Configuring MM Goods Receipt

Slide 2

Problems Goods can disappear due to theft

What is a case of Lipitor worth? Too much material on the shop floor

make it difficult to get around And goods might get damaged or

misplaced

Slide 3

Solution A goods reservation is a request to

the warehouse to withdraw materials at a later date for a particular purpose This way goods will be available when

needed We call this a reservation for goods issue

Note that reservations are taken into account by MRP (more later)

Slide 4

Reservation (Types) Manual

Make by a user Automatic

Generated by the SAP R/3 system Reorder point planning

Slide 5

Reservation (Contents) Which material is needed How much When From where (plant or warehouse) To where (pant or customer)

Slide 6

Reservation (Outcomes) A reservation document providing an

audit trail of the request Reserved stock in the material master

record is increased In MRP, the available stock is reduced

by the reserved quantity

Slide 7

Reservation Details Whether goods movements are allowed

for reservation items If the reservation date is greater than

the days movement allowed, then goods movements are not allowed yet We cannot move reserved goods too soon

The retention period is how long the reservation is maintained by the system until it expires (if the goods in the reservation are never used)

Slide 8

Reservation Details (Illustration)

Slide 9

Materials Management Tolerances Suppose we ordered 1000 units but

received 1024 units MM tolerances allow users to accept

discrepancies within tolerable ranges The cost to correct would likely be

greater than the cost to fix

Slide 10

Materials Management Tolerances A tolerance key depicts the type of

tolerance / variance Upper and lower limit values can be

express as Absolute values Percentanges

Slide 11

Purchasing Tolerance Keys Purchasing tolerances apply to

purchasing and the allowable variance in cash discounts

Other tolerance limits can be created

Slide 12

Purchasing / Invoicing Tolerances Here, we are specifying the deviation

between the purchase order and the amount of the corresponding invoice

Slide 13

Goods Receipt Tolerances The variation between a purchase order

or production order and the actual amount received that will be allowed

Slide 14

Goods Receipt Tolerance Keys

Slide 15

Goods Receipt Tolerance Keys B1 causes an error message B2 causes a warning message

Slide 16

Invoice Tolerance Limits

Slide 17

Invoice Tolerance Limits