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CM, Warehouse Management

Track Multiple Manufacturer Part Numbers Effectively

Using Manufacturer Part Number Management

y Suresh Veeraraghavan, Manager, Capgemini (June 2010) • June 3, 2010

Learn how you can set up manufacturer part numbers (MPNs) to manage your multiple vendor part

numbers efficiently. These are the configuration steps, tips and tricks, and common pitfalls you

need to watch out for when implementing this functionality.

Key Concept

A manufacturer part number (MPN) is a part number by which a material provided by a

manufacturer is identified. A company can use the same part number for parts supplied by multiple

manufacturers. MPN is a useful functionality to help in managing and tracking these parts.

ypically in any industry, parts are manufactured at the manufacturer’s plant and then supplied to the

endor. The vendor in turn distributes them to the end company that consumes them. In this supply

ain there can be several manufacturers and several vendors.

endors and manufacturers use several part numbers to represent like materials, thereby making it

fficult for companies that buy from them to track these parts. Figure 1 explains the challenge.

Figure 1  Example of multiple MPNs supplied by manufacturers (MPN A, MPN B, MPN C)

anufacturers A, B, and C all provide the same part, but the part numbers differ: MPN A, MPN B, and

PN C. The company that procures these part numbers from these manufacturers uses a single inventory

art number to represent them. This presents a challenge to the company as it now has to manage and

ack these various manufacturer part numbers. To overcome this challenge, SAP has a useful

nctionality called manufacturer part number (MPN). The following four scenarios are examples of how

PNs can address the challenge.

cenario 1: Single MPN

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the simplest scenario, each inventory part number of the company has only one MPN. The following

eps explain how to set up scenario 1:

ep 1. Activate the global setting for MPN. Follow menu path Logistics (General)  ( Material Master >

asic Settings >  Make Global Settings (Figure 2). Activate MPN Manager by checking the Manufacturer

art no. check box.

Figure 2  Activate MPN management

nabling the global setting for MPN shows additional fields on the material master – Manufacturer part

o., Manufacturer Profile (Mfr. Part Profile), and Manufacturer (Manufact) in Figure 3.

ep 2. In the inventory part number (Material number 544), the manufacturer’s part number is

aintained as a free text field in the purchasing view (Mfr Part Number ABC).

he manufacturer ABC in the Mfr Part Number field  is assigned to 544, which is the inventory part

umber in the Material field (Figure 3).

Figure 3Mfr Part Number ABC assigned to Material 544 (which is the inventory part number)

his scenario does not require any configuration. Once the MPN is assigned to the inventory part number,

flows into the purchase order and the follow-on documents.

cenario 2: The Vendor Is the Same as the Manufacturer 

this scenario the vendor is the same as manufacturer. Take the following steps to enable this it:

ep 1. Activate the global setting for the MPN as done in scenario 1.

ep 2. Set up the MPN profile. The MPN profile controls how the MPN works (Figure 4). Several key

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dicators are associated with the profile.

Figure 4  Define the manufacturing profile

he fields in Figure 4 are as follows:

Order Text for MPN Material controls the text that defaults on the purchase order from the

manufacturing part number.

MPN Mandatory controls whether the MPN is mandatory on the purchase order. If this indicator

check box is checked, then the purchase order must have an MPN on it.

Change in MPN controls if the MPN can be changed on the purchase order. If the indicator check

box is checked, the MPN can be changed.

QM Processing for MPN is not activated for this scenario. Another scenario describes how this

indicator works.

AMPL (approved management part list) Management controls if the approved manufacturing part

list is maintained or not and from where the MPN is procured (Figure 5). The inventory part

number (Int. material no. 544) can be linked to the manufacturer (Manufactur 198) and the

manufactured parts (MPN Materials “MNFR_A” and “MNFR_B”. The validity dates ( Valid from and

Valid to) can be defined for the manufacturer and the MPN. If for any reason the manufacturer

needs to be blocked, this can be done as well (Bloc 001), and then this MPN is not proposed as a

source.

Updating Logistics Information System (LIS) controls if the LIS is updated or not. LIS can report

by MPN if this indicator is switched on. Entering “1” in Checkg Rule: Manuf ensures a check is

made to see if the manufacturer is valid by enabling a special partner function HS. HS is the value

used by SAP to identify a manufacturer as a partner (Partner functions are used to identify the

various business partners a company is doing business with. Each partner is identified by a

partner function. For example, VN partner function is the value used to identify a vendor and GS is

the value used to identify a goods vendor. Similarly, HS is used to identify a manufacturing plant.

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Figure 5Approved MPN profile defined

ep 3. Once the configuration setup is completed, the MPN profile defined in step 2 is manually assigned

the inventory managed parts (Figure 6).

Figure 6 Mfr Part Profile Z000 is assigned to inventory managed part

ep 4. Assign the Manufacturing plant partner (MP) function to the vendor manually ( Figure 7). MP is a

ecial partner function which identifies the manufacturing plant. In this case, the manufacturer and the

endor are the same, so the number for the manufacturer and vendor are the same. There is no need to

eate separate manufacturer records.

Figure 7Manufacturer vendor partner function MP assigned to vendor

ep 5. Create the MPNs. Material type HERS is used for this purpose. HERS has been created

ecifically to represent MPNs. It has two views, namely purchasing and basic data. Assign the inventory

anaged part identified by Int. material number 544 to the Mfr. Part Number Manufacturer_A as shown

Figure 8. If there are multiple MPNs, the inventory part number is assigned to each of the MPNs

eated.

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Figure 8 Assign Inventory part number (Int. material number) to the Mfr Part Number

(MANUFACTURER_A)

ep 6. Set up the purchase information record (PIR) for the MPN. This is set up like any other PIR. Use

ansaction code ME11 to set up the PIR for the MPN and vendor.

ep 7. Create the approved manufacturer parts list (as shown in Figure 5). Set up the approved

anufacturer parts list by associating the MPN materials to the inventory managed part (Int Material

o.).

cenario 3: Vendor Is Not the Same as the Manufacturer 

his scenario represents the case in which the vendors and the manufacturers are different. The setup

llows the same steps as explained in the previous scenario with one key difference: As the manufacturer

nd vendor are different the MPN has to be created as vendor records as well. A special account group

lled MNFR is used to create these records manually. If there are multiple manufacturing plants for the

anufacturer each plant is created as a manufacturer.

cenario 4: MPN with SAP Quality Management Activation

some industries such as bio-tech, SAP Quality Management (SAP QM) is activated to perform

spections and pass or fail inspection lots. The MPN can be used in conjunction with SAP QM. The

llowing steps highlight the key differences in terms of the steps that need to be carried out in addition

all the previous steps in the article.

ep 1. Create the MPN profile as before. In the MPN profile, SAP QM processing for MPN should be

tivated. The approved manufacturer part list does not need to be maintained as the same functionality

provided by SAP QM module activation. You do not need to set up AMPL if SAP QM is activated. This is

own in Figure 9.

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Figure 9SAP QM processing for MPN (AMPL Management is deactivated)

ep 2. Assign the SAP QM Control Key to the inventory managed part. The key controls how the

ventory managed part is inspected upon receipt. The SAP QM Control Key is set up as shown in Figure

and is associated with the inventory managed part (Material 544) in Figure 10 in the SAP QM view of 

e Material.

Figure 10 QM Control Key assigned to inventory managed part (Material 544)

ep 3. Set up the MPN and create a quality information record (QIR) for it. Figure 11 shows how a QIR

created. The QIR is set up for an MPN, manufacturer and vendor. The QIR will then define whether thePN, manufacturer, and vendor are active or blocked. When a source (an MPN) has to be assigned to a

quisition in transaction ME57 this MPN will be proposed as a valid source at the time of processing of a

quisition.

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Figure 11  QIR created for MPN (Material), Vendor, and Manufacturer

ow that I have described the various scenarios and steps in setting up a manufacturer part number, I

ll walk you through a procure-to-pay scenario with the manufacturer part number activation so that

ou can see MPN in action.

rst, you need to make sure that you have completed the configuration of MPN as described in scenario

and that you have set up the vendor, manufacturer, MPN, inventory part number, and PIR.

Configuration of MPN is completed as described in scenario 4 above

Vendor, Manufacturer, MPN, inventory part number, and PIR have already been set up

ep 1. The purchase requisition has been created for the inventory managed part (Figure 12). These

quisitions can be created manually or automatically through material requirements planning (MRP).

Figure 12 Purchase requisition created for the inventory managed part

ep 2. Maintain the source list for the inventory managed part with the manufacturer part number. Theurce list is a list of approved vendors and the MPNs they are providing. If 1 is entered into the M (MRP

dicator) column, MRP will automatically select this record (e.g., MNFR_C as the manufacturer and 199

the vendor (Figure 13). A fixed vendor can be used as a default source of supply when assigning

urchase requisitions through MRP.

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Figure 13 Source list maintained for inventory managed part and manufacturer part

ep 3. Assign the source to the purchase requisition. Use transaction ME57 to assign the source to the

urchase requisition. The purchase requisition number is provided as an input and upon clicking the

ssign Automatically tab, valid sources defined in the previous step will be proposed (MPN Material)

igure 14).

Figure 14 Valid sources proposed with the manufacturer part

ep 4. Process purchase requisitions by assigning the preferred source. Use transaction ME57 and

ovide the purchase requisition created as input. The purchase requisition will show the selected vendor

nd the MPN (Figure 15). 

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Figure 15 Requisition displaying the vendor, manufacturer, and MPN

ep 5. Convert the purchase requisition to a purchase order .The source has been assigned to the

urchase requisition. Use transaction ME57 and click the List Assignments tab. A pop-up screen will

ppear. Select Process Assignments and press Enter to create a purchase order (Figure 16).

Figure 16 Purchase order created successfully for the MPN

any of the supply sources are blocked on the QIR and the business user attempts to create a purchase

der the system sends an error message (Figure 17). 

Figure 17 Quality information record (QIR) is blocked and purchase order cannot be created

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ep 6. Perform a goods receipt (transaction MIGO) against the purchase order. The order quantity, plant,

orage location are defaulted from the purchase order and the goods receipt is posted to Quality

spection automatically (Figure 18).

Figure 18  Goods receipt performed against the MPN and is stamped on the inspection lot

ep 7. Upon goods receipt an inspection lot is created automatically with the manufacturing part number

igure 19).

Figure 19Inspection lot with MPN

ep 8. Record usage decision for the inspection lot. The usage decision for an inspection lot confirms

at an inspection has been completed. A usage decision of Accepted or Rejected can be manually

corded indicating whether the lot can be used. Figure 20 shows that the inspection lot is approved for

age (Usage decision).

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Figure 20 Usage decision Accepted is manually recorded for the inspection lot

ep 9. Finally upon receipt of invoice from the vendor, the user manually enters the invoice into the

stem (Figure 21).

Figure 21 Invoice posted

uresh Veeraraghavan is a Manager with Capgemini, a leading management and IT consulting firm. He

orks in the Technology service group. He has 14 years of experience delivering SAP implementations in

rious capacities. Prior to joining Capgemini, he worked with Hewlett-Packard as a supply chain

chitect, managing and implementing SAP supply chain projects on a $26 billion platform. His expertise

in implementing best practices in supply chain management, specifically procure-to-pay and order-to-

sh. He is a certified project management professional (PMP) and CPIM certified. You may contact

uresh via email at editor@SCMexpertOnline.com.

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