Materials Management

Intercompany stock transfer process in SAP is a process of transferring goods between two plants belonging to different company codes. The process involves creating a stock transport order (STO) in SAP ERP system. The STO is a document that contains information about the goods to be transferred, such as material number, quantity, and delivery date. Once the STO is created, it is sent to the receiving plant for processing. The receiving plant then creates a goods receipt (GR) against the STO when the goods are received. Finally, an invoice is created by the supplying plant and sent to the receiving plant for payment.

In this document, following scenario is covered in detail with screenshots:

• Customer places order to depot or salesman. Depot in charge forwards the order to corresponding sales in charge
• All such orders from customers (against a depot) and from depots are to be cumulated and entered in SAP. Use Transaction code – ME21N.
• Warehouse in charge reviews the pending order report. Use transaction VL10I. The report displays the delivery quantity along with stock available quantity.
  Warehouse in-charge decides the order to be executed today and create delivery document directly from pending order report.
• Packing in charge reviews the packing due list report VL10P. He then selects the delivery order and allocates carton nos. & PI no. to delivery document nos. He creates a packing instruction in SAP.
• SAP packing instruction is handed over to packer for packing.
• After packing a single carton or multiple cartons, the packing instruction sheet with actual packing contents is handed over to SAP user.
• SAP user makes packing modification where required in SAP and prints packing slip.
• Packing slips are inserted in the corresponding cartons and cartons are placed in loading bay.
• After all cartons are placed in loading bay, invoice in created in SAP using VF01 and vendor posting is done using MIRO. All relevant documents are printed and handed over to driver.

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Third-party procurement is a process where a company purchases goods or services from a third-party supplier instead of producing them in-house. In SAP third-party procurement is carried out in the components SD (Sales and Distribution) and MM (Materials Management). By creating a third-party item in a sales order, purchase requisition, or purchase order, you can request that the vendor sends the goods directly to your customer.
Created for an S/4 HANA implementation project, in this document following steps are covered for the procurement of Third Party in SAP.

• Purchase Requisition will be generate during sales order creation.
• Conversion of the approved Purchase Requisition to RFQ
• Maintain RFQ
• Price Comparison
• Conversion of RFQ in Purchase Order.
• Approval of PO by the Concerned Purchase Manager
• Goods receipt for the PO.
• Vendor Invoice Entry for the PO

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In SAP, A consumable material refers to a material that is subject to a procurement transaction and whose value is recorded in the cost element or asset accounts. Consumable material is thus procured directly for an account assignment object. Examples of consumable materials are office supplies and cleaning supplies.
Created for an S/4 HANA implementation project, in this document following steps are covered for the procurement of consumables in SAP.

• Creation of Purchase Requisition Manually
• Approval of Purchase requisition by the Concerned Department Manager
• Conversion of the approved Purchase Requisition to RFQ
• Maintain RFQ
• Price Comparison
• Conversion of RFQ in Purchase Order.
• Approval of PO by the Concerned Purchase Manager
• Goods receipt for the PO to Quality or Unrestricted
• Vendor Invoice Entry for the PO

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In SAP, vendor evaluation is defined ranking vendors based on different criterias by checking performance of vendors . The vendor with highest rank is chosen for procurement activities.
In this document, you will find steps required to maintain vendor evaluation in SAP;

• Step 1 – Define Weighting Key
• Step 2 – Set Main Criteria and Subcriteria
• Step 3 – Assign Criterias to Organization Data
• Step 4 – Maintain Weighthing Key to Organization
• Step 5 – Define Scope of List
• Step 6 – Enter Score for Vendor Out of 100 (ME61)
• Step 7 – Check Ranking List of Vendor (ME65)

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This configuration document will take you through to steps required customizing Materials Management module in SAP, specialised for Steel Industry. A similar SAP MM Configuration Guide for steel industry can be found here. The following steps are outlined in this document:

• Configuration for MM Organization Structure in SAP
• Configuration for MM Master Data
• Configuration for Purchasing in SAP MM
• Pricing Procedure for Purchase Order in SAP MM
• Automatic Account Determination
• Version Management in Purchasing

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