SAP Material Master A Practical Guide Matthew Johnson
TABLE OF CONTENTS Table of Contents Preface 7 1 Introduction 11 2 Material Master Basics 17 2.1 Material master structure 17 2.2 Creating and accessing the SAP Material Master 20 2.3 Accessing technical help and information 29 2.4 Personal experience 32 3 Manufacturing Environment 35 3.1 Planning strategy in theory 36 3.2 SAP planning strategy 39 3.3 Personal experience 50 4 Basic Information 53 4.1 Basic material information 53 4.2 Basic Data 1 screen 54 4.3 Basic Data 2 screen 66 4.4 Classification screen 71 4.5 Personal experience 72 5 Sales 75 5.1 Sales structure in the material master 76 5.2 Sales organization 1 screen 77 3
TABLE OF CONTENTS 5.3 Sales organization 2 screen 86 5.4 Sales General / Plant screen 90 5.5 Foreign Trade Export screen 99 5.6 Sales Text screen 100 5.7 Personal experience 102 6 Purchasing 105 6.1 Purchasing structure in the material master 106 6.2 Purchasing screen 106 6.3 Foreign Trade Import screen 126 6.4 Purchase Order Text 128 6.5 Personal experience 129 7 Planning 133 7.1 Planning structure in the material master 134 7.2 MRP 1 screen 135 7.3 MRP 2 screen 146 7.4 MRP 3 screen 156 7.5 MRP 4 Screen 163 7.6 Forecasting screen 171 7.7 Work scheduling screen 175 7.8 Personal experience 181 8 Inventory Management 185 8.1 Inventory management in the material master 186 8.2 Plant data / storage 1 187 8.3 Plant data / storage 2 195 8.4 Warehouse management 1 197 4
TABLE OF CONTENTS 8.5 Warehouse management 2 202 8.6 Personal experience 204 9 Quality Management 207 9.1 Quality management structure in the material master 208 9.2 Quality management screen 208 9.3 Personal experience 215 10 Accounting 217 10.1 Accounting in the material master 218 10.2 Accounting 1 220 10.3 Accounting 2 226 10.4 Costing 1 228 10.5 Costing 2 235 10.6 Plant stock 239 10.7 Storage location stock 240 10.8 Personal experience 241 11 Conclusion 243 A The Author 247 B Index 249 C Disclaimer 255 More Espresso Tutorials ebooks 256 5
2 Material Master Basics In this chapter I will describe the general format of the SAP Material Master as it is seen by the end user. I will also set up a framework for my description of the material master by defining some terms that will be used throughout the text. This framework will help to you begin navigating the material master. By maintaining a material master you will not only be describing an item, you will also be further classifying that item to suit your organization s needs. You will set up the material master to perform various sales, planning, procurement, production, and shipping activities, as well as selecting the parameters to control those actions. As we go through this text, I will define the material master settings and their implications in detail. In order to do this, we need to discuss the basic theory and abilities of the material master, as well as define some common terms that will be used throughout the text. 2.1 Material master structure Like most information stored within SAP s transactions, the material master is nothing more than a database that has been programmed with an aesthetic visual representation. This visually pleasing display consists of several screens, each containing information and parameter settings relevant to the screen s title. Furthermore, the information on each screen is sub-classified into more specific groupings, which I ll refer to as an Information 17
MATERIAL MASTER BASICS Set. The example below (see Figure 2.1) is a picture of the MRP 1 screen, an essential component to material planning, procurement, and production functionality. This screen consists of some general header data; the material, the material description, technical information, the plant and the revision. It also consists of four information sets; GENERAL DATA, MRP PROCEDURE, LOT SIZE DATA and MRP AREAS. Figure 2.1: MRP 1 Screen Each element of any given information set is called a field. In the previous example (see Figure 2.1) the information set GENERAL DATA contains the fields BASE UNIT OF MEASURE, MRP GROUP, PURCHASING GROUP, ABC 18
MATERIAL MASTER BASICS INDICATOR, PLANT SPECIFIC MATERIAL STATUS, and VALID FROM (regarding plant specific material status). Each field is also stored behind the scenes in a table within the SAP database. The table contains other fields with similar functions. SAP has also designed relationship structures into the program which allow certain tables to communicate with one another and drive functionality. As you progress in your understanding of the material master, you will want to understand those relationships in great detail. Not only will an understanding of those relationships help you to understand material master functionality, it will also help you to capitalize on customized reporting possibilities. Each table and field is represented by a technical name in the database. In the example below (see Figure 2.2) a technical description of the field MRP TYPE is displayed. Here you can see the technical name of the field (DISMM) and the table (MARC) in which it is stored. We will discuss more about technical information and how to access it later in the chapter. Use table relationships for customized reporting Not all of the information you may want is available to you in a standard SAP report. Once you ve gained an understanding of tables, fields and their relationship with one another in the material master, explore transaction SQVI. It is a report builder where you can create customized reports on most interrelated fields of the material master (and other transactions for that matter) by joining their respective tables for the purposes of reporting. 19
MATERIAL MASTER BASICS Figure 2.2: Technical Information table and field name 2.2 Creating and accessing the SAP Material Master There are three main SAP transaction codes that pertain to the SAP Material Master: MM01 (CREATE MATERIAL MASTER) This is the transaction code used to create a new material master. You will have two choices when you create a material master. You can either create a new material without reference, or you can choose to copy an existing material master, and then 20
MATERIAL MASTER BASICS change the relevant settings to account for the new material. MM02 (CHANGE MATERIAL MASTER) This transaction code allows you to make changes to existing material masters. However, not all elements of a material master can be amended in this transaction. For instance, the industry sector and material type are fixed once a material master is created. The material type can be changed, but through a separate transaction and certain restrictions apply. MM03 (DISPLAY MATERIAL MASTER) This transaction code simply allows you to display a given material master. By design, no changes may take place in this transaction. 2.2.1 Creating the material master To create a material master, you will enter transaction code MM01. Once you ve done that, you will be presented with the following screen containing five fields (see Figure 2.3). Figure 2.3: Create material opening screen 21
B Index 2-step picking... 200 ABC indicator... 137, 188 Account assignment Category... 47 Account assignment group... 88 Action control... 169 Allocation... 47 Allowance for additional stock... 200 Alpha factor... 174 Alternative BOM... 231 Approved batch record required... 93, 190 Assemble-to-order... 41, 44, 50, 69 Assemble-to-stock... 37 Assembly scrap %... 143 Assembly type... 48 Authorization group... 61 Automatic purchase order...117 Availability check 48, 58, 93, 162 Backflush... 150 Backwards consumption period... 158 Base quantity... 97, 180 Base unit of measure... 55 Basic data text... 65 Basic material... 67 Batch entry... 148 Batch management.94, 119, 190 Beta factor... 174 BOM usage... 231 Bulk material... 151 Bulk storage...199 CAD...67 Capacity check...49 Capacity usage...198 Cash discount...83 Catalog profile...210 Certificate type... 211 Change number...23 Commission group...89 Competitive materials...59 Component availability...49 Component scrap (%)...165 Conditions...84 Configurable material41, 50, 69, 94, 159, 162 Configuration...50 Configuration consumption...50 Configure planning variant...162 Configure variant...70 Consumption...44, 45, 47 Consumption mode...158 Container requirements.187 Co-product...151 Copy from...24 Costing lot size...232 Coverage profile...155 Critical part...121 Cross-plant configurable material...69 Cross-plant material status...59 Cross-project...161 Currency...220 Current period...220 249
INDEX Customer requirement...40, 41, 46, 50 Cycle count fixed...188 Cycle count physical inventory...187 Dangerous goods indicator profile...68 Date to...172 Default supply area...150 Delivering plant...82 Delivery unit...85 Delta factor...174 Deployment horizon...169 Discontinuation...167 Distribution chain material status...81 Distribution channel...27, 81 Distribution profile in plant98 Division...58, 79 Do not cost...228 Document link indicator...69 Documentation required.210 EAN category...64 EAN/UPC...64 Effective out date...167 Engineer-to-order...38 Environmentally relevant..68 Execute forecast...174 External customer replenishment parameters...98 External material group...56 Fair share rule...169 Field... 18, 19, 29, 31, 32 Fiscal year variant...157 Fixed periods...173 Fixed price co-product...233 Follow up material...168 Forecast model...171 Forecast periods...172 Forwards consumption period... 158 Future price... 224 Gamma factor... 174 General item category group61, 88 Global setting... 26, 54 Goods receipt processing time... 121, 153 Gross weight... 62 Group counter... 231 Hazardous material number... 187 Help... 29, 30 Highly viscous... 68 Historical periods... 172 In bulk/liquid... 68 Independent requirement40, 41, 43, 44, 50, 167 Individual / collective requirements... 165 Industry sector... 22 Industry standard description... 66 Information Set... 18 In-house production time... 152, 160, 179, 180 Initialization... 173 Initialization periods... 173 Inspection interval... 210 Inspection setup... 208 Inspection setup exists.. 208 Interoperation processing time... 152 Interoperation time... 180 Item category group... 88 JIT schedule... 126 Key for task list group... 231 Label form... 190 Label type... 189 Laboratory/design office.. 58 Last forecast... 171 250
INDEX Last price change date.. 224 LIFO pool... 226 LIFO/FIFO relevant... 226 Loading equipment quantity... 202 Loading group... 95 Logistics handling group 194 Lot size... 141 Lowest value: devaluation... 226 Make-to-order... 37, 44, 45 Make-to-stock 37, 44, 46, 48 Material freight group92, 117 Material group...56, 111 Material group: packaging materials... 65, 97 Material grouping... 177 Material is a variant... 70 Material is costed with quantity structure... 228 Material ledger activated at material level... 221 Material price determination: control... 220 Material pricing group... 87 Material related origin... 229 Material statistics group... 87 Material type... 23 Maximum lot size... 143 Maximum stock level... 143 Maximum storage period191 Message to inventory management... 199 Minimum delivery quantity84 Minimum lot size... 142 Minimum order quantity... 84 Minimum remaining shelf life191 Minimum safety stock... 155 Mixed MRP indicator... 159 Model selection... 173 Moving average price...217, 223 MRP area exists...145 MRP controller...141 MRP dependent requirements...167 MRP group...136 MRP type...137 Multiplier...172 Negative stock...98 Net weight...62 No MRP...47 Number of goods receipt slips...189 Old material number...56 Online assembly...49 Order type...49 Order unit...108 Organizational Level...25 Origin group...228 Over delivery tolerance..179 Overall profile...178 Overhead group...230 Page format...67 Parameter optimization..174 Performance assistance..31 Performance assistant...30 Period / Fiscal year...234 Period indicator...157 Period indicator for shelf life expiration date...192 Periods per season...172 Picking storage type...198 Planned delivery time...152, 160 Planned price...235, 236 Planned price date...236 Planning...45 Planning calendar...154 251
INDEX Planning conversion factor...159 Planning cycle...141 Planning material...159 Planning material base unit of measure...160 Planning plant...159 Planning strategy.36, 39, 41 Planning time fence...141 Planning variant...162 Plant...26, 27 Plant specific material status... 112, 114 Plant-specific...26 Previous price...224 Price control...223 Price unit...223, 226 Pricing reference material 89 Processing time96, 152, 180 Procurement type...147 Product allocation...58 Product attribute...90 Product hierarchy...59 Production scheduling profile...177 Production storage location...150 Production supervisor...177 Production unit...176 Production version.167, 233 Production/Inspection memo66 Profit center...98 Proposed unit of measure from material master.197 Purchase Order Text...128 Purchasing group...110 Purchasing value key...119 Push distribution...169 QM control key...211 QM in procurement is active...211 QM materials authorization group... 209 Qualify for free goods discount... 92 Qualify for free goods discount (purchasing) 115 Quota arrangement... 124 Quota arrangement usage... 122 Reference material for consumption... 172 Reference plant for consumption... 172 Reorder point... 140 Repetitive manufacturing... 169 Repetitive manufacturing profile... 169 Replacement part... 92 Requirement transfer... 48 Requirements class... 43, 46 Requirements group... 165 Requirements reduction indicator... 48 Requirements type... 40, 43, 44, 45, 46 Requirements type of customer requirements46 Reset forecast model automatically... 173 Results analysis key... 48 Rounding profile... 85, 143 Rounding rule for shelf life expiration date... 192 Rounding value... 144 Safety stock... 154 Safety time / actual range of coverage... 155 Safety time indicator... 155 Safety time period profile... 155 Sales area... 58, 76, 82 252
INDEX Sales organization... 27, 81 Sales Text... 100 Sales Unit... 79 Sales unit not variable... 80 Schedule margin key... 154 Screen... 17, 24 Selection method... 164 Selection procedure... 174 Serial number profile... 98 Serialization level... 98 Service level (%)... 154 Settlement profile... 47 Setup time... 96, 152, 179 Size/dimensions... 63 Source List... 124 Special movement indicator for warehouse management... 199 Special procurement... 148 Special procurement type for costing... 232 Splitting indicator... 157 Standard price... 216, 217, 223, 235 Stock determination group... 151, 194 Storage conditions... 187 Storage location... 27 Storage location for external procurement... 150 Storage percentage... 192 Storage section... 199 Storage type... 27 Storage type indicator for stock placement... 199 Storage type indicator for stock removal... 198 Storage unit type... 202 Strategy group... 39, 40, 43 Table... 19, 29, 32 Takt time... 143 Target QM system...212 Task list type...232 Tax Indicator for Material (purchasing)... 114 Technical delivery terms exist...213 Technical information 19, 29, 31 Temperature conditions.187 Time unit...191 Total replenishment lead time...160 Total shelf life...191 Total stock...223 Total value...224 Tracking limit...173 Transportation group...95 Under delivery tolerance 179 Unit of issue...176 Unit of measure for loading equipment...202 Unit of measure group...81 Unlimited delivery...179 Unlimited over delivery..120 Valid from... 60, 114, 224 Valuation based on batch specific unit of measure...224 Valuation category...220 Valuation class...222 Valuation class for project stock...223 Valuation class for sales order stock...222 Variable purchase order unit active... 110 Variance key...230 Version...165 Volume...63 Volume rebate group...88 Volume unit...63 253
INDEX Warehouse management unit of measure...196 Warehouse number...27 Weight group... 174 Weight unit... 62 254