The SAP MM Module

A typical supply cycle for a service or an item includes the steps

following:

1 creation of a purchase request

The purchase request corresponds to the identification of a supply need; it can

to be input by a service or to be produced by the planning / needs calculation system.

Determination of possible sources of supply

For each purchase request, it is necessary to choose the supplier, that is to say, the source.
supply. The determination of supply sources is done based on a
directory, previous commands, and existing contracts.

3 creation of the order

The order can be created by converting a purchase request or by entry.

The order is transmitted to the supplier in the form of a purchase order.

4 receipt of delivery

The reception is done in reference to the order and allows for the stock entry.

When goods are received in a store, the available stock is increased.

Entries are recorded in the accounting in the inventory, purchase, and accounts.
invoice to be received.

5 supplier invoice control

This step allows you to record the invoice by checking its compliance with the
order and upon receipt in terms of price and quantity.

Note: Not all these steps are mandatory; for example, it is possible to enter a
order without purchase request, to enter an invoice without an order.

The types of procurement

Supply can be for stock or for direct consumption.

In the case of a supply for the stock:

The stock-managed items are placed in the store after a goods receipt.
order an item to put in stock,

The article must have a sheet.

In the case of a supply for consumption:

The purpose of consumption is indicated in the order by entering an allocation (by
example, a cost center).

It is possible to order an item identified by a sheet and an article code or to

place an order without an item sheet. These items, not having an item number,
are defined by a text and an assignment to a group of goods, both of which are
enter in the command.

Upon receipt, the item or service is considered to have been consumed.

consumer accounts in accounting are processed during entry of the
Reception. If the order concerns an item, the total quantity and value

Existing stocks of the item are not affected.

Supplier Data

The supplier database is shared among all departments of the company.

The supplier information is grouped by functional need.

General data

General information about the supplier, such as the address, the language, the
bank details, ...

Company data

Necessary information for accounting, such as, for example, the collective account,
payment conditions, payment methods, reminder procedures, ...

Purchasing data

Information managed by purchasing, such as the purchasing currency, the contacts,

the delivery conditions, ...

The company can be in relation with different partners:

recipient of the order

of payment. Each partner is created as a supplier; each supplier can
playing different roles;

It is possible to attach other suppliers to a supplier as partners.

Purchase Info Sheet

The info-purchase sheet contains the information related to an item from a supplier and
particularly allows for managing the rates.

For example: prices and terms, item number with the supplier, delivery time.
prévisionnel de livraison
Possible pricing conditions: base price, discounts and surcharges, transportation costs.

Each price condition has a validity period. It is possible to define prices

with a scale by quantity.

The data from the info-purchasing sheet is used as default data for the
orders.

A purchasing info sheet can be defined for each type of supply of an item:

Standard: for standard orders

Subcontracting: for subcontracting orders, the purchasing info sheet provides the price.
for example, to assemble a sub-assembly.

Consignment: when an item is made available by a supplier, on the premises

Of the company, the info-purchase sheet contains the price for the departure of goods from the
consignment stock.

The info-purchase sheet also allows buyers to quickly determine:

What items were previously supplied by a specific supplier?

Which suppliers provided an item.

We need to define a standard model batch, allowing for referencing and a benchmark on the
Rates to adopt based on quantities.

General flow

Order taking

The purchase order allows communication with a supplier or a

division, the order to deliver a certain quantity of goods by a given date.

An order consists of a document header and several items.

The header information pertains to the entire order. This includes, for example, the
payment and delivery conditions.

The positions identify the articles or goods.

Information managed in the order:

Price conditions

Conditions may apply at the level of the entire order, or the line item.
the article to be provided.

Order history
The transactions arising from an order are documented item by item in
the order history.

Two entries are recorded in accounting:

stock / stock variation and purchase / invoice to be received. Upon receipt, the average price
The weighted article is updated based on the order price.

New PMP = ((quantity in stock x current PMP) + (quantity received x order price))/
total quantity in stock

Invoice control

The invoice control function completes the procurement process that begins
through purchase requests, continues with purchases and goods receipts, then
ends with the invoice entries.

This function also allows you to record invoices that do not come from
the supply of items (for example, services, miscellaneous fees,
training costs, etc.) and assets.

The tasks of invoice control include:

the input of invoices and credit notes as soon as they are received,

the verification of the content of invoices,

the posting of entries resulting from an invoice,

the update of certain data, for example the price of items.

The general process includes the steps: order entry, receipt and
invoice. In this process, there can be no invoice entry until a receipt has been
was recorded.

The invoice entry is made with reference to the order and can then correspond to
different deliveries already recorded; it can be done with reference to a delivery which
means that each delivery is billed separately; it can be done in reference to
several orders from the same supplier.

The recorded accounting entries are: invoice to be received / supplier that is being settled
the writing recorded during the receipt and writing of VAT.

The invoice is checked in terms of amount against the price of each item of the
order and in terms of quantity regarding deliveries and also in terms of date
deadline.

In case of a price discrepancy, the invoice is blocked for payment and therefore cannot be processed.
processed in the accounts payable settlement process.
The invoice is completely blocked even if the discrepancy only concerns one of the lines. Before
to pay a blocked invoice, it must be unblocked in a separate step by canceling the code
of blockage that was specified during the invoice registration.

All items on a blocked invoice are unlocked at the same time.

Other possible processes:

Order entry, invoice entry, no reception

Order entry, invoice entry, then receiving entry

Entry of the invoice without prior order.

Other possibilities:

record unforeseen costs in an invoice at the time of order

record an invoice later possibly from another supplier to allocate to a

order.

Order tracking:

For each order, a purchase order can be issued.

It is possible to make follow-ups, before or after the scheduled delivery date, by

Drafting a list of reminders to be made and drafting reminder letters. 3 levels of reminders.
are possible.

Purchase request

Creation

A purchase request consists of several line items. An item in a purchase request

contains the quantity and delivery date of the item to be supplied. This is a document.
internal: it is not used outside the company.

A purchase request can be created either manually or from the calculation of needs.
(CBN), either from a customer order (direct delivery) or following a work order
fabrication.

It could allow for better traceability in certain cases.

Subcontracting purchase

Two types of subcontracting:

Purchase of an operational subcontracting service

Purchase of an article in complete subcontracting

For subcontracting purchases, see Module PP.

Consignment

Inventory management

In the context of consignment stock management, the supplier provides the items and
stores them in your company.

The supplier remains the legal owner of the item until the articles are consumed; at this
At that moment, he can demand payment.

The quantity of item removed is billed regularly based on the agreements made (all
the months, for example).

The consignment stock is managed under the same reference as the stock.

owned by the company. It can be transferred to available stock.

Consignment stocks of the same item but from different suppliers can
to be managed independently and at the price of each supplier.

Consignment stocks are not valued. When the item is withdrawn,

It is valued at the price of each respective supplier.

Process

Creation of purchase requests and orders

Purchase requests and orders for consignment items are processed.

exactly the same way as for the other articles:

manual entry or automatic creation of the purchase request by calculating needs, creation of
the order by entry or transformation of the purchase request.

Reception

The reception is identical to the standard reception with stock movement. However, it
there is no accounting entry.

Consumption

All stock outputs are possible, especially consumption for an order of

fabrication.

Establishment of a statement

Periodically, a count can be established to identify the debt owed and communicate
this information to the supplier.
Invoice control.

Reordering point procurement

In the calculation procedure for needs according to the reorder point, the system compares the
available stock with the defined reorder point for an item. If the stock
available is less than the reorder point, a supply recommendation
is generated in the form of a purchase order.

The determination of the control point is manual, meaning that the value must be
entry in the item sheet.

Supply with contract and delivery schedule

A contract is a long-term agreement made with a supplier for them to deliver an item or
service for a certain period.

The contract does not contain specific delivery dates or specific quantities delivered.
These are specified later in the contract calls.

The contract sets price conditions, possibly with a scale. The conditions
possibilities are the same as in a purchase info sheet.

When creating a contract, it is possible to choose between the following types of contracts:

Value: The contract is considered fulfilled when the calls on the contract total
A given value has been issued. It is still possible to place orders.

Quantity: The contract is considered fulfilled when the contract calls that
a given quantity has been issued.

If there is a contract for an item with one of the suppliers, it is possible to create
the orders based on these contracts.

This type of order is called a contract call.

In a contract call order, it is necessary to specify:

the quantity to be called,

the delivery date.

The price, supplier data, payment terms, indirect acquisition costs

and all instructions given to the supplier are automatically taken from the
contract.

It is possible to add positions that are not specified in the contract.

Note: If the value or the limit quantity is reached, it is still possible to place some
orders in reference to the contract.
The delivery program is a specific type of contract. As part of a
delivery schedule, suppliers receive a call about the delivery schedule
composed of individual deadlines and not orders or calls on contract.
The delivery schedule specifies the quantities to be delivered, the delivery dates, and data.
on previous goods receipts.

A schedule can contain firm, semi-firm, or planned deadlines.

(forecasted).

Two management modes:

Delivery programs without call documentation:

The schedule created or updated is automatically edited for transmission to the supplier.

Delivery programs with call documentation:

It is possible to make as many changes as desired to the individual deadlines.

then when the schedule is ready to be sent to the supplier, a call on program of
deliveries are to be generated. This triggers the transmission of the data to the supplier that it
concerning.

Each of the transmissions made is recorded to know what data has

were sent to the supplier and when.

The calculation of needs can automatically generate and update deadlines for
program.

Special cases

Purchasing management allows for the handling of other processes.

Importation

In the case of imports from a country in the EEC, additional information is required.
provide information at the article level, supplier, purchasing information sheet or contract, and if necessary in the
order. This allows for the establishment of the DEB.

Purchase from an occasional supplier

A generic supplier is created. When entering the order, it is necessary to provide the
Supplier's specific information. The general flow is the same.

Direct delivery to a customer

See SD Module.

Return
If a delivery needs to be returned to the supplier for any reason (for example,
the goods do not fit or do not match the order), the operation
It is still possible even if you have already registered the goods entry.

1st possibility: directly enter a return stock movement referencing the

original order.

2nd option: create a return order, then enter the stock movement
return.

Analysis and monitoring

Follow-up

A follow-up can be implemented through reminders and collection letters by choosing to

1 to 3 follow-ups before or after the requested delivery date.

A large number of lists allow for tracking the order portfolio, among other things:

Current orders with ordered quantity, remaining to be delivered, remaining to be invoiced by item,
supplier, group of goods

Possible suppliers per item

Supplier evaluation.

Supplier evaluation allows for assigning a score to each supplier.

The overall score is a combination of the scores assigned to a supplier for different
main criteria; each main criterion is made up of secondary criteria.

The system proposes a main criterion 'delivery' consisting of 3 secondary criteria:

respect for deadlines, respect for quantity, respect for shipping instructions.

The scores corresponding to the respect of the deadline and the respect of the quantities are calculated.
automatically upon each receipt according to a standard grading scale.

At each reception, it is necessary to indicate whether the chosen instruction is followed or not. Additionally
from the criterion 'delivery', it is possible to define criteria for which a manual rating
is attributed and entered.

The overall score of a supplier is calculated based on the scores of each main criterion.
taking into account the weighting coefficients.

In the system customization will be defined:

the weighting coefficients of each criterion

the shipping instructions and the corresponding notes

the criteria having a manual score.

In supplier evaluation, different states allow for analyses to be carried out.
comparative of the overall and individual scores of your suppliers.

The following states and analyses are available:

comparison of assessments;

supplier ranking (for all items);

Supplier ranking (for a specific item);

evaluation by article/group of articles;

suppliers without evaluation;

suppliers whose last assessment dates back to a certain date.

Statistics

Two functions are available as information retrieval.

Like all SAP modules, Purchasing has an information system. The function
the information system is to provide synthetic information; it uses ratios
significant updated by all operations performed dozens or hundreds of times
per day which constitute aggregated data.

Data can be analyzed through standard analyses providing for example

by article, supplier, group of goods the quantities and purchase values.
 SAP MM tables

Module MM (Material Management).

The MM module concerns the management of items at a point

from the perspective of purchasing and inventory management.

It includes concepts such as:

. The calculation of needs, of restocking

. Purchasing management
. contracts, purchase requests, etc.
. orders for goods, services
. Stock movements
. receipt of goods
. Invoice control
. Inventory Management
. in
. Store location management
. WM Warehouse Management
. Inventory

Document Article:

MKPF Document header article.

MSEG Document segment for article.

Purchase

EKKO Purchase Document Header.

EKPO Purchase document post.
EKPV Shipping data for transfer by post document Purchase.
EKET Delivery program deadlines.
VETVG Delivery deadline index for a merchandise transfer.
EKES Order Confirmations.
EKKN Imputation in purchase document.
EKAN Supplier address purchase document.
EKPA Partner roles in Procurement.
EIPO Foreign trade: import/export: postal data.
EINA Purchasing info sheet - general data.
ONE Purchase information sheet - procurement data.
EORD Rep.s.appro. Purchases.
EBAN Purchase request.
EBKN Purchase Request Imputation.
KNMT Information Article-Client: Data table.
MAKT Designations of items.
MDKP Header data document planning.
MDTB Planning table.
General tables:

MAKT Designations of items.

MARA General Article Data
MARM Units of quantity for the item.

Purchase order:

S011 Buyer Group Statistics

S012 Purchase
EKET Delivery schedule deadlines.
EKKN Imputation in purchase document.
EKPO Purchase document post.
EKKO Purchase document header.
A Purchase organization info sheet - purchasing data.
EINA Purchase info sheet - general data.
EORD Source Directory Procurement Purchases.

Purchase: Receipt of goods:

MSEG Document segment for article.

EKBE Purchase document history.
MVER Consumption Article.
S031 Statistics: movements for current stocks.
S013 statistics for supplier evaluation.
S011 Statistics of buyer groups.
MKPF Document header article.

Main data:

-----------------------------------------------------
MARC Article Division Data
MLAN Tax classification of the article

General table

-----------------------------------------------------
MAKT Designations of items
MARA General Data Article
MARM Quantity units for the item

-----------------------------------------------------
MBEW Valorisation article
 Transaction SAP MM

Sellers

create a seller
XK02 = modify a vendor
display a seller
ME65 = supplier awards
MCE3 = analyze by supplier

Article Management

MM01 = create article record

MM02 = article modification form
MM03 = display article sheet
MM11 = plan the creation of an article
MM12 = plan to modify an item
MM06 = suppression witness article
MM16 = plan a suppression witness
MEK3 = display article conditions
MM60 = item list by factory
MSC1N = create lot
MSC2N = modifier lot
MSC3N = display batch

Stocks

MMBE = stock synthesis

RWBE = stock synthesis
MD04 = dynamic stock status
MB51 = list of document items
MB5B = unique UQ stocks
MB5L = stocks by accounting accounts
OMJC = creation of inventory documents (list of divisions + list of movements)
MI01 = create an inventory document

Movements

goods issue
MB1B = article transfer
MB1C = other goods receipts
MB01 = EM recording on order, goods receipt
MIGO = goods receipt (GR) for order number (before MB01)
MBOA = EM for structured articles
VL09 = cancel a goods issue (GI)
MBST = cancel document item of a destocking movement
Purchase

ME11 = create purchase info sheet (correspondence between item and suppliers)
ME12 = modifier purchase info file
ME13 = display purchase info sheet
ME41 = create request for proposals
ME42 = bid modification
ME43 = display call for tenders
ME47 = management of tender calls
ME49 = comparison of bid prices from different suppliers
ME31K = create a contract
ME32K = modify a contract
ME33K = display a contract
ME51N = create a Purchase Request
ME52N = modify a Purchase Requisition
ME53N = display a Purchase Request
ME59N = transformation DA–automatic creation of purchase order from requisitions
ME5A = display purchase request list
ME57 = allocation and processing of the purchase request
MD03 = calculation of individual monolevel needs
ME27 = create a transfer order
ME21N = create purchase order
ME22N = purchase order modifier
ME23N = display purchase order
MN05 = type of purchase order condition –Change output: condition records:
purchase order
message editing - purchase document - message output
purchase by supplier
ME2M = purchase document by item
ME2W = purchase document by divesting division
 Product Catalogue in SAP MM

Transaction Description
MM01 Creation of a configurable article
MM01 Creation of optional articles
CT04 Creation of characteristics
CL01 Creation of classes
CU41 Creation of the configuration profile
CS01 Creation of the super nomenclature
CU50 Interface design
CU01 Creating dependencies
Allocation of dependencies
VK11 Creation of price conditions
CA01 Range creation

The transactions for managing a product catalog in SAP MM

MM01 = Create an article

MM02 = Modify an article
Display an item
Directory of articles
Mass management

Features

Management of characteristics
Directory of characteristics
Directory of characteristic values

Class

CL04 = Delete class

Create classes
CL02 = Modify a class
Display a class
CL6A = Directory of classes
CL30N = Search for objects in classes

Nomenclature

CS01 = Create a nomenclature

Modifier nomenclature
Display nomenclature
CS15 = Use Case of Articles for Nomenclatures
Range

CA01 = Create a range

CA02 = Modify the dependencies on sequences/operations of operational ranges

Configuration

Create configuration profile

CU42 = Configuration profile modifier
Create / modify interface design

Dependencies

Create an individual dependency

Modify dependencies
CU05 = Use of dependencies
CU21 = Create dependency network

Divers

CL6B = Directory of objects