SAP MM Book by Mukesh Shukla
www.sapbymukesh.com
Cover Page 2nd Edition
Cover Page 1st Edition
Who Should buy and Why
Get this Book
Content
Chapter Overview
CIN - Country Version India
IQ&A
Book Overview and Preface
Preface to Edition 2
Preface to Edition 1
Acknowledgement
Author's Profile
CV
Paper Published
Blog - SAP MM Book
Contacts
Content of the Book
File Size:
31 kb
File Type:
docx
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Content of the book
Synopsis 15
Chapter 1: Materials Management: Manage Sourcing, Supply and Inventory through SAP 19
1.1 Materials Management 19
1.2 Material 20
1.3 Procurement 20
1.3.1 Sourcing 21
1.3.2 Supply 24
1.4 Inventory Management 25
1.5 SAP Materials Management 26
1.5.1 Business Process 27
1.5.2 Operations Activities to execute Business Processes 28
1.6 Introduction to SAP System 30
Chapter 2: Business Processes in Procurement 36
2.1 Basics of Procurement 36
2.1.1 Organization Structure 36
2.3: Master Data 45
2.3.1 Material Master 45
2.3.2 Service Master 49
2.3.3 Vendor Master 51
2.3 Purchase Order for Stock Material 54
2.4 Purchase order for consumable/ non-stock material 59
2.5 Purchase order for external services 60
2.6 Master Data for Purchase 64
2.7 Sources of supply: info records, contracts, and scheduling agreements 65
2.8 Source Determinations 69
2.9 Special Procurement Process 73
2.10 Return Purchase Order 80
2.11 Document Release (approval) procedure 81
2.12 Contract 88
2.13 Scheduling Agreement 98
2.14 Delivery Schedule 99
2.15 RFQ: Request for Quotation 100
2.16 Quotation Maintenance 105
2.17 Quotation Comparison 108
Purchase Requisition 114
Chapter 3: Inventory Management, Valuation and Physical Inventory 118
3.1 Movement Type 118
3.2 Goods Receipt 145
3.3 Stock Transfer and Transfer Posting 153
3.4 Goods Issue 155
3.5 Reservation 155
3.6 Special forms of Procurement (Subcontracting) 157
3.7 Inventory valuation, Split valuation and non-valuated material 168
3.8 Physical inventory and special inventory procedures (cycle counting in SAP) 173
3.9 Reporting in Inventory Management 177
Chapter 4: Financial Accounting Integration with Materials Management 180
4.1 Automatic Account Determination (AAA) 180
4.1.1 Transaction/Event Keys 182
4.2 Pricing Procedure 192
4.3 Automatic pricing procedure 202
4.4 Tax procedure 207
4.5 Purchase Account Management 217
Chapter 5: Logistics Invoice Verification 224
5.1 Logistics Invoice Verification 224
5.2 Invoice parking 228
5.3 Variances and blocking 229
5.4 Invoice Reduction 231
5.5 Delivery Cost 238
5.6 Unplanned Delivery Cost (UPDC) 241
5.7 Subsequent Debit/Credit Memos 244
5.8 Credit memos and cancellations 246
CIN
(Country India) Version
Chapter 6: Country India Version (CIN) 8
6.1 Excise Duty_ 8
6.2 Different Business Process Scenario_ 9
6.2.1 Domestic Procurement 9
6.2.2 Import Procurement 9
6.2.3 Capital Item Procurement 9
6.2.4 Vendor Return 9
6.2.5 Cancellation of Goods Receipt 9
6.2.6 Stock Transport Order 10
6.2.7 Sales 10
6.2.8 Material Scrap 10
6.2.9 TR6 Challan 10
6.2.10 Utilization 10
6.2.11 Additional Excise and Other adjustment 10
6.3 Accounting Entries 11
6.3.1 Accounting entry during Goods Receipt (MIGO) 11
6.3.2 Accounting entry during excise invoice posting for Goods Receipt (J1IEX) 11
6.3.3 Accounting entry during LIV (logistics invoice verification) (MIRO) 11
6.3.4 Accounting entry during Goods Issue for sales (PGI: VL02N) 11
6.3.5 Accounting entry during Billing for sales 11
6.3.6 Accounting entry during Excise Invoice for sales 12
6.3.7 Advance Payment of Excise Duty (TR6 Challan) 12
6.3.8 Utilization of Excise Payable against PLA Register 12
6.3.9 Utilization of Excise Payable against Excise Receivable 12
6.4 Excise Duty in Purchase Order 14
6.5 Excise Duty in Material Document of Goods Receipt 17
6.6 Excise in LIV Document 19
6.7 Excise in System Internal Excise Document 20
6.8 Excise Treatment in Depot Plants 21
6.9 Excise in Subcontracting Business Process 22
6.10 Monthly Utilization_ 28
6.11 Excise Tax Registers 33
6.12 Value Added Tax (VAT) 39
Implementation Guide
Chapter 7: Implementation Guide 213
7.1 Configuring Enterprise Structure- 217
7.1.1 Company- 217
7.1.2 Company Code- 221
7.1.3 Plant 223
7.1.4 Storage Locations 226
7.1.5 Purchasing Organization- 227
7.2 Assignment 229
7.2.1 Assign company code to company- 229
7.2.2 Assign plant to company code- 230
7.2.3 Assign purchasing organization to company code- 231
7.2.4 Assign purchasing organization to plant 232
7.2.5 Assign purchasing organization to reference purchasing Organization- 234
7.3 Tax Procedure- 235
7.3.1 Define Procedures 235
7.3.2 Define Condition Types 238
7.3.3 Access Sequences 240
7.3.4 Assign Country to Calculation Procedure- 242
7.3.5 Check and Change Settings for Tax Processing- 243
7.3.6 Define Tax Codes for Sales and Purchases 245
7.3.7 Define Tax Accounts 248
7.4 Configuring Master Data- 252
7.4.1 Vendor Account Group- 252
7.4.2 Material master 256
7.5 Configuring Purchasing- 261
7.5.1 Shipping instruction- 261
7.5.2 Purchasing Value Key- 262
7.5.3 Purchasing Groups 264
7.5.4 Configuring RFQ/Quotation- 266
7.5.4.1 Define Document Types 266
7.5.4.2 Define Number Range- 267
7.5.4.3 Define Screen Layout at Document Level 272
7.5.4.4 Texts for RFQs/Quotations 275
7.5.4.5 Define Text Types for Header Texts 276
7.5.4.6 Define Copying Rules for Header Texts 276
7.5.4.7 Maintain Quotation Comments 278
7.5.5 Purchase Requisition- 279
7.5.5.1 Define Document Types 281
7.5.5.2 Define Number Ranges 281
7.5.5.3 Define Screen Layout at Document Level 281
7.5.5.4 Texts for Purchase Requisitions 281
7.5.5.5 Release Procedure for Purchase Requisition- 283
7.5.5.5.1 Release Procedure for Purchase Requisition without Classification- 283
7.5.5.5.2 Release Procedure for Purchase Requisition with Classification- 291
7.5.6 Purchase Order 308
7.5.7.1 Define Document Types 310
7.5.7.2 Define Number Ranges 310
7.5.7.3 Define Screen Layout at Document Level 310
7.5.7.4 Texts for Purchase Orders 310
7.5.7.5 Set Tolerance Limits for Price Variance- 311
7.5.7.6 System Message Configuration- 312
7.5.7.7 Release Procedure for Purchase Orders 314
7.5.7.7.1 Edit Characteristics 316
7.5.7.7.2 Edit Class 319
7.5.7.7.3 Define Release Procedure for Purchase Orders 321
7.5.7.8 Set up Stock Transport Order (STO) 331
7.5.7.8.1 Define Shipping Data for Plants 334
7.5.7.8.2 Create Checking rule- 336
7.5.7.8.3 Define Checking Rule- 338
7.5.7.8.4 Assign Delivery Type and Checking Rule- 339
7.5.7 Contracts and Scheduling Agreement 345
7.5.8 Conditions 345
7.5.8.1 Define Condition Types 349
7.5.8.2 Define Calculation Schema- 351
7.5.8.3 Define Schema Group- 353
7.5.8.4 Define Schema Determination- 355
7.5.8.5 Define Transaction/Event Keys 356
7.5.8.6 Define Access Sequences 358
7.5.8.7 Maintain Condition Table- 360
7.5.8.8 Extend Field Catalog for Condition Tables 368
7.5.9 Account Assignment 372
7.5.10 Messages 378
7.5.10.1 Maintain Message Types for PO- 381
7.5.10.2 Fine-Tuned Control: Purchase Order 387
7.5.10.3 Message Determination Schemas 387
7.5.10.3.1 Define Message Schema for Purchase Order 387
7.5.10.3.2 Assign Schema to Purchase Order 389
7.5.10.4 Condition Tables 390
7.5.10.4.1 Define Condition Table for Purchase Order 390
7.5.10.5 Access Sequences 390
7.5.10.5.1 Define Access Sequence for Purchase Order 390
7.5.11 Vendor Evaluation- 394
7.5.11 Vendor Evaluation- 394
7.5.11.1 Define Weighting Keys 408
7.5.11.2 Define Criteria- 409
7.5.11.3 Define Scope of List 412
7.5.11.5 Maintain Purchasing Organization Data- 414
7.5.12 Partner Determination- 419
7.5.12.1 Partner Roles 421
7.5.12.2 Define Permissible Partner Roles per Account Group- 423
7.5.12.3 Partner Settings in Vendor Master Record- 423
7.5.12.3.1 Define Partner Schemas 423
7.5.12.3.2 Assign Partner Schemas to Account Groups 424
7.5.12.4 Partner Settings in Purchasing Documents 424
7.5.12.4.1Define Partner Schemas 424
7.5.12.5 Assign Partner Schemas to Document Types 426
7.6 External Service Management 426
7.6.1 Define Organizational Status for Service Categories 427
7.6.2 Define Service Category- 428
7.7 Inventory Management and Physical Inventory- 429
7.7.1 Define Attributes of System Messages 429
7.7.2 Number Assignment 430
7.7.3 Field Selection for Goods Movements Initial/Header Screens 430
7.7.4 Settings for Enjoy Transactions 433
7.7.4.1 Field Selection for MIGO- 433
7.7.4.2 Field Selection per Mvt Type- 437
7.7.4.3 Settings for Transactions and Reference Documents 438
7.7.5 Goods Issue/Transfer Postings 440
7.7.5.1 Create Storage Location Automatically- 441
7.7.5.2 Set Manual Account Assignment 443
7.7.5.3 Define Screen Layout 445
7.7.6 Goods Receipt 448
7.7.7.1 Set Tolerance Limits 450
7.7.7.2 Create Purchase Order Automatically- 453
7.7.7.3 Set Expiration Date Check- 454
7.7.7 Automatic Movements 457
7.7.7.1 Reservation- 458
7.7.7.1 Define Default Values 458
7.7.8 Physical Inventory- 460
7.7.8.1 Default Values for Batch Input 460
7.7.8.2 Allow Freezing of Book Inventory Balance in Storage Location- 464
7.7.8.3 Define Tolerances for Physical Inventory Differences 466
7.7.8.4 Cycle Counting- 468
7.7.9 Movement Types 473
7.7.9.1 Record Reason for Goods Movements 474
7.7.9.2 Copy, Change Movement Types 476
7.8 Valuation and Account Assignment 488
7.8.1 Define Price Control for Material Types 491
7.8.2 Split Valuation- 491
7.8.2.1 Activate Split Valuation- 491
7.8.2.2 Configure Split Valuation- 492
7.8.2.2.1 Valuation Type- 493
7.8.2.2.2 Valuation Categories 495
7.8.3 Account Determination- 501
7.8.3.1 Define Valuation Control 503
7.8.3.2 Group Together Valuation Areas 504
7.8.3.3 Define Valuation Classes 504
7.8.3.4 Define Account Grouping for Movement Types 507
7.8.3.5 Account Assignment 507
7.8.3.6 Simulation- 514
7.8.4 Purchase Account Management 520
7.9 Logistics Invoice Verification- 527
7.9.1 Incoming Invoice- 527
7.9.1.1 Tax Treatment in Invoice Reduction- 527
7.9.1.2 Maintain Default Values for Tax Codes 528
7.9.1.3 Configure How Unplanned Delivery Costs Are Posted- 529
7.9.1.4 Edit PO Supplement Text in Invoice Verification- 530
7.9.1.5 Configure Vendor-Specific Tolerances 532
7.9.1.6 Activate Direct Posting to G/L Accounts and Material Accounts 542
7.9.1.7 Set Check for Duplicate Invoices 542
7.9.1.8 Set Tolerance Limits 543
7.10 Batch Management 549
7.10.1 Specify Batch Level 549
7.10.2 Manual batch number creation- 552
7.10.3 Batch Number Assignment 554
7.10.3.1 Activate Internal Batch Number Assignment 555
7.10.3.2 Maintain Internal Batch Number Assignment Range- 555
7.10.4 Creation of New Batches 557
7.10.4.1 Define Batch Creation for Goods Movements 557
7.10.4.2 Define Initial Creation of Data for Batch Master Transactions for Material Type- 557
7.10.5 Batch Classification- 559
7.10.6 Batch Determination and Batch Check- 562
7.10.7.1 Strategy Types 564
7.10.7.1.2 Define Inventory Management Strategy Types 564
7.10.7 Batch Search Procedure Definition- 565
7.10.7.1 Define Inventory Management Search Procedure- 565
7.10.8 Batch Search Procedure Allocation and Check Activation- 566
7.10.8.1 Allocate IM Search Procedure/Activate Check- 566
7.10.9 Define Sort Rules 567
7.10.10 Access Sequences 569
7.10.10.1 Define Inventory Management Access Sequences 569
7.10.10.2 Condition Tables 571
ERP Implementation: A Process
Synopsis
. 10
Chapter 1: Introduction. 12
Chapter 2: Comparative Study of Agro and Non-Agro Based Industries. 18
2.1 Introduction. 18
2.2 Historical Development 19
2.3 Geopolitical view.. 20
2.4 Agro Industry Specific Features. 21
Chapter 3: ERP Implementation: A Case Study. 31
3.1 Objective. 31
ERP case study Focus. 33
3.2 ABC LTD. Overview.. 33
3.3 About the Company. Error! Bookmark not defined.
3.4 Need of ERP in ABC Ltd. 35
3.5 SAP Implementation Model: Road Map. 36
3.6 Scope of Materials Management Module. 44
Chapter 4: Materials Management Module Implementation. 46
4.01 Project Preparation. 46
4.1.01 Phased Project Lifecycle and Deliverables 47
4.1.02 ABC LTD. Team.. 48
Project Steering Committee Members 48
Core Users/Module Leads 49
4.1.05 Module-sub-leads 49
4.1.06 TEAM STRUCTURE. 50
4.2 BUSINESS BLUEPRINT.. 51
4.2.01 Deliverables of the Phase. 52
4.2.02 Following is the kind of Blueprint Exit Criteria that are to be met:- 52
4.2.03 Business Blueprint Process Activities 53
4.2.04 Business Process Master List (BPML) 53
4.2.05 Integration Meeting for Process Mapping. 54
4.2.07 Scope Issues Resolving and Monitoring Through Incident Tracker 61
4.2.08 CIT: Customer Input Template. 62
4.2.10 Project Team Training. 64
4.2.11 Scope of Improvement in the Blue print phase. 65
4.3 Realization. 67
4.3.01Implementation Guide. 68
4.3.02 Module and Each Individual wise Plan. 69
4.3.03 FS for Enhancement and Developments 76
4.4 Final Preparation. 77
4.4.01 Test Scripts 78
4.4.02 Functional Specification for Report and Print Layouts 80
4.4.03 Train the Trainer 80
4.4.04 Cut Over Strategy and Data Migration Planning. 81
4.5 Phase 5: Go Live & Support 87
4.5.01 UAT: User Acceptance Testing. 88
4.5.02 Data Upload. 88
4.5.03 System Landscape and Production System Testing. 88
4.5.04 UPM and Configuration Guide. 90
Chapter 5: Scope of BPR in ERP Implementation. 92
5.1 Introduction. 92
5.2 Assets and Equipment Management 92
5.3 Warehouse Design. 94
5.4 Internal Transportation. 95
5.5 Paddy Job Work. 98
5.6 Warehouse for Consumables and Spares. 100
5.7 Operational Organization Restructuring. 101
5.8 Physical Inventory. 102
5.9 Material Codification. 103
5.10 Vendor Development 104
Conclusion. 105