SAP MM (Material Management)
What is ERP?
Enterprise resource planning (ERP) is a business process management software that
allows an organization can use to collect, store , manage and interpret data from
many business activities i.e. its stores & integrates data in single platform
maintained by a database management system.
E Enterprise > an Organization
R Resources > Money Man Power Material & Machine
P Planning > Systematic approach to achieve business requirements
Why we need ERP?
ERP is used for integration of system business process
Standardization of system across business locations
For overall control of organization
Better controlling & reporting systems of different business processes
Best utilization of Money Men Material & Machine
Types of ERP Systems;
1. Decentralized System (Non ERP System)
2. Centralized System (ERP System)
1. Decentralized System:
Decentralized system is a NON-ERP based system where data is maintained locally
at individual departments with no access to other departments. There are no
advantages in this system
Disadvantages:
No real time information & time consuming
Loss of revenue & customer satisfactions
Data maintenance cost goes up
Material & inventory cost increases due to non-tracking of Inward & outward
flow of material
Increase in man power & labor costs
Loss of reputation & face legal actions
2. Centralized System:
Centralized system is an ERP based system where data is maintained at central
location and is shared with various departments & each department has access to
information/data to other departments.
Advantages:
Real time information is available in fraction of seconds & time saving
Increase in revenue & customer satisfaction
No data duplication
Less man power & decrease in labor cost
Payment transactions to vendors on time & no legal issues
ERP Packages:
Around 500+ ERP softwares systems are currently being used in market and
below are list few;
SAP All Modules
Oracle Fusion FICO
Peoplesoft HR
SIEBEL CRM (Customer Relationship Management)
JD EDWARDS Manufacturing
BAAN Manufacturing
RAMSCO Systems
Tally
Microsoft Dynamics
SAGE Systems
Introduction to SAP
SAP System Applications & Products in Data Processing) is one of the ERP
(Enterprise resource planning) package available in market to manage, integrate
business operations and customer relations. It was founded in 1972,Germany
(Europe) by former employees of IBM - Dietmar Hopp ,Hans Werner Hector, Hasso
Plattner, Klaus Tschira, Claus Wellenreuther.
SAP Advantages:
Integration is very easy between different modules
Client-Server architecture is very strong and more reliable
Supports any operating system (Windows/Unix/linux)
Supports any database (Oracle/RDBMS/SQL/HANA)
Supports around 40+ languages worldwide
Any client business requirements can be developed by programmer i.e. ABAP
(Advanced Business Application Programming)
SAP Disadvantages:
License cost is high
Consultation charges are high
Evolution of SAP versions
1973
1976
1979
1992
SAP
SAP
SAP
SAP
R/98
GmbH
R/2
R/3
Current version is SAP R/3 ECC 6.0 EHP 7
R/3 Real Time / 3 Tier Client Server Architecture
ECC ERP Central Component
EHP Enhancement Package
To view version: Systems (in MENU BAR) > Click STATUS
Modules of SAP
Below are modules are integrated via SAP R/3 Client Server Architecture
FICO Financial Accounting & Controlling
HR Human Resource
SD Sales & Distribution
MM- Material Management
PP Production Planning
QM Quality Management
PM Plant Maintenance
AA Asset Accounting
PS Project System
WF Work Flow
IS Industry Standard (Retail,Banking,Utilities, Real Estate, Mining)
WM Warehouse Management
EWM Extended Warehouse Management
APO Advanced Planning Optimization
SCM Supply Chain Management
CRM Customer Relationship Management
SRM Supplier Relationship Management
Classification of Modules
Functional Modules: FICO, MM, SD, PP, HR, CRM, SRM, SCM
Technical Modules: ABAP, Net weaver or BASIS, BI/BW
In real time, SAP Login credentials will be provided by BASIS team
SAP Easy Access screen restricted to END USER only without TOOLS folder
(Customization Part)
SAP Consultants & ABAP team assigned for a particular project will carry out
Business transaction customizations as per End User business requirements.
Customizations will be carried out in tcode SPRO Execute Project which is
available in below path.
Tcode SPRO:
SAP Easy Access > Tools > Customizing > IMG (Implementation Guide) > SPRO
Execute Project
SPRO SAP Project Reference Object
Blue print of MyHome Company
Central Pur
Org
CCPO
India (777)
MyHome
Cement
(MHCEM)
Comp Code:
MHCM/1000
MyHome Power
(MHPOW)
MyHome Const
(MHCON)
Comp Code:
MHPO/2000
Comp Code:
MHCN/3000
Kodada Plant
Vizag Plant
Plant Code:
MCKP/1001
Plant
Code:
MCVP/100
Raw 1.
Material
Spare
Parts
Store Code:
KPS1/0010
Store
Code:
Koda Pur. Org.
Vizag Pur.
Org.
Code: KPPO
CLI
EN
T
MyHome
Group
Ranga Reddy
Plant
Hyderabad
Plant
Plant Code:
MCRP/1003
Plant Code:
MPHP/2001
Semi Finished
Part
Store Code:
KPS3/0012
PL
AN
T
Finished
Goods
Hyd Stores
Store Code:
HPS1/0040
Store Code:
KPS4/0013
RR Pur. Org.
Hyd Pur. Org.
Code: RPPO
Code: HPPO
Code: VPPO
Koda-Vizag Cross
Plant Pur Org
Code : KVPO
Raw
Material
Store Code:
VPS1/0020
Finished
Goods
Store Code:
VPS2/0021
CO
MP
AN
Y
RR Stores
Store Code:
RRS1/0030
0
Hyd-RR Cross
Comp Pur Org
Code : HRPO
ST
OR
ES
Pur
cha
se
Org
ani
zati
on
Silent features of Enterprise structure in SAP
Client Code Max 3 digit code (Ex : 000/001 Master Client , 066 Early
Watch Client , 800 Training client)
Company -Max 6 digit code
Company code Max 4 digit Code only
Plant code - Max 4 digit Code only
Storage location code - Max 4 digit Code only
Purchase Organization code - Max 4 digit Code only
Company,Plant,Store,Purchase Organization can be Numerical, Alphabets, or
Alpha-Numeric not more than 4 digits
Company code should not be same for different companies
In a company, one plant code should not be used for another plant in same
company.
We cannot use same plant code for another plant in different company
A company is an organizational unit in Accounting which represents a business
organization according to the requirements of commercial law in a particular
country.
Define Company tcode : OX15
Edit, Copy, Delete, Check Company Code t code OX02
Define Valuation Level : tcode OX14
Define, Copy, Delete, Check plant tcode : OX10
Maintain Storage Location tcode OX09
SAVE
Click New Entries
Maintain purchasing organization tcode OX08
Assign company code to company t code OX16
Assign Plant to company code t code OX18
Assign Purchase organization to company code t code OX01
