on the data screen.

Proceed likewise for the other materials, distinguishing between them by valuation type. To do
this, call up the material in creation mode again. Due to the fact that a valuation header record
exists, the system requires you to enter a valuation type for the valuation category.

8. Repeat step seven for every valuation type planned.

You want to valuate the stock of material XYZ that you obtain from manufacturer A in Los
Angeles at a different price than the stock you obtain from manufacturer B in Detroit. In this
case, the valuation category is H for origin. Your valuation types can be LOS ANGELES and
DETROIT.

If a material is subject to split valuation, every quantity (sub-stock) of this material must be
assigned to a valuation type (for example, country of origin).

For every valuation type, there are two types of data in the system, as follows:

Valuation data (for example, valuation price, total stock quantity, total stock value), which is
defined for every valuation type at valuation-area level and applies to all dependent storage
locations.
Stock data, which, like batch data, is managed separately for each storage location. If a material
that is subject to split valuation is also subject to management in batches, its stock data is not
managed by valuation type, but rather by batch. Every batch is assigned to a valuation type.

The stock quantity, stock value, and valuation price for all valuation types are managed
cumulatively at valuation-area level.

Must the Valuation Type Exist Before the First Goods Receipt?

You can post the goods receipt of material of a certain valuation type only if the valuation data
for this valuation type already exists, because the system valuates the goods receipt at the price
defined in the valuation data. On the other hand, the stock data for the valuation type is created
automatically during the first goods receipt into the storage location, if this is defined in
Customizing for Inventory Management.

Goods Movements with Materials Subject to Split Valuation

If you want to enter goods movements for materials subject to split valuation, you must enter the
valuation type in addition to the material number.

Enter the valuation type in the Batch field for MB01.

In MIGO, there is a valuation type field in Detail data -> Material.

How to Change Valuation Class in Material Master

How to change valuation class, even if all the stocks are zero and there is no pending orders
as well?

Option 1:
Goto tcode MMAM - This tcode is for changing the material type and not valuation class.

If you change the material type in MMAM transaction automatically the valuation class will be
changed in material master. The system will take the changed material type valuation class
which was created for that material type.

Option 2:
Goto tcode MM02 - Accounting View 1 - This tcode is to change the valuation class directly.

Whether you can or cannot change the valuation class directly without changing the material
type depends on your own company img settings.

If you want to change the valuation class, there may be because of one or more of the following
already exist for the material:

1) Valuated stocks in the current period or in the previous period.

2) Open purchase orders may be there.

3) Production orders which a goods movement has already taken place.

For this first you have to do the following:

If valuated stocks already exist, you can change the valuation class only:

a) Post the stocks of the material to an interim account.

b) Change the valuation class in the material master record.

c) Post the stocks of the material back to their original account.

If open purchase orders already exist, you can only change the valuation class if you first flag the
corresponding purchase order items for deletion.

If production orders exist for which a goods movement has already taken place, you can only
change the valuation class if you first set the status of the production orders to deleted

By this you can keep the same material type as FG and can assign the proper valuation class.

Changing Base Unit Of Measure (Material Master)

How to change the base unit of measure of a material when we already maintained already
some stock?

Tips by: Dvj

Before changing the unit of measure is there any stock of that material avaiable?

Base unit of can't be changed once you have created the material and there are stocks.

Any successful changes in material master only took place when there is no open document from
SD, PP, MM & FI for that material.

Base unit of measurement cannot be changed. The reason being material movement history is
there in table - MSEG mainly which otherwise create inconsistency in reporting.

Instead, create new material and build stock by process in new and old materials.

1) You can only change the base units of measure under the following circumstances:
- No stocks are available for the material.
- There are no existing purchase requisitions, purchase orders, or scheduling agreements for the
material.
- At present, no purchase orders or purchase order items are being created or changed. If
requests for quotations, purchasing info records, or contracts are available for a material, the
system gives a warning while changing base unit of measure. Still if you want to change unit of
measure specify in a dialog box the factor for converting the base unit of measure into the new
base unit of measure. The purchasing info records are then, if necessary, updated.

2) If there are Open purchase requisitions, purchase orders, or scheduling agreements for
the material.
--Run MM02 (Change Material Master immediately.
--Overwrite the old base unit of measure with the new one in basic data screen.
--Save the change.
--System checks

If a change criterion (MM02) is meeting all necessary prerequisites (as mentioned in point 1),
system allows changing base unit of measure. Otherwise it displays warning or error. You can
display the reason for this, by choosing Display Errors (ctrl+F1)

Points to note:
You can change the base unit of measure if there is no stock of the material during current
and previous period. Also, there should not be any open PO's & requistions.

SAP help describes in the following manner about change of unit of measure which is self-
explantory:

Diagnosis: You wanted to change the base unit of measure. However, you can do so only under
certain circumstances, including the following:

- If there are no stocks of the material in the current period and in the previous period.
- If there are stocks in the previous period, you can clear them as follows:

a) Post the stock in the previous period to the current period (for example, using movement
type 561 Posting date 30.06.XX ) so that the stock for the previous period is the same as the
stock for the current period.

b) Clear the stock with the posting date in the previous period (for example, using movement
type 562 Posting date 30.05.XX).
- If no purchase requisitions, purchase orders, or scheduling agreements exist for the material.

Procedure : Choose *Display errors* to see why you cannot change the base unit of
measure for this material.

The pushbutton *Display errors* appears only in dialog mode, not in data transfer or in mass
maintenance. If this message appears in data transfer or in mass maintenance, and you want to
know why the base unit of measure cannot be changed, access the material in dialog mode using
the relevant transaction below, try to change the base unit of measure as required, and then
choose *Display errors*:
Lastly, you can considered an Alternate Unit of Measure to do the Conversion from KG to Liter.
You then could use your Alternate Unit of Measure as your
Purchased UoM and PLant UoM.

Given the level of activity sometimes required to change the base UOM, it often makes
more sense just to add an alternative UOM on the material master.

Maintain the relationship between the Base UOM and the new UOM on the material master and
then continue to procure the material in the new UOM rather than the base UOM. If stocks exist
I would think it is unlikely that their existing UOM is incorrect as they must have been receipted
in that UOM at some point.

In summary:
In the Material master you can maintain the Units of measure IN Material master,
- Base unit of measure in Basic data View,
- Purchase Order Unit in view purchasing (need to activate Variable order unit)
- Sales Order Unit in view sales org 1
- Unit of Issue in view Plant/storage data1

Maintain the conversion factors for all the Unit of measures used.

How to use Negative Stocks and its purpose

Please advise me, how to use negative stocks. Mainly for what purpose this concept is used.
What settings are required to do for mainaining negative stock.

Negative stocks can be utilized for a number of different business scenarios, for instance:

1. If a material shipment is going to a customer, but the production has not yet confirmed (and
there is not enough stock on hand to satisfy the requirement), instead of getting the "deficit of
stock..." message when doing the issue for the delivery, the system will allow you to issue the
material, and your inventory will show a negative quantity until the production confirmation is
performed.

2. I had a client who used this functionality to track component usage for their subcontractors.
They would confirm production for an entire month for the FERT materials produced by the
subcontractor. Starting the month with zero stock for all components, then at the end of the
month the value of the component stock (disregarding the negative sign) would be deducted from
the amount they owed for the services performed. In this agreement, the components were "sold"
to the subcontractor but no invoicing ever took place for the components. Just a word of caution
...negative stocks/values for materials can raise many questions for accounting purposes at the
end of fiscal periods.
There have been several reasons for using the negative stock functionality subject to the specific
business requirements of your industry. For us, we have decided to use this negative stock
feature due to the following reasons:

1) Sales of finished products to customers. We are cement producer and in an effort to avoid any
delay in selling our products to our customers, we determined to allow negative stock posting
since it is of our cement industry that cement after being packed will be delivered directly to our
customers ie. no temporary storage is required.

2) The alignment of inventory/stock movement with production process where due to some
reason, the reception of raw materials and/or consumables was not maintained on time resulting
in interruption of process order confirmation.

Can someone tell me what is the effect of negative stocks in material valuation, ie. moving
average?

As you know negative stock will have negative value, which will have direct impact to
financials. Say you have a material of Qty 10 Each, total worth $ 10.00 in stock and since you
enabled negative stock in system ( valuation area level and plant- storage location level ) if you
try to issue stock of say 20 Eaches, system will show stock of negative 10 and value $-10.00.

After that if you try to do goods receipt of say 20 eaches, of total value 20.00 material will have
original status as you started. But if the value is different say 25.00, then moving average will be
arrived from $15.

Why my stock is having negative stock value. The stock qty is 0. When I want to do GR, the
system issue and error message saying my stock is negative. How can I do bypass it.

My assumption was that you are using MAP (Moving Average Price) Price Control for your
material and that there was a price difference between IR value and GR value where IR value <
PO value. In this case, the price difference will be credited to your stock and since the price
difference value is in excess of your current stock value, this negative value took place.

Simple Walk Thru of Automatic Account Determination1)

Assuming that you are posting in a Plant.

The Plant is assigned in OX18 to a Company Code.

The Company Code is assigned in OB62 to a Chart of Accounts.

You take here the Chart of Accounts for your Company Code.
2) Under the IMG:
Materials Management -> Valuation and Account Assignment -> Account Determination ->
Account Determination Without Wizard -> Define Valuation Control - You define whether you
want your Plants to be grouped together or treated individually.

Then, in the next customizing step to "Group Together Valuation Areas", you can see to which
group you have assigned the Plant. This is the Valuation Grouping Code.

3) The Valuation class is defined in the Accounting 1 view of your Material Maser.

4) The account modifier is used in some posting keys like GBB, PRD or KON to subdivide the
account determination.

You can see in the activity "Define Account Grouping for Movement Types" the different
account modifiers to be used in these posting keys.

You need to know:

- The movement type.

- If you are posting into the special stock.
- If value update and quantity update are made (see the material type for the material in the table
MARA and then check OMS2 for the Plant).
- If you post with reference to a document (purchase order, etc).
- If you update consumption.

Once you have all this info, you can find the account in OBYC

SAP MM and FI Integration

FI-MM Integration

Process Flow in MM

Step 1 Generating purchase requisition( PP-MM involved)

Step 2 Making inquiries (MM)

Step 3 Raising purchase order (MM)

Step 4 Release of purchase order ( MM)

Step 5 Goods received from vendor ( MM and FI )

Entry will be
Raw Material Inventory a/c Dr.
GR/IR clearing a/c Cr.
Step 6 Invoice verification and quality assurance (FI and MM)
Entry will be
GR/IR clearing a/c Dr
Vendor a/c Cr

Step 7 Goods issued for consumption(MM, FI and PP)

Entry will be
Raw material consumption a/c Dr
Raw material inventory account Cr

Step 8 Production receipt( FI, MM & PP)

Entry will be
Finished goods inventory a/c Dr
Change in stock Cr

Step 9 Finished goods delivered to customer(MM, SD & FI)

Entry will be
Change in stock Dr
Finished goods inventory a/c Cr

Step 10 Raising invoice on customers( SD & FI)

Customers a/c Dr
Sales a/c Cr

Step 11 Receipt of payment from customers( Same as SD-FI integration)

CUSTOMIZATION STEPS

Main screen of FI-MM integration is OBYC

Here we have to link the MM movement types to FI G/L accounts

Assign Following G/L accounts to movement type according to valuation class.

BSX- Raw material Inventory account
GBB- Raw material consumption account
WRX- GR/IR clearing account

SAP MM Tables Link and Flow

MM flow is processing between business organisation and Vendor:

1...Purchase Requisition --- T.code ---ME51

2...Source List -----T.code-----ME41

3...Request for Quation (RFQ)---T.code--ME21N (To Vendor)

4...Purchase Order ---- T.code ----ME21N (To Vendor)

5...Goods Receipt-------T.code....MIGO
(Tables: MKPF, MSEG)

6...Invoice Verification----T.code...MIRO
(Tables: BKPF , BSEG)

7...Vendor Payment----T.code...FB60 (FI - Account Payable)

MM Table Link: