Explanation For Creating Material Master Record
What is MMR (Material Master Record)?
MMR is a data record containing all the basic information required to manage a
material.
It's a master record maintained in the system that contains all the specific data
relevant to a material.
Number Assignment:
MMR can have either internal or external number range assigned as per the
configuration done at the time of implementation.
Material type:
Materials which have similar characteristics are grouped under the same material
type.
Material type controls
1. Number range
2. Screen sequence
3. User departments/ views
4. Type of procurement
5. Internal or external number assignment
Material valuation:
- Standard price procedure - price control is "S"
- Moving average procedure - price control is "V"
1) Transaction codes used with MMR are as follows:
a. Change MMR - MM02
b. Display MMR- MM03
c. Materials List - MM60
d. Schedule changes - MM14
e. Display changes -- MM04
f. Change material type - MMAM
g. Mass maintenance - MM17
h. Flag for deletion - MM06
i. Maintain storage locations - MMSC
j. Extend Material views - MM50
2) Example of a step by step to create Material master record.
Internal number assignment is considered here.
Key in Transaction code MM01 in the command field.
Select Industry sector is Mechanical Engineering and material type is Raw
Material ROH
Press Enter
Select views
Basic data 1
Basic data 2
Purchasing
General Plant data
Accounting 1
Click on check symbol or press Enter
Key in plant and storage location codes in the populated screen then press Enter.
Enter description of the material (e.g. Ball bearing with specification), base unit of
measure, material group
Press enter, basic material is e.g. steel
We are maintaining the mandatory fields first then additional fields.
In purchasing view select purchasing group "001".
Press enter and in the next screen of accounting view 1 enter Valuation Class as
e.g. 3000 and any standard price then on saving it MMR is generated.
New Material is now created in the given Plant.
Difference Between Client , Purchasing Org , Plant ,
Company code
What is the technical difference between Client , Purchasing Org , Plant ,
Company code?
Client : Unit within SAP system, self-contained, separate master data with
independent set of tables. It represent corporate group.
Company Code : Smallest organisational unit of external account for which a
complete, self-contained bookkeeping system can be replicated. eg, company
within a corporate group.
Plant : An organisational unit within logistics, subdivides an enterprise from the
viewpoint of production, procurement and materials planning.
Purchasing Org : Organisation within logistics which subdivides an enterprise
according to purchasing requirements.
The procurement business process uses this organisational structure:
Client--->Company Code--->Plant--->Storage Location--->Purchasing Org/
Purchasing group
SAP MM Tips by : Mabaile Mashao
The standard procedure for creating a new plant in SAP:
SPRO -> Enterprise Structure -> Logistics - General -> Define, copy, delete, check
plant
Maintain Plant
Plant 0001 is the SAP default.
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.
Material Master - Introduction
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.
Maintain the 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
Screens in Material Master
MM01 - Create, MM02 - Change, MM03 - Display and MM06 - Flag for
deletion.
MM04 - Display the changes done to the material master.
MMAM - Change the Material Type. for e.g. from FERT to HALB
Configure the Material Master Screen MM01 / MM02 / MM03
OMSR - Assign the field to the field group
OMS9 - Maintain the data screen field
Unit of Measure
In the material master, there is a Units of measure button for users to store in the
different conversion rate. This sample program (ZUNT) extract the data from the
unit of measure conversion table.
In the Material Master the moving average price are affected by:-
Goods Receipt for Purchase Orders
Transfer from Plant to Plant
Invoice Receipt
Settlement
Price Change
Common configuration changes-
define new material group (OMSF)
define new valuation class (OMSK) and automatic posting (OBYC)
define new material account assignment group (transaction OVK5) and
Customer/Material/Account keys (transaction VKOA)
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
Create Delivery Log - Material xxx is blocked
During the Create Delivery (VL01), SAP prompt you a log that Material xxx is
blocked.
During the Sales Order Create/Change for that material, there might be some
update termination that causes the locked of the material (Windows hanged or
power failure).
You can check using transaction SM12 - type an "*" at the User name field.
Check whether the material is in the locked list.
If it is in the locked list, asked the user to log out before you delete it from the
locked list.
Maintain Storage Location
MMSC - Collective entry of Storage Location for a material.
Insert new or delete un-used Storage Location.
Maintain whether the storage location was included or excluded from MRP run.
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.
Accounting document number range for MM
Transaction OMW9
Document Type - Double click on desire transaction code to check the document
type for number range.
(e.g. MR21 Document type - PR)
Financial accounting document type - Assign the document type to a number
range and account type.
(e.g. PR - Account type allowed for posting
will be MS)
Double click on the document type PR.
Assign an unique starting number range that was not used. e.g. 88
Choose the Account type for Material and G/L account (MS)
The rest of the fields are optional (you can leave it as blank)
SAP definitions for account type -
A - Assets
D - Customers
K - Vendors
M - Material
S - G/L accounts
Number ranges for financial accounting document type - Assign the number
range to the running number range.
No. Year (till) From number To number Current number Ext (no
tick internal or tick external)
88 9999 8800000000 8899999999 Track by SAP Blank
Accounting document will be generated if there are stocks during price change, if
you don't have any stocks, no accounting document will be generated as there are
no inventory to revaluate for price differences.
Valuation Class for Material Group
In 4.6x and 4.5b, you can assign valuation class to Material Group.
It is useful in the sense that user do not have to manually do an Account
Assignments.
For stock items, valuation class cannot be changed whenever the stock on hand is
not zero.
Valuation class are tied to a G/L account.
A change of valuation class means a change of G/L account.
In FI concept, you have to debit and credit to balance the G/L account. That is
why your stock must be zero before the system allows you to changed the
valuation class. If it is not zero, you have to either transfer it to another material or
do a dummy issues. After changing the valuation class, do a reversal entries for
the stocks which you have transfer out or you have done a dummy issues.
IMG - Material Management -> Purchasing -> Material Master -> Entry aids
for items without a Material Master
G/L Accounts in MM Account Determination
The program RM07C030 check all the G/L account define in your Material Master
valuation class.
Search is via Company code and Valuation area.
Compare fields status for movement types against General Ledger
