SAP MM Configuration [181 Pages PDF] – Free Download

This 181 pages PDF document provides a comprehensive guide on configuring the SAP Material Management (MM) module within the SAP ERP system. It is aimed at professionals looking to understand or implement SAP MM functionalities in their organization’s SAP landscape. The document covers a broad range of topics, from basic configurations to advanced settings, ensuring that the reader gains an overall understanding of SAP MM’s capabilities and how it integrates with other SAP modules for efficient material management.

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SAP MM-FI Integration Notes

This document provides an overview of the key SAP configurations required to enable automatic posting of inventory and valuation movements to the appropriate general ledger (G/L) accounts in SAP Material Management (MM). It focuses on the FI-MM integration and setup needed for inventory postings.

Key configuration steps reviewed under FI-MM integration are:

  • Chart of Accounts – Defining the G/L account master data
  • Valuation Areas – Setting up valuation level for plants/company codes
  • Valuation Grouping Codes – Grouping plants with same account determination
  • Valuation Classes – Linking G/L accounts to materials
  • Account Groupings for Movement Types – Settings for movement type postings
  • Automatic Posting Configurations – Mapping valuation classes to G/L accounts
  • Movement Type Customization – Allowed transactions, account groupings etc.
  • Examples – Posting inventory movements with standard and custom movement types

The document walks through configuration transactions like OBYC for linking valuation classes to G/L accounts, valuation area and grouping setup, and movement type settings. It provides examples of performing a standard 561 movement for initial stock postings as well as creating a custom movement type.

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Inventory Management in SAP: Overview Presentation

This document provides an overview of inventory management concepts and processes in SAP. It begins by explaining the movement type, a key idea in SAP inventory transactions. Movement types categorize and control various material movements like issues, receipts, and transfers. The document then covers the document principle, whereby every goods movement generates a material document and usually an accounting document for tracking.

Next, the guide examines common inventory types seen in SAP:

  • Raw materials – Used in production, undergo physical change
  • WIP (work in process) – Materials currently in production
  • Finished goods – Completed products ready for sale
  • Spare parts – Used for repairs and maintenance

Other inventory categories like consignment stock are also explained. Consignment refers to inventory stored with a customer but still owned by the supplier until consumed.

Finally, the document overview major inventory costs:

  • Ordering costs – Expenses to place purchase orders
  • Carrying/holding costs – Costs to store inventory
  • Stockout costs – Costs if inventory runs out

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SAP MM Physical Inventory Process Manual: Document Create, Count and Difference Posting

This document provides a step-by-step guide to performing physical inventory processes in SAP. Physical inventory is the process of counting stock on hand and reconciling it to book inventory balances. This is critical for maintaining accurate inventory records and financial reporting.

The document breaks down into following main parts :

  • Creating, changing, and displaying physical inventory documents to plan and record counts
  • Entering inventory counts and making changes if needed
  • Performing recounts if discrepancies are found
  • Reviewing difference lists between counted and booked quantities
  • Posting differences to adjust inventory balances

The guide walks through end-to-end physical inventory procedures from initial document creation through executing counts, making updates, and posting adjustments. It provides transaction codes, screenshots, and step-by-step instructions for users to follow. Master data elements, required entries, and SAP navigation are explained.

List of transaction codes covered in the guide are;

TcodeDescription
MI01 Create Physical Inventory Document
MI02 Change Physical Inventory Document
MI03 Display Physical Inventory Document
MI04 Enter Inventory Count
MI05 Change Inventory Count
MI06 Display Inventory Count
MI11 Recount Physical Inventory Document
MI20 Display Difference List
MI07 Post Differences

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Physical Inventory Configuration Guide in SAP S/4HANA MM

This document provides an overview of physical inventory processes and configurations in SAP S/4HANA MM. It covers the need for physical inventory, different types of physical inventory, and the overall process flow. Key configurations like number ranges, movement types, and tolerances are explained. An example exercise demonstrates creating inventory documents, counting, posting differences, and reporting.

Key topics covered in the document:

  • Introduction to physical inventory and its importance
  • Types of physical inventory like annual, cycle, and perpetual
  • Physical inventory process steps
  • Key reports for physical inventory
  • Configuration settings like document numbers, movement types, freezing balances
  • Master data settings like inventory groups and tolerances
  • Exercise example to create documents, count, post differences, and check results

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Physical Inventory in SAP MM: Presentation Document to Understanding the Process and Key Steps

This document provides an overview of physical inventory procedures and best practices in SAP MM. Physical inventory involves physically verifying stock quantities on hand and is a critical component of inventory management and overall supply chain operations. This paper reviews key considerations when planning and executing physical inventory counts, including inventory procedures (periodic, continuous, cycle counting, sampling), blocking materials from posting during counts, entering and analyzing count data, handling differences and recounts, as well as system configuration to support the physical inventory process. Insights are provided to help ensure accurate tracking of inventory through robust physical inventory protocols.

Key Sections covered in the document are:

  • Physical Inventory Overview: Defines physical inventory and its importance for inventory visibility and planning
  • Physical Inventory Procedures: Explains periodic, continuous, cycle counting, and sampling inventory methods
  • Physical Inventory Process: Details key steps for inventory preparation, count, and analysis
  • Entering and Analyzing Count Data: Covers entering results, handling differences and recounts
  • Configuration Settings: Highlights SAP customizing settings that support physical inventory
  • Examples: Includes sample transactions for creating physical inventory documents and posting differences

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Configuring PO Documents in SAP S4 HANA MM: Document Types, Item Categories, and Number Ranges

This document provides configuration steps for customizing the purchase order (PO) document type in SAP S/4HANA Materials Management (MM) module. It outlines how to define a new PO document type, restrict allowed item categories, link the document type to the purchase document configuration, define internal/external number ranges, make certain fields mandatory, and assign field selection keys. The goal is to configure a customized PO document type in SAP MM for handling special procurement types like subcontracting and consignment.

Key configuration steps covered in the document are:

  • Step 1: Define a new PO document type by copying the standard type and giving it a custom name
  • Step 2: Restrict allowed item categories for the document type
  • Step 3: Link the new document type to the purchase document configuration to specify valid item category combinations
  • Step 4: Define internal and external number ranges and assign to the new document type
  • Step 5: Make certain fields mandatory in the screen layout and assign a field selection key to the document type

The document provides a business scenario, explanations of configuration settings, and screenshots demonstrating the SAP configuration steps in detail. In summary, it covers the key SAP MM customizations required for setting up a specialized PO document type.

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SAP S/4HANA MM Pricing Procedure: Configuration Overview and Key Steps

This PDF document provides an end-to-end view of configuring a custom pricing procedure in SAP S/4HANA Materials Management (MM) module. The pricing procedure is used to combine different charges like gross price, freight, discounts, surcharges, taxes etc.

Following list of pricing procedure steps are covered in the document:

  • Setting up the calculation schema
  • Defining condition types such as taxes
  • Defining schema groups for suppliers and purchasing organizations
  • Assigning schema groups to purchasing organizations
  • Determining calculation schema for standard purchase orders
  • Assigning condition types to calculation schema
  • Assigning schema group to business partner
  • Validating pricing procedure in purchase order
  • Maintaining condition tables
  • Defining access sequences
  • Assigning access sequence to condition types
  • Maintaining condition records

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Special Procurements for MRP in SAP MM: General Overview Guide

This document provides an overview of special procurement types in SAP MM, which are used for specific procurement scenarios that differ from standard procurement. The key sections covered are:

  • What is special procurement and the role of the special procurement type key ?
  • Different special procurement scenarios:
    • Direct procurement
    • Subcontracting
    • Vendor consignment
    • Pipeline procurement
    • Withdrawal from alternate plant
    • Stock transfer

For each special procurement type, the document explains the purpose, configuration settings, and steps involved such as creating purchase orders, goods receipts, consumption postings, and settlement. Key transactions, movement types, and accounting entries are also listed for the different scenarios. Understanding these special procurement types allows handling non-standard material requirements that come up in planning and production.

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SAP MM-SD and SD-FI Integration Points

The integration of SAP modules is essential for efficient business operations. This article explores the key touch points between Materials Management (MM), Sales and Distribution (SD), and Financial Accounting (FI).

Integration PointDescriptionKey Considerations for SAP Consultants
MM-SD
Sales OrderSD triggers the creation of a sales order, prompting MM to check material availability in stock or initiate procurement.Ensure consistent pricing and data across MM and SD.
DeliveryOnce a delivery is created in SD, MM ensures the correct goods are picked, packed, and shipped to customers.Automate delivery processes to minimize manual interventions and errors.
Stock UpdatesAfter goods issue in SD, MM updates inventory levels and triggers relevant accounting entries.Implement regular stock reconciliation to ensure accurate inventory records.
ReturnsWhen returns occur, MM and SD work together to manage reverse logistics and stock updates.Establish clear and efficient return procedures to ensure timely and accurate processing.
SD-FI
Revenue RecognitionSD provides data on sales transactions, enabling FI to recognize revenue and record relevant accounts receivable.Configure revenue recognition rules in FI to align with your accounting policies.
Customer InvoicingSD generates customer invoices, with FI managing accounts receivable and subsequent cash entries.Automate the invoicing process to ensure timely and accurate invoices are sent to customers.
Sales TaxSD calculates taxes like VAT, and FI ensures proper accounting and compliance with tax regulations.Configure tax codes and rates in FI to ensure accurate tax calculations and compliance.
Credit ManagementSD’s credit limits influence FI’s credit exposure and bad debt provisions.Implement robust credit management policies and procedures to minimize risk and bad debts.

Implications for SAP Consultants

SAP consultants can help businesses achieve seamless and efficient business processes by:

  • Maintaining consistent and accurate master data across MM, SD, and FI.
  • Thoroughly testing end-to-end processes to identify and resolve any integration issues.
  • Encouraging cross-functional training to foster better understanding and collaboration between MM, SD, and FI teams.
  • Continuously optimizing MM-SD and SD-FI processes to enhance efficiency, reduce manual interventions, and boost productivity.
  • Staying abreast of SAP updates and advancements.

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