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MATERIALS MANAGEMENT (MM)
- Rules -
Unit 11
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Business Process Integration
Rules
MM
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Rules
Defines the parameters for Master Data andTransactions
Determines functionality for Master Data and
Transactions
Relatively fixed
Changes as policy changes
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ERP
FIFinancial
Accounting
COControlling
PSProject
SystemWFWorkflow
ISIndustry
Solutions
MMMaterials
Mgmt.
HRHuman
Resources
SDSales and
Distribution
PPProduction
Planning
QMQuality
Mgmt.PMPlant Maintenance
SMServiceMgmt.
Client / Server
Integrated Business
Solution
ECEnterpriseControlling
AMFixed Assets
Mgmt.
Materials Management (MM)
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Unit 11 Overview
Reservations
Tolerances
Purchasing
Goods Receipt
Invoice Receipt
Automatic Account Assignment
Invoice Verification
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Reservations
A request to have a material ready for issue at afuture date for a production order, sales order,etc.
The purpose of a reservation is to ensure that amaterial is available when required and notassigned to another use
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Purchasing Tolerances
A tolerance limit is set for allowed variancebefore a warning/error message is displayed
Price variance
Compares the price in the purchase order with thevaluation price stored in the material master
Maximum cash discount
This tolerance limit is set to assure that cash discounts
do not exceed allowable discounts
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Goods Receipts Tolerances
Purchase order price quantity there are twotolerance levels maintained per item
The maximum percentage variance before a goods
receipt postings is not allowed A percent variance that generates a warning message
but allows posting
Moving average price variance
the maximumallowable moving average price change allowed
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Invoice Receipts Tolerances
Many tolerance limits that can be configuredfor invoice receipts: price, quantity, andblanket purchase orders These tolerances
include: Amount for item with or without order reference
Form small differences automatically
Percentage Over/Under Quantity Variance
Exceed amount: quantity variance
Blanket purchase order value and time limit
Price variance
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Automatic Account Assignment
Automatic account assignment is created toavoid manual postings of financial transactionswhich follow goods movements to reflect the
values of transferred materials Automatic account assignment is used across all
modules to keep track of the values of materialsthat are being consumed (e.g., production), or
transferred into other valuation areas of thecompany
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Automatic Account Assignment
(continued)
Automatic account assignment is a set of rulesand master data which enable the financialtracking of logistics movement
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Automatic Account Assignment
Components
Components of Automatic AccountAssignment
Chart of Accounts
Valuation Grouping Code
Transaction Key
Modifier for Transaction Key
Valuation Class
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Automatic Account Assignment
Valuation Grouping Code
Valuation grouping code - groups valuationareas together
Example: valuation area is plant, five plants exist in
the company, all five plants use the same accounts. Multiple valuation groups are possible
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Automatic Account Assignment
Valuation Grouping Code
Plant
P004Plant
P001
Grouping Code
G001
Plant P003
Plant P002
Grouping Code
G002
Plant P005
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Automatic Account Assignment
Transaction Keys
Transaction Keys
The transaction keys are used to determine accountsor posting keys for line items which are created
automatically by the system. The transaction keys are defined in the system.
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Automatic Account Assignment
Transaction Keys
Transaction Keys Inventory Postings
BSX
Offsetting Entry for Inventory Postings GBB
Materials Management Small Differences
DIF
Cost (price) differences (PPV) PRD
Goods receipt / inv. receipt clearing acct
WRX
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Automatic Account Assignment
Modifier
Modifier
modifies the transaction key forvarious movement types Blank Goods receipt from purchase order with
account assignment VBR Goods issue to consumption
VAX Goods issue to sales post to cost of goodssold
AUF
Goods receipt from a production order
postto production settlement
Etc. Many others
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Material Types & Valuation
Classes
Account category reference:
Builds the link between material types and thevaluation class(es)
0009
Reference for Finished Products
0005 Reference for Trading Goods
0002 Reference for Operating Supplies
0001 Reference for Raw Materials
Account Category Reference
FERT
HAWA
HIBE
ROH
Material Type
7920
3100
3030/3031
3000/3001/3002/3003
Valuation Class
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Material Types & Valuation
Classes
Material Type
ROH (Raw Material)
Acct Cat. Ref
0001 Raw Materials
Valuation Class
3000
(Steel)
Valuation Class
3001
(Paper)
Valuation Class3003
(Plastics)
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Account
790000
Automatic Account AssignmentPlantP001
Valuation Class
3100 (Trading Good)
Grouping Code
G000
Goods Movement
GBB (Goods Issue)
Account Modifier
VBR (Iss. To Cons.)
PlantP002
Valuation Class
3100 (Trading Good)
Grouping Code
G000
Goods Movement
GBB (Goods Issue)
Account Modifier
VBR (Iss. To Cons.)
PlantP003
Valuation Class
3100 (Trading Good)
Grouping Code
G001
Goods Movement
GBB (Goods Issue)
Account Modifier
VBR (Iss. To Cons.)
Account
790001
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Automatic Account Assignment
PlantMaterial TypePoints To:
G/L Account
Account
Modifier
Transaction
Event Key
Valuation
Grouping Code
Valuation
Class
Represented
By:
Chart of
Accounts
Additional
Information
Goods
MovementValuation AreaMaterial
Where Valueis recorded:Why 2:Why 1:Where Valued:What:
Plant P001HAWAPoints To:
790000VBRGBBG0003100
Represented
By:
Chart of
Accounts -C000
Issued toConsumptionGood IssuePlant P001BPEN000
Where Value
is recorded:Why 2:Why 1:Where Valued:What:
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Goods Receipt
Materials can be received as stock items or non-stock items
Receipt is possible from external or internal
sources
Individually / collectively
Tolerance limits can be set for goods receipt
Special movement type for initial inventory load
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Goods Receipt (continued)
Stock items can be received into restricted orunrestricted stock
Non-stock items are received into orders,
projects, cost centers
Materials that are usually received intoinventory can also be received into orders,
projects, cost centers
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Invoice Verification
Set parameters for invoice verification
Quantity, price, receiving date, P/O quantity
Updates material master if moving average price
Automatic account assignment for price differences -if allowed
Verify actual versus target
h
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3-Way Match
Purchase order
- Target quantity -- Target price -
Goods receipt
- Actual quantity -
Invoice receipt
- Actual price -
A t P bl S ttl t
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Accounts Payable Settlement
Purchase
Order
Goods
Receipt
Invoice
Receipt
Debit Credit
Payment
Program
Verification
U it 11 G 1 E i
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Unit 11, Group 1 Exercises
89. Set Default Values for Inventory ManagementReservations
90. Maintain Purchasing Tolerance Limits
91. Maintain Goods Receipt Tolerances
92. Maintain Invoice Receipt Tolerances93. Set (Review) Valuation Control
94. Assign Valuation Area Grouping
95. Define (Review) Valuation Classes
U it 11 G 2 E i
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Unit 11, Group 2 Exercises
96. Configure Automatic Postings for Goods Movement
97. Configure Automatic Postings for Taxes
98. Set Parameters for Invoice Verification
99. Create Default Values for Invoice Verification