apunte sap materials management questionarie mm.pdf

Materials Management Questionnaire

© 1997 SAP Technology Inc. 1


Instructions This questionnaire is a tool that you can use to collect information about your business that will be usef5l for tailoring

the R/3 System to your business needs. You will need Microsoft Word for Windows to work with this document.

Enter your answers in the fields after the questions, using the TAB key to move from field to field. You may save and

later change your answers in this questionnaire just as you would with any other Word document.

1 Global Settings

1.1 Currencies

Does your company use foreign currencies in

business documents? (e.g. buying products or

entering an invoice in foreign currency.)

Yes No

Does your company need foreign currency

balance sheet accounts?

Yes No

Roughly how many different foreign currencies

do you use?

List the foreign currencies for which you will

maintain exchange rates in the system:

It may be more convenient to enter exchange rates in a currency other than your local currency.

Example: Your local currency is Canadian dollars, but you want to enter USD exchange rates such as

DEM/USD, JPY/USD, and USD/CAD.

In which currency do you want to enter

exchange rates?

Local

currency

Other currency:

1.2 Units of Measure1

Do you use various different units of measure to

manage materials in your organization? (e.g.

each, pieces, kilos, pounds, gallons, boxes,…)

Yes No

List the units of measure you use:



1.2.1 If you use various units of measure …

Conversion factors for common units of weight, length, area and volume are standard in R/3a. (e.g. you may

post the receipt of 1 kilo of a material managed in grams, and R/3 will convert into 1000 grams).

Do you want to maintain “company specific”

conversion factors between unit of measure2?

Example: You purchase some products in

cartons of 12, other products in

cartons of 1000. When entering

goods receipts for these products,

you would like to enter the number

of cartons, and have R/3 convert

automatically into base units of

measure.

No Yes, we need these

“company specific”

conversion factors:

1.3 Calendar

Do some parts of your organization – branches,

departments, warehouses, production facilities,

etc. – observe different public holidays than the

rest of your organization (e.g., in one

production facility, the day after Thanksgiving is

a working day, although everywhere else it is a

holiday)?

No, the entire

organization

observes the same

holidays

Yes, we need

different “holiday

calendars” because:

Are the days of the week that are working days

different in some parts of your organization?

(e.g. one production facility operates seven days

a week; all the others operate Monday through

Friday)?

No, the entire

organization has

the same working

days

Yes, we need

different “factory

calendars” because:

2 Enterprise Structure

2.1 Material Valuation Areas

Is the value of a material the same throughout

the company, or can the value of the same

material be different in different plants (e.g. the

book value of a widget in factory A is $1; in

factory B its value is $0.97)?

The same materials may have a different

value in different parts of the company.

Materials will always have the same value

throughout the company.

We will never use product costing in R/3.

We will never use production planning in

R/3.

a Starting with 3.1G. Available now in the Simplification Group’s Pre-Configured Client.



2.2 Plants

The plant is the fundamental organizational entity in R/3 at which materials are managed. In practice, R/3

plants are often used to represent a production facility, a warehouse, or an operating site. Some reasons why

plants are important in R/3:

The quantity of inventory is tracked per planta. (e.g. you may have 10 widgets in plant A and 7

widgets in plant B).

The value of inventory may be tracked per plant, and the accounts posted to record

transactions involving inventory may be different in each plant (e.g. each widget has a book

value of $1 in plant A, and $1.07 in plant B).

Each plant has its own data for a material concerning areas such as purchasing, sales, and

production.

Each plant has its own material requirements planning.

List the different R/3 plants you will need, and

describe briefly why each should be a different

plant

2.3 Storage Locations

Each R/3 plant may have several “storage locations” in which the quantities of stocks are tracked (e.g. there

are 10 widgets in plant A, 7 in storage location 1, 3 in storage location 2, and non in storage location 3).

List the storage locations each of your plants

will need:

2.4 Purchasing Organizations

List the purchasing departments in your

organization:

Are these departments responsible for all

procurement?

These departments

handle all purchases.

Some purchasing is not

handled by these

departments.

Description:

2.4.1 Unless one department handles all purchasing…

Which of these departments negotiate pricing

terms and conditions with your suppliers?

Do they do this independently of each other?

What information do these departments share?

a Within a plant, distinct quantities of the same material may tracked in several different “storage location”.



How do the departments share the task of

procuring the goods and services required by

your organization (e.g. each production facility

responsible for its own procurement,

responsibility split by geographical area,

segregated by the type of item – manufacturing

raw materials versus other items,…)?

3 Master Data

3.1 Material Types

Which types of materials do you need in your organization:

Finished goods: materials, possibly spare parts / components, which you make and

sell.

Semi-finished goods: materials you have made which you will later use to make

something else with.

Raw materials: materials you buy which you will use to make something else with.

Packaging materials: raw materials used only for packaging. If you need this material

type, explain why you wish to distinguish packaging materials from other raw

materials:

Trading goods: items you buy to later sell without any manufacturing value added.

Non-stocked materials: items which you buy, but do not track in inventory. These

materials are charged to the appropriate expense account when purchased, and are not

received into stock. They may be delivered to the point of consumption directly.

Non-valuated materials: items you buy, and track only the quantity, but not the value

in inventory. These materials are charged to the appropriate expense account when

purchased. Once received into stock, inventory transactions (e.g. goods issue 2 pieces)

have no impact on accounting.

Service material: TBC obsolete in MM, replaced by service master and MM SRV

external service management program. May still be needed for SD to price services

rendered to customers.

3.2 Material Groups

In R/3 each material must belong to exactly one material group. Groups are a rough way to classify

materials. Among other things, material groups:

Limit the scope of standard reports and analyses

Can be used as search criteria

Can restrict user access to exclude specific groups

Please list the different material groups you will

want to use:



3.3 Classification3

Do you want to use a classification system for

the materials in your organization? A

classification system can be used to find

materials with similar characteristics.

No Yes

If yes, describe briefly how you intend to

classify materials:

3.4 Material Numbersa

When creating new materials, do you want R/3

to automatically assign numbers sequentially to

new materials, or will the end user enter the

material number?

R/3 always assigns

new numbers

The user will always

provide the number

when creating new

materials

Sometimes R/3 assigns

new numbers,

sometimes the user

enters new numbers.

If material numbers may be assigned by the end

user, describe the format:

Do you need multiple material numbers for the

same material (e.g. engineering number,

catalogue number for sales, universal product

codes, …)?

No Yes. Explain:

3.5 Universal Product Codes (UPC)

Do you or any of your suppliers use Universal

Product Codes (also known as EANs) to

identify your goods?

No Yes

Do you need to look up purchase orders based

on UPCs when receiving materials from your

suppliers?

No Yes

If you use UPCs for your products, please

describe how you derive these numbers:

3.6 Batch Management4

Is there any need to batch-manage your

materials (sub-divide the quantity of your

material into batches and track the batches

individually).

No Yes, because:

a Also see question “Material Master Data Transfer from Legacy System”



3.6.1 If You Need Batch Management…

Can the value of the same material be different

in different batches (e.g. The book value of each

widgets in batch 1 is $1, but widgets in batch 2

are valued at $1.05)5.

No Yes

At which level must batch numbers be unique? the batch number

alone uniquely

identifies a batch of a

material.

the batch number and

the material number

uniquely identifies a

batch of a material

the batch number, the

material number and

the plant number

uniquely identifies a

batch of a material

Will you need to mark certain batches of a

material to prevent or restrict them from being

withdrawn from stock?

No

Yes, prevent marked batches from being issued

from stock.

Yes, allow marked batches to be issued from stock,

but only after warning the user.

Describe any additional information you must

keep with a batch (e.g. expiry date, quality

related or grade information,…). Indicate if

different information may be required depending

on what is being batch managed:

When making a withdrawal from stock, how do

you select which batch to use? Describe the

method(s) you use:

3.7 Material Master Data Transfer from Legacy System

Do you want to transfer material master data

from a legacy system?

No Yes

During data transfer from your legacy system,

must you retain existing material numbering?

No Yes

If yes, describe the material number format:

3.8 Material Statuses

Do you want to restrict how a material may be

used within the system on a per material basis?6

Example: Prevent material XYZ from being

used in purchase orders, and issue a

No Yes



warning when it is used in an inventory

management transaction.

3.9 Engineering Change Management7

Do you need to control changes to data in your

material master record using SAP’s Engineering

Change Management?

Example: A change is requested, approved,

executed, becomes effective on a

specified date, and finally completed.

No Yes

3.10 Vendors / Suppliers

3.10.1 Vendor Roles8

For the same purchasing transaction, must you

deal with different parties for different roles?

Example: You order goods from vendor A who

then supplies the goods and presents

you with an invoice. However,

payment must be made to a different

party, vendor A’s headquarters.

No Yes

If yes, indicate the possible different roles. Order from

Goods

supplier

Invoice

presented by

Remit payment to

Any others? Explain:

3.10.2 Vendor Numbers9

When creating new vendors in the system, do

you want R/3 to automatically assign numbers

sequentially to new vendors, or will the end user

enter the vendor number?

R/3 always assigns new numbers

The user will always provide the number

when creating new vendors

Sometimes R/3 assigns new numbers,

sometimes the user enters new numbers

If vendor numbers may be assigned by the end

user, describe the format:

3.10.3 Types of Vendor Accounts

Do you foresee the need for different types of

vendor accounts?

No Yes



If yes, explain

3.10.4 Vendor Specific Standard Texts for Purchasing Documents10

Are there any instructions / information that you

would like to include in purchasing documents

for certain vendors but not others?

3.10.5 Payment Terms11 and Incoterms

Do your vendors offer discounts for prompt

payment (e.g. 1% cash discount within 10 days;

30 days due net)?

No Yes

Are Incoterms specified in your purchasing

documents (e.g. FOB Singapore, CIF San

Francisco,…)?

No Yes

3.10.6 Vendor Evaluation

Skip this section if you do not perform vendor evaluations.

Which of the following criteria do you use to

compute scores for vendor evaluation?

Price

Quality (need SAP’s

QM module)

On time deliveries

Quantity reliability

Compliance with

shipping instructions

other

4 Purchasing

4.1 Buyers12

A purchasing group is a person or group of

people responsible for creating and subsequently

monitoring the progress of a purchasing

documenta.

Purchasing groups are to represent

individual buyers.

Purchasing groups are to represent a groups

of buyers.

List the some of the purchasing groups you will

need, indicate how complete the list is, and who

should maintain it:

4.2 Define Shipping Instructions13

Do you include item specific shipping or

packing instructions in the purchasing

documents you issue to your suppliers (e.g.

No Yes

aYou can limit a user’s access to purchasing documents belonging to his purchasing group.



heavy duty corrugated cardboard packaging)?

If yes, list the instructions:

Do you want to record how well vendors

comply with the instructions when you receive

the goods (e.g. full compliance, ignored

instructions, …)a?

No Yes

If yes, list the criteria for each shipping

instruction:

4.3 Deadline Monitoring14

Do you want to send reminders to inform your

vendor of an impending delivery?

No

Yes, reminders are sent days before

the agreed delivery date.

Do you want to send reminders to notify your

vendors of overdue deliveries?

No

Yes, reminders are sent when an order is

overdue days.

Should deadline monitoring be different for

different materials?

No, same deadline monitoring for all

materials.

Yes (explain):

4.4 Under / Over Delivery Tolerance15

4.4.1 Over Deliveries

Do you normally accept over deliveries from

your vendors? An over delivery is when the

quantity delivered is more than the (open) order

quantity in purchasing document.

No Yes

If yes, you would normally (by default) tolerate

over deliveries of up to what percentageb?

Should this default tolerance be different for


No, same

default

tolerance for

all materials.

Yes (explain):

a Useful for vendor evaluations. b Unless the purchasing document is changed, goods receipts will not be possible for a quantity that exceeds this tolerance limit.



4.4.2 Under Deliveries16

When the quantity a vendor delivers is less than the (open) order quantity in a purchasing document, this can

be interpreted either as a “partial delivery”, with more deliveries expected later or as an “under delivery”,

with no further deliveries expected. When the shortfall is considered an “under delivery,” after receiving the

goods, the system would behave as though the order item’s open quantity were zero.

Would you ever want the second interpretation

– “under delivery” as opposed to “partial

delivery” – in the case of minor shortfalls in

quantity delivered?

No Yes

If yes, what threshold would you use to

distinguish between the two cases?

A shortfall of up to percent should

normally (by default) be considered an under

delivery; any shortfall greater than this

should be considered a partial delivery.

Should this default threshold be different for


No, same

default

threshold for

all materials

Yes, explain:

4.5 Certificates of Origin / Customs Tariff References17

Do you need to track certificates of origin and /

or customs tariff reference numbers for items

you purchase that are produced in foreign

countries?

No Yes

4.6 Source Determination18

Do you want to manage a list of approved

suppliers for your materials? This means that if a

material is subject to a “source list”

requirement, you can only buy the material from

suppliers on the list.

Yes, for all materials.

Yes, for all materials, but only in these

plants:

For specific materials only (specify):

No.

Do some of your materials have a fixed vendor

from whom you must always purchase that

material.

in a given plant?

across the entire

company?

everywhere except in

certain plants?

Are some of your suppliers specific to a

geographic region?

Example: ACME Widgets supplies plants in the

western region; ABC Widgets

supplies plants in the eastern region.

A western region plant should not

Do not need this feature.

Want this feature, warning only if vendor

does not cover the plant’s region.

Want this feature, prevent orders from

vendors that do not cover a plant’s region.



order widgets from an eastern region

supplier.

If you want to use this feature, indicate the

region to which each of your plants belongs:

4.7 Quota Arrangement

Do you apportion the purchase volume of

certain materials among several vendors?

No Yes

4.8 Types of Purchasing

Documents

Indicate which purchasing documents you plan to use in the sections which follow.

4.8.1 Requests for Quotation / Quotations

These documents are used to solicit a vendor’s prices and conditions for goods and services you

need to purchase.

Do you invite several vendors to quote prices,

terms and conditions in a tender / bid / request

for quotation process?

No Yes

4.8.2 Purchase Requisitions

Purchase Requisition

Outline Agreement Request (a requisition for a contract or scheduling agreement)

4.8.2.1 Purchase Requisition Processing Time19

How many days does it take, typically, before a

purchase requisition becomes demand in a

purchasing document given to a suppliera?

Example: In plant A, within two days the

purchasing department will

convert a requisition for 10

widgets into a purchase order

issued to a supplier.

Processing times per plant:

4.8.3 Purchase Orders

Purchase Order

a This would be used by the system to calculate replenishment lead times.



4.8.4 Contracts (a.k.a. blanket orders)

Quantity Contract

Value Contract

4.8.5 Scheduling Agreements

Scheduling Agreement

A purchasing document containing a list of hard and soft deliveries.

4.8.6 Stock Transport Orders

If you have several “plants”, do you want to use

purchasing documents to plan and manage

movements of goods between plants

(functionality similar to purchasing documents,

but without invoicing)?

No Yes

If yes, which documents do you plan to use? Stock Transport Order (similar to a

purchase order)

Transport Scheduling Agreement (similar

to scheduling agreement).

4.9 Approval of Purchasing Documents

Indicate which purchasing documents should be subject to approval by someone (or possibly several people)

before the documents may be issued to vendors.

Describe the approval process and under what

circumstances the approval process applies.

Example: all requisitions for over $1000

must be approved by the

purchasing department manager,

all requisitions for over $10000

must be approved by the

department manager and the chief

financial officer.

Requests for Quotations / Quotations (RFQs)

Purchase Requisitions

Purchase Orders (POs)

Contracts

Scheduling Agreements

4.10 Account Assignments in Purchasing Documents

By default, purchasing document items are purchased “for stock” and are automatically charged to stock

accounts when the goods are received.

Items may also be purchased “for consumption”, to be charged to accounts other than the automatically

determined stock account, when the goods are received. In such cases, additional accounting information

would have to be specified in the purchasing document.



When items are purchased “for consumption”,

there are several “account assignment

categories”, or ways purchasing document items

can be charged. Which will you use?

Asset account

Cost center

Production order

Project

Sales order

Other – please

specify

If you do not want all the account assignment

categories you have selected to be available in

all the purchasing documents you will use,

indicate which account assignment categories

you want per purchasing document type:

4.10.1 Authorization Check for G/L Accounts20

Do you want to prevent users from charging

purchasing document items to accounts which

they are not authorized to post?

No Yes

If yes, in which purchasing documents: Purchase Requisitions

Purchase Orders

Contracts

Scheduling Agreements

4.11 Item Categories

4.11.1 Vendor Consignment21

Do you purchase any materials from vendors on

a consignment basis?

No Yes

If yes, in which purchasing documents:

4.11.2 Subcontracting

Do you need purchasing transactions to support

subcontracting (i.e., you issue material

components to a vendor who processes them

into different materials for you)?

No Yes

If yes, in which purchasing documents:

4.11.3 Third Party or “Drop Ship”

Do you ever issue purchase orders to a vendor

with instructions that the items be supplied

directly to a customer (the ordered items are not

received by your company)?

No Yes

If yes, in which purchasing documents?



4.11.4 Services

Do you issue purchase orders for services? No Yes

4.12 Tolerance Limits for Archiving22

How long would you like to retain in the SAP

system a purchasing document which has been

completely received and invoiced?

Wait at least days after a purchasing

document has been completed before

marking the document for archiving and

deletion.

Wait at least days after a purchasing

document has been marked before archiving

and then deleting it.

4.13 Purchase Order Price Tolerance Limits23

When processing a purchase order, do you want

the system to check whether the purchase order

price versus the material’s valuation price (book

value) in your system is within a pre-defined

tolerance limit?

No Yes

If yes, indicate: maximum percentage difference you are willing to

tolerate without a warning:

maximum dollar amount difference you are willing to

tolerate without a warning:

4.14 Order Confirmation and Shipping Notification24

Once you have issued a purchasing document to

a vendor, do you want to track “confirmations”

your vendor may return to you regarding the

order, such as:

Order acknowledgments which confirm the order

dates and quantities.

Shipping notifications, informing you that the vendor

has shipped the goods.a

Any other – describe:

Under what circumstances would you require

confirmations?

The system can help you to monitor late

confirmations. When should a confirmation be

considered late?

Acknowledgment should be received within

days of the order date.

Shipping notifications should be received at least

days before order delivery date.

a You can have goods receipts with reference to shipping notifications.



Do you expect several different confirmation

scenarios will be needed, involving different

types of confirmations and monitoring

parameters?

No Yes.

Describe:

4.15 Purchasing Pricing and Conditions25

4.15.1 General

What pricing components do you use in your

purchasing documents?

Example: the price of the material itself,

discounts, surcharges, …

List the pricing components you need.

Also indicate if quantity based (e.g. a surcharge

of $1 per unit ordered), value based (e.g. a

discount of %10), or a dollar amount (e.g. a $10

surcharge).

You can use pricing components in purchasing documents to make provisions for incidental procurement

costs, such as freight or customs duties. These components are automatically charged to the material when

the goods are received, and can be invoiced separately.

Describe any such pricing components you will

need:

Based on all of the pricing components you

have listed in this section, are there several

distinct methods to calculate the price of a

material (think of a method as a set of allowable

pricing components)?

Example: one method, used for foreign vendors,

includes customs duties as a possible

pricing component. Another method,

for domestic vendors, does not.

4.15.2 Periodic Volume Rebates26

Do any of your vendors offer volume rebates

based on the dollar volume of business done

over a period of time?

No Yes:

4.15.3 Taxes27

Can the materials you purchase be subject to

different tax rates depending on:

the material purchased:

the plant for which the material is



purchased:

the material’s country and/or state of origin:

other factors:

4.16 Printing / Transmission of Purchasing Documents to Vendors

4.16.1 Types of Purchasing Document to Output

What kinds of purchasing document output

(typically, printouts, but could be fax, EDI,…)

do you expect to send to your vendors?

Complete Purchasing Document

Change Notice. (When a purchasing

document which has already been outputted

and sent to a vendor is changed. You could

only output the changes instead of the entire

document.)

Reminders (sent before a due date).

Urging Letters or “Expediters” (sent after a

due date)

If you use order confirmations and / or shipping

notifications:

Urging Letter for Outstanding

Acknowledgment or Shipping Notification

If you use scheduling agreements: Rolling Delivery Schedule

Urging Letter Related to Rolling Delivery

Schedules

4.16.2 Electronic Data Interchange (EDI)

Do you plan to exchange purchasing documents

with your vendors not in paper form but

electronically with EDI?

No Yes

If yes, which messages:

What protocol:

4.17 Purchasing Data Transfer From Legacy System

4.17.1 Purchasing Documents

Would you like to transfer open purchasing

documents from your existing system into the

R/3 system?

No Yes

If yes, indicate which types of documents and Purchase requisitions: Scheduling agreements:



give a rough estimate of the total number of line

items for each type of document.

Purchase orders:

Contracts:

other , describe:

4.17.2 Price Information

Would you like to transfer vendor / material

specific price data from your existing system?

No Yes

If yes, give a rough estimate of the number of

different vendor / material prices to be

transferred:

5 Inventory Management

In this section, indicate which types of inventory transactions you will use.

5.1 Types of Inventory Transactions / Goods Movements

5.1.1 Receipts

Goods receipt from vendor with reference to purchase order.

Goods receipt from production

Goods receipt from customer returns

Goods receipt into inspection, considered part of inventory

Goods receipt into inspection (not considered part of inventory yet, i.e., no accounting

postings)

Goods receipt from subcontracting vendor with reference to subcontracting order (consumes

components issued to vendor)

Other, describe:

5.1.2 Issues

Goods issue to customer (Sales)

Goods issue for production

Goods issue for consumption (e.g. issue to cost center)

Returns to vendor

Goods issue to subcontracting vendor with reference to subcontracting order

Goods issue to scrap



Goods issue for sampling

Other, describe:

5.1.3 Transfers

Transfer to different company

Transfer to different plant

Transfer to different location

Other, describe:

5.2 Printed Goods Receipt / Issue Slips28

When a goods movement takes place, do you

want to print a hard copy of the document

evidencing the movement?

No Yes. Number of

copies:

Any comments regarding the printing of goods

movement documents?

5.3 Specially Managed Stock

5.3.1 Customer Consignment

Do you need to track company owned stock

held by customers (i.e., do your customers

purchase materials from you on a consignment

basis)?

No Yes

5.3.2 Vendor Consignment

Do you need to track vendor owned stock held

by your company (i.e., do you purchase

materials from your vendors on a consignment

basis)?

No Yes

5.3.3 Returnable packaging

5.3.3.1 Vendor Owned

Do you need to track returnable packaging such

as pallets or containers that are stored on your

premises but belong to the vendor?

No Yes

5.3.3.2 Company Owned

Do you need to track company owned No Yes



returnable packaging that may be stored at a

vendor’s premises?

5.3.4 Subcontracting

Do you need to track company owned stock

issued to subcontracting vendors?

No Yes

5.4 Manual Account Assignment29

When issuing, transferring, or receiving goods,

the system determines the accounts to post

automatically. Is there ever a need for the

person recording the transaction to override the

system and enter manually the G/L account to

be debiteda?

No Yes. Describe for

which movement

types:

5.5 Availability Check30

During goods issues or transfers, the system can run an availability check to ensure that the quantity being

issued is not needed for another purpose (e.g. reserved for a production order).

Do you want the system to check availability? No

Yes, warn user if

unavailable.

Yes, prevent user from

issuing if unavailable.

5.6 Negative Stock Quantity31

Is there a compelling reason why negative stock

quantities should be allowed in the system?b

No Yes, because

If yes, in which plants and storage locations

should negative stock quantities be allowed?

5.7 Issuing Components of a Bill of Material32

Do you need to make goods issues against a

BOM for all the BOM’s components? c

No Yes

If yes, should the system first try to issue

components from vendor consignment stock, if

any exists, before issuing from company owned

stock?

No Yes

a thus bypassing the automatic account determination, and possibly overriding the account assignment made in a purchasing

document. b Standard priced materials only; not possible for moving average priced materials. c This is distinct from issuing to a reservation or to a production order, both of which may also be issues for all components of a

BOM.



5.8 Automatic Storage Location Creation33

Material master data for a storage location must

exist before a material may be stored in that

location. Do you want the system to

automatically create this data the first time a

movement is posted to that locationa, or do you

want to create this master data manually?

Automatic storage location creation in all

plants.

Manual storage location creation because:

Manual storage location creation in which

plants?

In these plants, for which movement types

should storage location creation remain

automaticb?

5.9 Reservations34

Reservationsc are typically created automatically to reserve material for production orders, but end users

also create reservations manually. When the system checks material availability (e.g., for MRP, during

availability checks for goods issues, for sales orders, …), reserved materials are usually considered

unavailable.

Will you need reservations? No (skip rest of this section)

Yes

Unused reservations should be deleted days

after the reservation date.

It should be impossible to obtain material against a

reservation more than days in advance of the

reservation date.

If the values for the above two parameters

should be different in different plants, explain:

When creating a reservation manually, if there is

a compelling reason why the system should not

run an availability check based on ATP logic,

please explain:

a One side effect of automatic creation: a material may be stored in any storage location at a given plant, without restriction TBC. b We suggest that storage location creation be automatic for the movement type used to enter initial balance of stock from legacy

system. c Not to be confused with material reserved for sales orders, which uses a different mechanism.



5.10 Quality Inspection

Do you want to use the QM module to support

quality inspection of goods received into

inventory?

No Yes

5.11 Document life35

How long would you like to retain in the SAP

system documents evidencing material

movements?

Wait at least days after a material

movement document has been created before

archiving and then deleting it.

6 Physical Inventory (Stock

Take)

6.1 Physical Inventory Methods

6.1.1 Cycle counting

Do you want to use cycle counting (counting

some items more frequently than others based

on ABC analysis).

No (skip rest

of section)

Yes

In the standard system, the ABC analysis is

based on dollar amount of consumption. For

each of up to 4 categories, give counting

frequency per year and percentages.

Example: A items, ranked in the top 40% by $

amount of consumption, are to be

counted 12 times per year; B items

are ranked in the next 30%, and

counted only 2 times per year; all

other items are C items counted once

a year.

A

B

C

D

6.1.2 Sampling

Do you want to use sampling: counting only a

randomly selected portion of the items subject

to inventory and extrapolating the results to all

units?

No Yes



6.2 Posting Tolerances

Do you want to segregate the users who post

physical inventory differences into groups

distinguished by the maximum dollar amount of

difference each may post?

No Yes

If yes, indicate for each group the maximum

dollar amount per item counted that may be

posted:

7 Inventory Valuation

7.1 Price control36

Do you value your stocks using: Standard price

Moving average price

Different valuation methods for different

material types? Please explain:

7.2 Split valuation37

At a given plant, can the same material have

more than one valuation price?

Examples: a) Different batches of the same

material have different valuation

prices

b) The same material may be made

or bought. When produced in

house, the material is valued at

standard price, but when

purchased it is valued at moving

average price.

No Yes

7.3 Account determination38

Roughly how many different G/L accounts do

you need for inventory? (e.g., One account for

raw materials, one for finished products, …)

Roughly how many different material

consumption accounts do you need?



7.4 Balance Sheet Valuation39

Do you apply any of the following valuation

methods for year end valuation?

Lowest-value

LIFO

Valuation

FIFO Valuation

8 Invoice Verification

Describe briefly how you verify vendor invoices

for goods or services purchased:

8.1 Taxes

List the types of taxes that may be appear on a

vendor’s invoice:

List those that are so commonly used that you

would like the system to propose them as

default when entering invoices: 40

If there are several different types of taxes, do

groups of these types of taxes apply together in

different circumstances?41

8.2 Blocking Invoices for Payment

Invoices may be entered into the system but automatically blocked for payment, usually because of

discrepancies. Blocked invoices may only be released for payment in a separate process, after having been

investigated.

How much variance between quantity received

and quantity invoiced are you willing to tolerate

before blocking an invoice?42

None

Tolerate quantity variance up to

dollars.

How much variance between PO price and

invoice price are you willing to tolerate?43

None

Tolerate price variance of up to

dollars or percent, whichever is less.

Do you want to block invoices for late delivery

of goods?44

No

Yes, block invoices if days_late *

value_of_item is greater than: .

Do you want to block invoice items whose

value exceeds a certain amount? 45

No Yes

If yes, what is the threshold value for invoice

items with purchase order reference?



For items without purchase order reference?

Do you want to randomly block invoices?46

No

Yes, block percent of all invoice

whose value is larger than dollars

(probability of blocking an invoice with

lesser value decreases proportionally to the

value).

8.3 Document Life47

How long would you like to retain for reference

in the SAP system vendor invoices?

Wait at least days after a vendor invoice

has been created before archiving and then

deleting it.

9



Abbreviations

AKA Also Known As

ATP Available To Promise

BOM Bill of Material

EAN International Article Number, same as Universal Product Code (UPC) in United States

EDI Electronic Data Interchange

G/L Account General Ledger Account

MM Material Management

MM SRV Material Management External Services Management

MRP Material Requirements Planning

PO Purchase Order

PREQ Purchase Requisition

QM Quality Management

RFQ Request For Quotation

TBC To Be Confirmed

TBD To Be Determined or To Be Defined

UPC Universal Product Code, see also EAN



End Notes 1 OMSC Check unit of measurement 2 OMS1 Group together units of measure 3 Cross-Application Components | Classification and also OMS2 Define attributes of material types for material master

classification views. 4 Logistics General | Batch Management, also Field Selection for Batches and Vendor Consignment 5 Materials Management | Valuation and account assignment | Set split valuation 6 OMS4 Define material statuses 7 Logistics General | Engineering Change Management 8 WOLP Purchasing | Set up partner determination 9 OMSG and OMSJ under Logistics Master Data: Business Partners | Vendors | Control 10 OMGA and OMGB under Purchasing | Vendor master | Define text types … 11 OME2 Define terms of payment and OMSQ Check Incoterms 12 OME4 Create purchasing groups 13 OMEK Define shipping instructions, also OME1 Define purchasing value keys 14 OME1 Define purchasing value keys 15 OME1 Define purchasing value keys 16 OMCD Set “delivery completed” indicator 17 OMEL Maintain inspection certificate categories 18 OME5 Define source list requirement at plant and Source determination 19 OMEW Purchase requisition | Processing time 20 Set up authorization check for G/L account under PReq, PO, contract, scheduling agreement. 21 Also, Field Selection for Batches and Vendor Consignment 22 Define tolerance limit for archiving, per purchasing document category 23 OMEU Purchase order processing | Set tolerance limits. 24 Purchasing | Shipping notification 25 Purchasing | Conditions 26 Purchasing | Subsequent Settlement 27 Purchasing | Taxes 28 Inventory management | Print Control 29 OMB6, OMCH, and OMJ9 Set manual account assignment 30 OMCP Goods Issue / Transfer Postings | Set up dynamic availability check. 31 OMJ1 Allow negative stock 32 OSP7 Define withdrawal sequence for BOM withdrawal 33 OMB2 and OMB3, Create storage location automatically 34 Inventory management | Reservation 35 OMB9 Inventory management | Define document life 36 OMW1 Define price control for material types 37 Valuation and account assignment | Set split valuation 38 Valuation and account assignment | Account determination 39 Valuation and account assignment | Balance Sheet Valuation Procedure 40 OMR2 Incoming Invoice | Set default values 41 The groups = Tax codes, configured in FI FTXP. In MM you can configure if an invoice may have more than one tax code: OMRL

Incoming Invoice | Determine tax version 42 Invoice Block | Set tolerance limits 43 Invoice Block | Set tolerance limits 44 Invoice Block | Set tolerance limits 45 Invoice Block | Set tolerance limits and Item amount check 46 Invoice Block | Stochastic Block 47 OMRZ Invoice verification | Define document life