Bookstore

Materials management has transitioned to SAP S/4HANA-let us help you do the same! Whether your focus is on materials planning, procurement, or inventory, this guide will teach you to configure and manage your critical processes in SAP S/4HANA. Start by creating your organizational structure and defining business partners and material master data. Then get step-by-step instructions for defining the processes you need, from creating purchase orders and receiving goods to running MRP and using batch management. The new MM is here!

Material master data
Business partner master data
Batch management
Purchasing
Quotation management
Material requirements planning (MRP)
Inventory management
Goods issue/goods receipt (GI/GR)
Invoicing
Valuation
Document management
Reporting

Materials Management with SAP S/4HANA: Business Processes and Configuration

... Acknowledgments ... 31


... Preface ... 33


... Who Is This Book For? ... 33


... How This Book Is Organized ... 33


... Conclusion ... 38


1 ... Materials Management Overview ... 39


1.1 ... What Is Materials Management? ... 39


1.2 ... Materials Management Integration ... 43


1.3 ... Summary ... 45


2 ... Organizational Structure ... 47


2.1 ... Mapping Business Functions of a Company in the SAP System ... 48


2.2 ... Client Structure in the SAP System ... 51


2.3 ... Company Code ... 55


2.4 ... Plants ... 57


2.5 ... Storage Locations ... 63


2.6 ... Purchasing Organization ... 66


2.7 ... Purchasing Groups ... 73


2.8 ... SAP Calendar ... 73


2.9 ... Summary ... 77


3 ... Configuring the Material Master ... 79


3.1 ... Material Master ... 79


3.2 ... Configuring a New Material Type ... 81


3.3 ... Defining a Number Range for a Material Type ... 86


3.4 ... Defining Field Selections ... 89


3.5 ... Configuring an Industry Sector ... 91


3.6 ... Defining Material Groups ... 91


3.7 ... Configuring a New Unit of Measure ... 92


3.8 ... Validating the Correctness of Configurable Objects ... 95


3.9 ... Summary ... 100


4 ... Material Master Data: Part 1 ... 101


4.1 ... Industry Sector ... 103


4.2 ... Material Type ... 103


4.3 ... Basic Data ... 109


4.4 ... Classification Data ... 122


4.5 ... Purchasing Data ... 124


4.6 ... Sales Organizational Data ... 134


4.7 ... Sales General Data ... 140


4.8 ... Material Requirements Planning Data ... 143


4.9 ... Summary ... 162


5 ... Material Master Data: Part 2 ... 163


5.1 ... Advanced Planning Data ... 163


5.2 ... Forecasting Data ... 169


5.3 ... Work Scheduling Data ... 174


5.4 ... Production Resources/Tools Data ... 178


5.5 ... Plant Data/Storage Location ... 181


5.6 ... Warehouse Management Data ... 187


5.7 ... Quality Management Data ... 192


5.8 ... Accounting Data ... 196


5.9 ... Costing Data ... 201


5.10 ... Summary ... 205


6 ... Business Partners ... 207


6.1 ... Configuring Vendor Account Groups (Financial Accounting) ... 209


6.2 ... Configuring a Business Partner ... 214


6.3 ... Customer/Vendor Integration ... 220


6.4 ... Additional Business Partner Configurations ... 224


6.5 ... Maintaining a Business Partner ... 226


6.6 ... Summary ... 260


7 ... Purchasing Information Record ... 261


7.1 ... Purchasing General Data ... 262


7.2 ... Purchasing Organization Data ... 267


7.3 ... Summary ... 273


8 ... Batch Management Data ... 275


8.1 ... Batch Management Overview ... 275


8.2 ... Batch Level and Batch Status Management ... 277


8.3 ... Master Data in Batch Management ... 282


8.4 ... Business Processes of Batch Management ... 287


8.5 ... Batch Determination ... 294


8.6 ... Recurring Inspection and Expiration Dates ... 307


8.7 ... Batch Derivation ... 315


8.8 ... Batch Traceability of Work in Process Batches ... 325


8.9 ... Batch Information Cockpit ... 336


8.10 ... Electronic Batch Record ... 339


8.11 ... Summary ... 341


9 ... Purchasing Overview ... 343


9.1 ... Purchase Requisitions ... 343


9.2 ... Requests for Quotation ... 344


9.3 ... Quotations ... 345


9.4 ... Purchase Orders ... 346


9.5 ... Source Lists and Source Determination ... 346


9.6 ... Conditions in Purchasing ... 352


9.7 ... Purchasing Information Records ... 354


9.8 ... Serial Numbers ... 357


9.9 ... Quota Arrangements ... 359


9.10 ... Summary ... 361


10 ... Purchase Requisitions ... 363


10.1 ... Configuring a New Purchase Requisition Document Type ... 363


10.2 ... Processing a Purchase Requisition ... 375


10.3 ... Indirectly Created Requisitions ... 378


10.4 ... Release Procedures ... 380


10.5 ... Summary ... 399


11 ... Requests for Quotation ... 401


11.1 ... Creating a Request for Quotation ... 401


11.2 ... Changing a Request for Quotation ... 410


11.3 ... Releasing a Request for Quotation ... 411


11.4 ... Issuing a Request for Quotation to a Vendor ... 413


11.5 ... Maintaining Quotations ... 415


11.6 ... Comparing Quotations ... 416


11.7 ... Rejecting Quotations ... 420


11.8 ... Summary ... 422


12 ... Purchase Orders ... 423


12.1 ... Creating and Maintaining a Purchase Order ... 424


12.2 ... Blocking and Canceling a Purchase Order ... 430


12.3 ... Creating a Purchase Order with Reference to Purchasing Documents ... 432


12.4 ... Account Assignment in a Purchase Order ... 435


12.5 ... Progress Tracking ... 438


12.6 ... Outline Purchase Agreements ... 443


12.7 ... Supplier Confirmation ... 451


12.8 ... Messages and Output ... 459


12.9 ... Pricing Procedures ... 468


12.10 ... Supplier Evaluation ... 478


12.11 ... Serial Numbers in Purchasing ... 489


12.12 ... Summary ... 496


13 ... External Services Management ... 497


13.1 ... Service Master Record ... 498


13.2 ... Standard Service Catalog ... 502


13.3 ... Conditions in External Services Management ... 502


13.4 ... Procurement of Services ... 503


13.5 ... Entry of Services ... 505


13.6 ... Blanket Purchase Orders ... 509


13.7 ... Configuration Basics of External Services Management ... 512


13.8 ... Summary ... 514


14 ... Special Procurement Types ... 515


14.1 ... Overview ... 516


14.2 ... Direct Procurement ... 518


14.3 ... Stock Transfers (Interplant Transfers) ... 521


14.4 ... Withdrawals from an Alternative Plant ... 524


14.5 ... Subcontracting ... 525


14.6 ... Consignment ... 532


14.7 ... Pipeline Material ... 534


14.8 ... Simplified Sourcing ... 535


14.9 ... Summary ... 537


15 ... Material Requirements Planning ... 539


15.1 ... Process Overview ... 540


15.2 ... Material Requirements Planning Elements ... 545


15.3 ... Material Requirements Planning Procedures ... 564


15.4 ... Planning Areas ... 582


15.5 ... Classic MRP ... 587


15.6 ... Configuration Settings ... 590


15.7 ... Planning Calendar ... 593


15.8 ... Summary ... 595


16 ... Forecasting ... 597


16.1 ... Forecast Models ... 598


16.2 ... Forecasting Master Data ... 600


16.3 ... Forecast Profile ... 604


16.4 ... Business Processes in Forecasting ... 605


16.5 ... Configuration Settings for Forecasting ... 611


16.6 ... Summary ... 614


17 ... Inventory Management Overview ... 617


17.1 ... Goods Movements ... 617


17.2 ... Physical Inventory ... 625


17.3 ... Returns ... 625


17.4 ... Material Documents ... 630


17.5 ... Reservations ... 631


17.6 ... Stock Transfers ... 638


17.7 ... Configuration Basics in Inventory Management ... 645


17.8 ... Summary ... 649


18 ... Goods Issue ... 651


18.1 ... Goods Issue to a Production Order ... 651


18.2 ... Goods Issue to Scrap ... 659


18.3 ... Goods Issue for Sampling ... 662


18.4 ... Goods Issue Postings ... 663


18.5 ... Goods Issue Reversals ... 664


18.6 ... Summary ... 665


19 ... Goods Receipt ... 667


19.1 ... Goods Receipt for a Purchase Order ... 667


19.2 ... Goods Receipt for a Production Order ... 675


19.3 ... Initial Entry of Inventory ... 676


19.4 ... Good Receipt of Co-Products or By-Products ... 679


19.5 ... Other Goods Receipts ... 696


19.6 ... Summary ... 698


20 ... Physical Inventory ... 699


20.1 ... Physical Inventory Methods ... 700


20.2 ... Physical Inventory Preparation ... 701


20.3 ... Counting and Recounts ... 705


20.4 ... Physical Inventory Posting ... 709


20.5 ... Cycle Counting Method of Physical Inventory ... 714


20.6 ... Summary ... 717


21 ... Invoice Verification ... 719


21.1 ... Standard Three-Way Match ... 720


21.2 ... Duplicate Invoice Check ... 725


21.3 ... Evaluated Receipt Settlement ... 726


21.4 ... Credit Memos and Reversals ... 731


21.5 ... Taxes in Invoice Verification ... 732


21.6 ... Goods Receipt/Invoice Receipt Account Maintenance ... 732


21.7 ... Invoice Reduction ... 734


21.8 ... Tolerance Limits ... 736


21.9 ... Blocking Invoices ... 740


21.10 ... Releasing Blocked Invoices ... 742


21.11 ... Down Payments ... 743


21.12 ... Retention Money ... 748


21.13 ... Summary ... 749


22 ... Inventory Valuation and Account Assignment ... 751


22.1 ... Split Valuation ... 752


22.2 ... Account Determination ... 765


22.3 ... Last In First Out Valuation ... 780


22.4 ... First In First Out Valuation ... 787


22.5 ... Lowest Value Determination ... 790


22.6 ... Material Price Changes ... 795


22.7 ... Summary ... 797


23 ... Material Ledger ... 799


23.1 ... Material Ledger Overview ... 799


23.2 ... Business Processes ... 803


23.3 ... Configuration Basics ... 810


23.4 ... Activating the Material Ledger ... 820


23.5 ... Reporting in the Material Ledger ... 823


23.6 ... Summary ... 828


24 ... Classification System ... 829


24.1 ... Classification Overview ... 830


24.2 ... Characteristics ... 832


24.3 ... Classes ... 838


24.4 ... Object Dependencies ... 843


24.5 ... Finding Objects Using Classification ... 844


24.6 ... Summary ... 848


25 ... Document Management System ... 849


25.1 ... Configuration Steps ... 849


25.2 ... Document Info Record ... 860


25.3 ... Additional Functionality ... 866


25.4 ... Summary ... 871


26 ... Early Warning System ... 873


26.1 ... Overview ... 874


26.2 ... Early Warning System Setup ... 875


26.3 ... Scheduling an Early Warning System ... 884


26.4 ... Early Warning System in Action ... 885


26.5 ... Exception Analysis ... 887


26.6 ... Summary ... 888


27 ... Reporting and Analytics ... 889


27.1 ... The Basics of Reporting ... 889


27.2 ... Purchasing Reports ... 892


27.3 ... Standard Analyses: Purchasing ... 900


27.4 ... Standard Analyses: Inventory Management ... 905


27.5 ... SAP Fiori Apps ... 911


27.6 ... Summary ... 918


A ... Movement Types ... 919


B ... The Authors ... 921


... Index ... 923