CASE STUDY

Materials Management (MM)

This case study explains an integrated materials management process in
detail. This promotes a thorough understanding of each process step and
the underlying SAP functions.

Product MOTIVATION PREREQUISITES

S/4HANA 2020 In the exercises for Materials Before you process the case study,
Global Bike Management, a procurement you should familiarize yourself with
process was tracked with master the navigation in the SAP system.
Fiori 3.0 and transaction data that had
already been created. To successfully perform this MM
Level case study, it is not necessary to
This case study explains and have completed all MM exercises.
Bachelor's degree
executes a complete material However, it is recommended.
Masters
procurement process from the
Beginner
creation of master data, through NOTES
purchasing to payment for the
Focus This case study uses the model
delivered goods.
company Global Bike, which was
Materials Management
developed exclusively for SAP UA
Curricula.
Authors
Bret Wagner
Stefan Weidner

Version
4.1

Last Change
June 2022

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Process Overview

Learning objective Understand and execute an integrated procurement Time 170 min
process.
Scenario To process a complete procurement process, you will assume
various roles within Global Bike, for example: Purchaser, Warehouse
Worker, Accounting Clerk. In general, you will work in the Materials
Management (MM) and Financial Accounting (FI) departments.
Employees involved Joyce Hausman (Contract Manager)
Sandeep Das (Warehouse Supervisor)
Sergey Petrov (Warehouse Employee)
Wilton Saban (Inventory Supervisor)
Alberto Conti (Inventory Assistant)
Aura Maxwell (Purchasing Agent 2)
Tatiana Karsova (Goods Receipt Clerk)
Silvia Cassano (AP Accountant)
Shuyuan Chen (Head of Accounting)

Before you start the procurement process, you must create a new supplier (Mid-West Supply
from Lincoln). You then create the new master record for a trading good (chain closing) in the
system. After the stock is checked (empty), you initiate the procurement by creating a purchase
requisition. You then generate a request for quotation and maintain the quotations for three
different vendors (including your new vendor). After evaluating and accepting the bid from
Mid-West Supply, you create a purchase order with reference to the original purchase quotation.
You will then post the goods receipt document and confirm the physical receipt into warehouse
stock. After creating two partial invoices, you will post the payment to the supplier and finally
check all involved G/L accounts in financial accounting. The following graphic shows the entire
process.

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Table of Contents
Process Overview ................................................................................................................. 2
Step 1: Create Vendor .......................................................................................................... 4
Step 2: Create Material ......................................................................................................... 8
Step 3: Change Material ..................................................................................................... 13
Step 4: Display Stock ......................................................................................................... 15
Step 5: Create Purchase Requisition .................................................................................. 17
Step 6: Manage Stock......................................................................................................... 20
Step 7: Create RFQ ............................................................................................................ 22
Step 8: Create Quotation from Vendor .............................................................................. 25
Step 9: Price Based Bid Evaluation.................................................................................... 28
Step 10: Create Purchase Order Referencing an RFQ ....................................................... 30
Step 11: Display Purchase Order ....................................................................................... 34
Step 12: Post Goods Receipt for Purchase Order ............................................................... 36
Step 13: Check Received Goods ........................................................................................ 40
Step 14: Check Physical Goods Receipt ............................................................................ 43
Step 15: Create and Post the First Supplier Invoice ........................................................... 46
Step 16: Display Purchase Order History .......................................................................... 49
Step 17: Display Document Flow ...................................................................................... 52
Step 18: Post Goods Receipt for Purchase Order ............................................................... 55
Step 19: Check Physical Goods Receipt ............................................................................ 57
Step 20: Create and Post the Second Supplier Invoice ...................................................... 59
Step 21: Post Outgoing Payment ........................................................................................ 62
Step 22: Display Vendor Balance ...................................................................................... 64
Step 23: Display Purchase Order History .......................................................................... 66
Step 24: Display Balance List and Line Item List ............................................................. 69
MM Challenge.................................................................................................................... 71

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Step 1: Create Vendor

Task Create a new supplier. Time 20 min

Description Use the SAP Fiori launchpad to create a new supplier (Mid-
West Supply).
Name (position) Joyce Hausman (Contract Manager)

Suppliers are used in both financials and procurement. The master record of a Vendor Master
vendor includes 3 categories – General Data, Finance, and Procurement.
Vendors can be created centrally or with shared responsibilities. During
central creation, all views are generated in one step and by one person. In the
case of shared responsibility, finance and procurement create the views that
are relevant for them. In this case study, the vendor is created centrally. As a
result, the vendor master record contains all the information required to
perform business transactions.

To create a new supplier, go to the Materials Management space. In the Start

Contract Manager section, you can use the Manage Business Partner Master
Data app.

The following screen appears:

On the Manage Business Partners screen, choose and Organization. Organization

In the Create Organization popup window, leave the Business Partner field
blank. The system will generate a unique number later. In the BP Role field,
click and in the Select: BP Role window, select FI Vendor (FLVN00). FLVN00

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For the Organization Title field, select Company and enter Mid-West Supply Company
Mid-West Supply ###
### as the Name 1. Compare your entries with the following screenshot.

Click . In the Business Partner view, in the Basic Data area, enter your ###

three-digit number (###) as Search Term 1.

335 W Industrial Lake
Go to the Address area and in the Street field, enter 335 W Industrial Lake Dr
68528 Lincoln
Dr, for Postal Code 68528, for City, enter Lincoln, for Country US and Region US
NE. Under Standard Communication, select English (EN) as the language. NE
English
Compare your entries with the following screenshot.

Go to the Identification tab and click in the Tax Numbers section. In

US1
the line that appears, enter US1 as the Tax Category and 12-3456### as the 12-3456###
Tax Number – replace ### with your number.

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Now go back to the Roles area and click . Choose Vendor (FLVN01) FLVN01
as the Business Partner Role.

Now click in the row of the newly created business partner role.

You can now maintain company code-specific data for your business partner
in the role of the vendor. Go to the Company Codes area and click .

On the New Company Code screen, enter US00 in the Company Code field. US00
Select the value in the selection help that appears automatically. Confirm with
Enter.

Switch to the Finance tab and enter 3300000 (Trade payables) for the 3300000
0001
Reconciliation Account. In the Payment Data section, enter 0001 (Payable Check Duplicate Invoice
immediately Due net) as the Payment Terms and select Check Double
Invoice. Compare your entries with the following screenshot.

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Now switch to the Correspondence area. Enter your user (LEARN-###) as Your User

the Clerk ID at Supplier. Now click in the lower screen area.

Back on the New Business Partner screen, go to the Purchasing Organizations

area to enhance your Mid-West Supply business partner with purchasing-
specific data.

Click in the Purchasing Organization window. In the Purchasing

Organization field, enter US00.

On the Purchasing Organizations tab, enter USD as the Order Currency and USD
Payable immediately
use the F4 help to search for the Payment Terms Payable immediately Due Due net (0001)
net (0001).

Navigate to the Partner Functions tab. Click on and enter the partner VN
function VN for vendor and press Enter.

Click to transfer your purchasing-specific data for your business

partner. Then click and then . The system automatically assigns
a unique number to your supplier.

Click on the home icon to go to the Fiori Launchpad Overview.

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Step 2: Create Material

Task Create the material master record for a trading good. Time 20 min
Description Use the SAP Fiori launchpad to create the wholesale chain lock
master data.
Name (position) Sandeep Die (Warehouse Supervisor)

To create materials, go to the Materials Management space. In the Warehouse Start

Supervisor section, you can use the Manage Product Master Data app.

On the Manage Product Master Data screen, click .

In the Create Master Data Record dialog box that appears, enter CHLK1### CHLK1###
HAWA
as the Product Number and HAWA (Trading Goods) as the Product Type. UTIL
Enter EA (Each) as the base unit of measure for the Product Group UTIL EA
(Utilities).

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Press . On the General Information tab page in the Basic Data section, enter Accessories (AS)
Accessories (AS) for the Division.

In the Descriptions section, click . In the automatically added line, enter

Chain Lock ###
the Product Chain Lock ### for language EN (English). Repeat this step and Kettenschloss ###
this time for language DE (German), enter Kettenschloss ### as the Product.
For both, replace ### with your number. Confirm your entries with Enter.

Scroll down to the Units of Measure section. At the end of the line in which
the unit of measure EA is already entered, click .

On the Unit of Measure screen, on the Dimensions tab page, enter 65.00 for the 65.00
OZ
Gross Weight and OZ (ounce) as the Unit.

Click .

Now go to the Sales area and enter 0001 (On pallets) as the Transportation 0001
Group. Afterwards, navigate to the Distribution Chains area and choose
.

On the Distribution Chain screen, enter Sales Organization UE00 (US East), UE00
WH
Distribution Channel WH (Wholesale), and Delivery Plant MI00 (DC MI00
Miami).

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In the Grouping Terms area, choose 0001 (Make-to-order) for the Item 0001
Category Group. Choose Enter.

Go to the Sales Tax area and choose Tax Classification 0 (Exempt) for all three 0 (Exempt)
tax categories.

Click .

Back on the Product screen, navigate to the Plants area and click . On
MI00
the Plant screen, in the General Data section, enter MI00 (DC Miami) for Hand lift
Plant and Hand lift for Loading Group.

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Now go to the Purchasing area and enter N00 (North America) as the N00
Purchasing Group.

Go to the MRP Data area and enter the MRP Type PD (MRP), the MRP PD
000
Controller 000 (MI MRP Controller), and the Availability Check 02 02
(Individual Requirement).

In the Lot-Size Data section, enter EX (Lot-for-lot order quantity) as the Lot- EX
10
Sizing Procedure and 10 as the Minimum Lot Size.

Note Some values in this view have three decimal places. Therefore, a
minimum lot size of 10 is displayed as 10.000.

In the Procurement section, for Planned Delivery Time, enter 6 (days). 6

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Switch to the Storage Locations tab page and choose .

On the Plant – Storage Location screen, enter TG00 (Trading Goods) for the TG00

Storage Location field. Click .

On the Product screen, please navigate to the Valuation Areas area and click
MI00
. On the Valuation Area screen, enter Valuation Area MI00 and 3100
Valuation Class 3100 (Trading goods).

Go to the Valuation area and enter 33.50 USD as the Inventory Price and ensure
33.50
that Moving Average Price/Periodic Unit Price (V) is selected for Price
Control.

Click and then click . Your material has now been created.

Click on the home icon to go to the Fiori Launchpad Overview.

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Step 3: Change Material

Task Extend a material master record. Time 5 min

Description Extend the distribution chain of the new trading goods (chain
closure) to enable the San Diego plant to maintain another condition.
Name (position) Sergey Petrov (Warehouse Employee)

To create new views for a trading good, please go to the Materials Start
Management space. In the Warehouse Employee section, you can use the
Manage Product Master Data app.

Enter your material number CHLK1### (replace ### with your number) in CHLK1###

the Product field and click .

Click on the line with your material.

On the Product screen, click . Navigate to the Distribution Chains area

and click .

On the Distribution Chain screen, in the General Information section, enter

UW00
Sales Organization UW00 (US West), Distribution Channel WH WH
(Wholesale), and Delivery Plant SD00 (San Diego). SD00

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In the Grouping Terms area, choose 0001 (Make-to-order) for the Item 0001
Category Group.

In the Sales Tax area, ensure that Tax Classification 0 (Exempt) is entered for 0 (Exempt)
all three tax categories.

Click and then click .

Finally, press to get to the Fiori Launchpad Overview.

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Step 4: Display Stock

Task Display the current stock. Time 5 min

Description View the current stock for your chain lock and the demand for
this product. The report should show that there is no provision for this and
therefore no lock is currently available.
Name (position) Wilton Saban (Inventory Supervisor)

The stock is dynamic. As a result, it always changes when the affected material Stock
is used in a transaction.

To display the stock, go to the Materials Management space. In the Inventory Start
Supervisor section, you can use the Stock - Single Material app.

You will be directed to the following screen.

To find the material number of your bike lock, click in the Material field and
then click . In the Material field, enter your number in the format *###. *###
Click to search. Double-click your material CHLK1###. Your stock
should look like this:

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In the DC Miami row, in the Stock History column, click the icon.
The system will now display the stock history of your material CHLK1### in
DC MI00.

Note Since the material has just been created and no stocks have been posted
yet, the stock history in all key figures is 0.

Close the window and click the Home button to return to the SAP Fiori
launchpad.

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Step 5: Create Purchase Requisition

Task Create a purchase requisition. Time 5 min

Description The sales management has informed the purchasing department
that an advertising campaign is starting in 3 months to introduce the new chain
key. Create a demand (purchase requisition) for 200 of your locks so that you
can choose the supplier that best meets your needs from any quotations.
Name (position) Wilton Saban (Inventory Supervisor)

To create a purchase requisition, please go to the Materials Management Start

space. In the Inventory Supervisor section, you can use the Create Purchase
Requisition app.

You should now see the following screen.

Click .

Enter Material CHLK1### (## - replace with your number), press Enter. The CHLK1###
Short Tex and Material Group will be added automatically.
32.00 USD
Enter 32.00 USD as the Valuation Price, 1 as the Price Unit, and 200 as the 1
200
Quantity Requested. For the Delivery Date, you choose today in 3 months. Today in 3 months

Note The requested quantity is displayed with three decimal places. Therefore,
your 200 is displayed as 200.000.

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At the very end, enter the following message under the Notes heading and on
the Item text tab page:
“Global Bike formally requests quotations for the following material.
Quotations will be accepted until [01. day of next month].“

Click . In the upper right corner, you can see the item in the
shopping cart.

Click to view your requisition.

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In the Items area, click on the line of the chain lock to add some details.

In the Item Details view, enter N00 as the Purchasing Group, US00 as the N00
US00
Purchasing Organization, US00 as the Company Code, and MI00 as the US00
Plant. MI00

Click . Afterwards, click and then choose to confirm the

request. The system creates a separate document number.

Close the notification and then click to go to the SAP Fiori launchpad.

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Step 6: Manage Stock

Task Manage the stock. Time 5 min

Description Display the stock/requirements list of your existing chain key
and check which requirements exist for this product.
Name (position) Alberto Conti (Inventory Assistant)

Please go to the Materials Management space. In the Inventory Assistant Start

section, you can use the Stock (Single Material) app to display the
stock/requirements list.

On the Stock – Single Material screen, in the Material field, enter your chain
CHLK1###
lock CHLK1###. Your warehouse/demand list should look similar to the
screenshot below.

In the DC Miami row, in the Stock History column, click the icon .

The system will now display the stock history of your material CHLK1### in
DC MI00.

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Note As you can see, the creation of the purchase requisition has not
influenced the stock development.

Click to go to the SAP Fiori launchpad

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Step 7: Create RFQ

Task Create a request for quotation for your purchase requisition. Time 5 min
Description Create one request for each supplier. This is used to collect all
relevant information (such as pricing, delivery, and so on) that is needed to
select the supplier that best meets your requirements.
Name (position) Aura Maxwell (Purchasing Agent 2)

To create a request for quotation for your purchase requisition, go to the Start
Materials Management space. In the Purchasing Agent section, you can use
the Manage Purchase Requisitions app

In the Search field enter you material CHLK1### and click . CHLK1###

Select the row with your Purchase Requisition and click .

In the Manage Purchase Requisitions window enter Request for Quote as Request for Quote
RFQ1###
RFQ Type, RFQ1### as RFQ Description, one month from today as the One month from today
Quotation Deadline, US00 for the Purchasing Organization and Company US00
Code.

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In the Bidders area click on to add a new bidder.

Search for your supplier Mid-West Supply ###. Select the entry with your Mid-West Supply ###

supplier and click to add them as bidder.

Repeat this procedure to add the suppliers Dallas Bike Basics and Spy Gear Dallas Bike Basic
Spy Gear
as bidders.

Note You recognize your supplier by the last three digits of the supplier
number. For example, supplier number 103000 represents supplier Dallas
Bike Basics for user LEARN-000.

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Note that in the Items section your purchase requisition was added.

Click and confirm the pop up with .

You will get a success message.

Close the pop up and click to go to the SAP Fiori launchpad.

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Step 8: Create Quotation from Vendor

Task Maintain the quotation from a supplier. Time 10 min

Description After we receiving responses to our purchase requisition from
our suppliers, it is necessary to maintain the respective information in our
procurement system in order to create comparability with which we can
support the choice of supplier.
Name (position) Alberto Conti (Inventory Assistant)

Go to the Materials Management space. In the Inventory Assistant section, you Start
can use the Manage RFQs app to create a request for quotation for your
purchase requisition. If the app is missing in this section, please search it with
the help of the search bar in the upper screen area.

In the Search field enter RFQ1### and click . RFQ1###

Click on the row with your Request for Quote. Go to the Bidder area. Select
your bidder Mid-West Supply ### and click to create a
quotation.

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In the Supplier Quotation window enter three weeks from today as Quotation Three weeks from today
Submission Date.

Note The submission date must not be after the end of the bid period. You can
find the quotation deadline unter general Information.

In the Items are enter 32.00 USD as Net Order Price. 32.00

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Click to create the Quotation. Click to submit the Quotation. If

you don't see the Submit button, enlarge your browser window.

Click to return to the Request for Quotation window. The quotation from
your supplier Mid-West Supply ### can now be found in the Quotations
area.

Repeat this process for the other two bidders. Enter the following prices:
Dallas Bike Basics 36.50 USD
Dallas Bike Basics
Spy Gear 35.00 USD 36.50
Spy Gear
35.00
Make sure you save both requests and take note of the success messages.

Click to go to the SAP Fiori launchpad. Confirm any notes by choosing

OK.

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Step 9: Price Based Bid Evaluation

Task Evaluate the quotes based on the price. Reject two of the three offers. Time 5 min
Description Generate a quotation price comparison list from the quotations
from the individual vendors. The quotation price comparison list sorts the
quotations from lowest to highest.
The successful vendor (Mid-West Supply) was selected using the criterion of
the most favorable quotation. It is now necessary to inform the subordinate
providers of the rejection of their offers.
Name (position) Wilton Saban (Inventory Supervisor)

Go to the Materials Management space. In the Inventory Assistant section, you Start
can use the Compare Supplier Quotations app to reject a quotation. If the app is
missing in this section, please search it with the help of the search bar in the
upper screen area.

Search for your Request for Quotation by using the F4 help. Enter the RFQ1### RFQ1###

as RFQ Description and click .

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Select your RFQ.

Compare the quotes and select the best one, in this case the quotation from Mid-
West Supply ###. Choose the beste Quote and click .

Note For the best offer the Total Quotation Net Value is highlighted in green.

Reject the other two offers. To do this click on the Supplier Qutation number
and the on Manage Supplier Quotation.

In the Supplier Quotation window click on (top right).

Note If your browser window is to small, the Complete button will be hidden
under .

Click to return to the Compare Supplier Quotations window.

Repeat this procedure to also reject the second quotation.

Click to go to the SAP Fiori launchpad. Confirm any notes by choosing

OK.

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Step 10: Create Purchase Order Referencing an RFQ

Task Create a purchase order with reference to a request for quotation. Time 15 min
Description Create a purchase order that refers to the successful supplier's
quote. The details are then imported into the new purchase order.
Name (position) Aura Maxwell (Purchasing Agent 2)

Go to the Materials Management space. In the Purchasing Agent section, you Start
can use the Manage RFQs app to create a request for quotation for your
purchase requisition. If the app is missing in this section, please search it with
the help of the search bar in the upper screen area.

In the search field enter RFQ1### and click . RFQ1###

Open your RFQ and go to the Process Flow area.

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You see your purchase requisition followed by the associated RFQ and the
three supplier quotations. Two of the three offers have already been rejected,
as indicated by the comment completed.

Click on the Supplier Quotation with the comment and then on

.

To create a purchase order from the quotation click in the Supplier Quotation
window on and then on .

In the Purchase Order go to the Purchase Order Items area you see one entry
with your CHLK1### material.

We want to split the delivery in two partial deliverys. Change the Order 200 100

Quantity from 200 to 100. Select the entry and click .

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In the Purchase Order Item screen go to the Schedule Lines area and change 1 week after 1st delivery
the Delivery Date to one week later.

Click on .

Back in the Purchase Order window click on .

Note A purchase order is a formal request to a vendor to deliver goods or

services according to the conditions of the purchase order. Several objects can
trigger a purchase order (see graphic).

Goods receipt and invoice verification are usually based on the purchase
order.

Click until you have returned to the Request for Quotation screen. Take
another look at the Process Flow. The Quotation is now followed by a
purchase order.

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Click to go to the SAP Fiori launchpad. Confirm any notes by choosing

OK.

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Step 11: Display Purchase Order

Task Display your purchase order. Time 5 min

Description You now want to look in the system at what you have sent to
the vendor.
Name (position) Aura Maxwell (Purchasing Agent 2)

To display the purchase order, please go to the Materials Management space. Start
In the Purchasing Agent section, you can use My Purchasing Document Items
(Professional) app.

The app provides you with an overview of all purchase requisitions, purchase
orders, goods receipts, and supplier invoices. In the Supplier field, enter Mid- Mid-West Supply ###
West Supply ### and choose .

Click . The number you see may be different. You may need to
scroll down to see your supplier and purchase order.

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Click to go to the SAP Fiori launchpad.

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Step 12: Post Goods Receipt for Purchase Order

Task Create a goods receipt posting for your purchase order. Time 5 min
Description You receive the goods that you ordered in the previous step
from Mid-West Supply into your inventory. A goods receipt posting is
created that refers to your purchase order. The stock is increased and a
financial document is created that posts the value of the goods correctly.
Name (position) Tatiana Karsova (Goods Receipt Clerk)

To post the goods receipt, please go to the Materials Management space. In Start
the Goods Receipt Clerk section, you can use the Post Goods Receipt for
Purchasing Document app.

Enter your purchasing document number in the Purchasing Document Your purchase order
number
field. If you want to search for your purchasing document number, use the F4
help. In the search field, enter CHLK1### and then click . CHLK1###

Then select the first of your purchase orders by double-clicking it. You can First of your orders
now see your subdivided purchase order.

Note If goods are delivered for a purchase order, document a goods receipt
with reference to the purchase order. The system checks the purchase order
and copies only the open purchase order items to the goods receipt transaction.

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For goods receipt with reference to a purchase order, the system checks the
following:
 Whether the correct material was delivered.
 Whether the correct quantity was delivered. (If there is no surplus or
underdelivery)
 Whether perishable goods are within their minimum shelf life. (In
this case, the shelf life expiration date check must be activated.)

For Printing, select Individual slip. If it is not filled automatically, select Individual slip
TG00
TG00 (Trading Goods) in the individual items for storage location.

Since you have split your purchase order, you should see two lines with 100
pieces. In this step, we only process the first delivery. Therefore, click on the
first row to check all entries.

Select the Delivery Completed checkbox. X

Check that Tradings Goods is entered as the storage location and change the Trading goods
Quality Inspection
stock type to Quality Inspection.

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Now click .

Note Inventory Management recognizes various stock types that indicate the
usability of the material:
 unrestricted-use stock
 Stock in quality inspection
 blocked stock

For goods receipts, you decide to which stock type a quantity is posted. The
stock type is relevant for determining the available stock in material
requirements planning (MRP) and for withdrawals in inventory management
(see also Availability Check).
You can only post withdrawals for consumption from unrestricted-use stock.
From quality inspection stock and blocked stock, you can only withdraw a
sample, scrap a quantity, or post an inventory difference.

Leave the first line selected. Click Post to post the goods receipt of your
material. You receive the following success message with your material
document number.

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Note When you post a goods receipt into one of the warehouses, the system
generates a material document. This document contains information about the
delivered material and the corresponding quantity. For stock items, the plant
storage location is documented.

Close the message and click to go to the SAP Fiori launchpad.

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Step 13: Check Received Goods

Task Check the quality of the goods. Time 5 min

Description You must ensure that the goods have been delivered in the
required quality. The goods are released for consumption.
Name (position) Sandeep Die (Warehouse Supervisor)

Please go to the Materials Management space. In the Warehouse Supervisor Start

section, you can use the Stock (Single Material) app to perform a quality
inspection of the goods.

If it is not already selected, enter your material CHLK1###. A list is

CHLK1###
displayed. Click your material CHLK1###.

In the previous step, you posted the received goods for quality inspection. Here
you can see the 100 units of quality inspection stock.

You can only remove goods from unrestricted-use stock for consumption.
Therefore, you have to transfer post the goods.

Note In reality, you would check whether the correct goods and quantity were
delivered before posting them to unrestricted-use stock.

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Select the row for storage location Trading Goods in the plant in Miami and
click .

In the Stock in Quality Inspection column, click , next to the 100 units. The
icon under Unrestricted use stock is now clickable. Click .

In the Transfer Stock – In-Plant window, increase the quantity to 100. 100

Click . You receive a success message. The material has been

transferred.

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Close the message and click to go to the SAP Fiori launchpad.

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Step 14: Check Physical Goods Receipt

Task Confirm the physical receipt of the goods. Time 5 min

Description View the inventory of chain locks again. The stock overview
gives you an overview of the stocks of a material across all organizational
levels.
Name (position) Tatiana Karsova (Goods Receipt Clerk)

To check the stock level of a material, go to the Materials Management space. Start
In the Goods Receipt Clerk section, you can use the Manage Stock app.

From the drop down menu, choose the DC Miami (MI00). To find the material MI00
number from your chain lock, click in the Material field and then click the
value help icon .

In the Search field, enter *### (for example, if your number is 002, enter *###
*002).

Click to display the list of materials. Extend the Material Short Text field. CHLK1###

Scroll down until you find your material CHLK1###.

Double click on it. The report shows you the storage level for the DC in Miami.

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You can find out more details about the stock of the chain lock. To do so, click
. This will give you detailed information about the stock
of the chain lock in the different plants.

Click on the icon at the DC Miami (MI00) plant to see detailed information
about the stock of the chain lock in Miami. On the following screen, you can
see a graphical overview.

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Click to go to the SAP Fiori launchpad.

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Step 15: Create and Post the First Supplier Invoice

Task Create a supplier invoice. Time 5 min

Description Create a supplier invoice from Mid-West Supply for 3,200.00
USD for the current purchase order and the received goods. This invoice is
assigned to an existing expense account in the general ledger of your chart of
accounts and saved as a payable to Mid-West Supply. To facilitate data entry
in the general ledger, the invoice is shown below.

Name (position) Silvia Cassano (AP Accountant)

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To create a supplier invoice, please go to the Materials Management space. In Start

the AP Accountant section, you can use the Create Supplier Invoice app.

On the Create Supplier Invoice screen, enter today’s date as the Invoice Date. Today's date
US00
Check your company code US00. Enter the amount of the above invoice
(3,200.00) in the Gross Invoice Amount field. Now enter INVOICE00504- 3,200.00
INVOICE00504-###
### as Reference.

Go to the tab Purchasing Document References.

Now enter (or search for) the number of your purchase order in the
Your purchase order
Purchase Order/Scheduling Agreement field. Then press Enter. The Invoicing number
Party field has now been automatically filled with the number of your vendor.

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For the first invoice item, enter XI as the Tax Code and TX0000000 as the XI
TX0000000
Tax Jurisdiction.

Scroll back to the top of the page. As you can see, the balance is 0.00 USD.

Then press to verify that your postings are correct.

Finally, press . The system will generate a unique supplier invoice

number.

Close the message with No to return to the SAP Fiori launchpad.

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Step 16: Display Purchase Order History

Task Display the purchase order history. Time 5 min

Description Review the status of your order of the chain locks. Due to the
first transaction that was carried out for your purchase order number, the
Purchase Order Processing tab page is now available in the purchase order.
Name (position) Wilton Saban (Inventory Supervisor)

To display the purchase order history, go to the Materials Management space. Start
In the Inventory Supervisor section, you can use My Purchasing Document
Items (Professional) app.

The app provides you with an overview of all purchase requisitions, purchase
orders, goods receipts, and supplier invoices. In the Supplier field, enter your
vendor Mid-West Supply ###. Mid-West Supply ###

Choose and then choose the tab page . You may need to
scroll down to see your supplier and purchase order.

In the Purchase Order Items area, click and select the Delivered Quantity
and Delivered Amount columns in the View Settings dialog box.

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Click . As you can see, the first item of the purchase order has been
delivered for a delivery value of 3,200 USD.

Now choose the tab page . You can see the 100 delivered chain
locks. You see the material document that was created in the system when you
confirmed the goods receipt.

On the Supplier Invoice tab, you can see further activities that have been
carried out with reference to your purchase order. Click .

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The invoice has been created. Click on the invoice line of your chain lock. This
will take you to the financial document that was created when you created the
supplier invoice.

Click to go to the SAP Fiori launchpad.

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Step 17: Display Document Flow

Task Display the document flow. Time 5 min

Description Check the goods receipt document and the document flow of
your material.
Name (position) Wilton Saban (Inventory Supervisor)

To display the history of documents, please go to the Materials Management Start

space. In the Inventory Supervisor section, you can use the Material
Documents Overview app.

The app provides an overview of material documents. You can find your
purchase order by using the assigned number. To do this, enter your material
number CHLK1### in the Material field. If the search fields are not displayed CHLK1###

in your system, first click to expand the search fields.

After entering the search term, click . Then click Settings . In the view Stock Type (Stock
settings, activate the Stock Type (Transfer) column. Confirm with . Transfer)

A new material document is created for each material movement. You see two
material documents with your material CHLK###. One is the document for
the goods receipt into inspection stock. You also see a document that was
generated by the transfer posting of the material to unrestricted-use stock.

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Identify the line with the Stock Type (Transfer): Unrestricted-Use Stock.

Click on this line. You can now see the general information for the document
from the step in which you confirmed the goods receipt.

Click the Process Flow tab. In the process flow, you can see the transfer
posting of the material from stock to quality inspection to unrestricted-use
stock.

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Click to go to the SAP Fiori launchpad.

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Step 18: Post Goods Receipt for Purchase Order

Task Post a Goods Receipt for a Purchase Order. Time 5 min

Description You receive the missing goods that you ordered from Mid-West
Supply into your warehouse. A goods receipt posting is created that refers to
your purchase order. This ensures that you have received the ordered goods
within the expected time and in the required quality. The stock is increased
and a financial document is created that posts the value of the goods
correctly.
Name (position) Tatiana Karsova (Goods Receipt Clerk)

To post the goods receipt, please go to the Materials Management space. In Start
the Goods Receipt Clerk section, you can use Post Goods Receipt for
Purchasing Document app.

The Post Goods Receipt for Purchasing Document window appears.

Choose the F4 help in the Purchasing Document field. 

Enter your number *### and click . Search for your material CHLK1###. *###

You can see that you no longer see two purchase orders but only one open
purchase order for your material.

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Double-click the purchase order. The following screen appears. On the

"Items" tab page, you should see only one row.

Make sure that for Storage Location TG00 (Trading Goods) and for Stock TG00
Unrestricted Use
Type Unrestricted use is selected.

Note In step 12, you first posted the goods in quality inspection and then
inspected them later. In this scenario, you inspect the goods directly at goods
receipt so that you can use them directly.

Click on the item line of your chain lock to check all entries. Select the
Delivery Completed
Delivery Completed checkbox.

Now click . Select the line and click . You receive the following
success message with your material document number.

Close the messafe and click to go to the SAP Fiori launchpad.

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Step 19: Check Physical Goods Receipt

Task Confirm the physical receipt of the goods. Time 5 min

Description View the inventory of chain locks again. The stock overview
gives you an overview of the stocks of a material across all organizational
levels.
Name (position) Tatiana Karsova (Goods Receipt Clerk)

To check the stock level of a material, go to the Materials Management space. Start
In the Goods Receipt Clerk section, you can use the Manage Stock app.

From the drop down menu, choose the Miami plant DC Miami (MI00). To MI00
find the material number from your chain lock, click in the Material field and
then click the value help icon .

In the Search field, enter *### (for example, if your number is 002, enter *###

*002). Click to display the list of materials.

Scroll down until you find your material CHLK1###. Double click on it. CHLK1###

Since in the previous step the goods receipt was posted directly to unrestricted
stock, you can see that the stock in this category has increased from 100 to
200.

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You can find out more details about the stock of the chain lock. To do so, click
. This will give you detailed information about the stock
of the chain lock in the different plants.

Click to display the stock history for plant DC Miami (MI00) graphically.
You can now see a graphical overview.

Since you currently only have unrestricted-use stocks, the key figures are set
to 0.

Close and then click to go to the SAP Fiori launchpad.

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Step 20: Create and Post the Second Supplier Invoice

Task Create a supplier invoice. Time 5 min

Description Create a supplier invoice from Mid-West Supply for USD
3,200.00 for the second partial delivery and the received goods. This invoice
is also assigned to an existing expense account in the general ledger of your
chart of accounts and saved as a payable to Mid-West Supply. Later, a check
is issued for Mid-West Supply. To facilitate data entry in the general ledger,
the invoice is shown below.

CHLK1### Chain Lock

Name (position) Silvia Cassano (AP Accountant)

To create a supplier invoice, please go to the Materials Management space. In Start

the AP Accountant section, you can use the Create Supplier Invoice app.

On the Create Supplier Invoice screen, enter today’s date as the Invoice Date. Today's date
US00
Verify that company code US00 is selected. In the Gross Amount field, enter
the amount of the invoice above (3,200.00). Enter INVOICE00515-### as the 3,200.00
INVOICE00515-###
reference.

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Choose the Purchasing Document References tab.

Now enter (or search for) the number of your purchase order in the
Your purchase order
Purchase Order/Scheduling Agreement field. Then press Enter. The number
Invoicing Party field has now been automatically filled with the number of
your vendor.

For the second item, enter XI as the tax code and TX0000000 as the tax XI
TX0000000
jurisdiction.

In the document header, you can see that the balance is 0.00.

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Then press to verify that your postings are correct.

Finally, press and then No. The system will generate a unique supplier
invoice number.

Click No to go to the SAP Fiori launchpad.

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Step 21: Post Outgoing Payment

Task Post the payments to a supplier. Time 5 min

Description Issue a payment to your supplier Mid-West Supply to pay your
payables. Note that the total amount is for both of your invoices. The created
posting will clear the liability from your bank account.
Name (position) Silvia Cassano (AP Accountant)

To post the payment to a supplier, go to the Materials Management space. In Start

the AP Accountant section, you can use the Post Outgoing Payments app.

On the Post Outgoing Payments screen, choose Global Bike as the company US00
code (US00). For Posting Date and Journal Entry Date enter today’s date, Current Date
INVOICES ###
for Reference INVOICES ###, and the current period. For G/L account, Current Period
1810000
enter 1810000 (Bank 1) and the Amount 6,400.00 USD. 6,400.00 USD

Ensure that the journal entry type KZ (Vendor Payment) is selected. Use the KZ (Vendor Payment)
following screenshot to check your entries.

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Under Open Item Selection, enter your supplier number for Mid-West Supply
Mid-West Supply
as the account (if necessary, use the F4 help).

Click . On the upper right, you can see that the open balance is USD
6,400.00.

On the Open Items tab page, you see the two split deliveries.

Since you want to pay both bills together, choose the button in
both lines. Note that both items have been cleared.

The open balance is now USD 0.00.

Press to post your payments to Mid-West Supply. The system will assign
a unique document number to your supplier payment.

Press Display and click to go to the SAP Fiori launchpad. Confirm any
error messages.

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Step 22: Display Vendor Balance

Task Display the balances of a vendor. Time 5 min

Description View and confirm the activities and related balances related to
your Mid-West Supply vendor. You should see a debit posting and a credit
posting that were generated by the two invoices and the output of a single
payment to settle the payables to Mid-West Supply.
Name (position) Shuyuan Chen (Head of Accounting)

To display the balances of a vendor, please go to the Materials Management Start

space. In the Head of Accounting section, you can use the Display Supplier
Balances app.

Use the F4 help in the Supplier field to find the number of your supplier. In ###

the Search Term field, enter your number ### and press .

Scroll until you find your vendor Mid-West Supply. Select the entry. Mid-West Supply

Confirm with . Back on the Display Supplier Balances screen, choose US00
Current Year
US00 as the company code and the current year as the fiscal year.

Then choose to display the balances. You get a similar overview.

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Click to go to the SAP Fiori launchpad.

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Step 23: Display Purchase Order History

Task Display the purchase order history. Time 5 min

Description Review the status of your order of the chain locks. The Purchase
Order History tab page has been updated as a result of further postings.
Name (position) Wilton Saban (Inventory Supervisor)

To display the purchase order history, go to the Materials Management space. Start
In the Inventory Supervisor section, you can use My Purchasing Document
Items (Professional) app.

The app provides you with an overview of all purchase requisitions, purchase
orders, goods receipts, and supplier invoices.

In the Supplier field, enter the number of your supplier Mid-West Supply ### Mid-West Supply ###

and choose .

Click . You may need to scroll down to see your supplier

and purchase order.

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As you can see, no more open quantities are displayed under Next Delivery
Quantity.

Click . You see the other 100 delivered chain locks. You also
see the material document that was created in the system when you confirmed
the goods receipt.

In the Supplier Invoice Overview, you can see further activities that have been
performed with reference to your purchase order.

Click . Both invoices have been created and have the status
Posted.

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To display more information about the documents, you can click on the
relevant row. This will take you to the financial document that was created
when you created the supplier invoice.

Click to go to the SAP Fiori launchpad.

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Step 24: Display Balance List and Line Item List

Task Display the balance and line item list of the general ledger. Time 5 min
Description Use G/L account numbers to display the activities and related
balances for some accounts in your general ledger.
Name (position) Shuyuan Chen (Head of Accounting)

To display the balance and line item list, please go to the Materials Start
Management space. In the Head of Accounting section, you can use the
Balance Sheet/Income Statement app.

In the Display Financial Statement screen, enter US00 (Global Bike) for US00
0L
Company Code, 0L for Ledger, and G000 for Financial Statement Version. G000
Make sure that the Balance Sheet Type is Normal (Actual - Actual) and End Normal (Actual – Actual)
Current Period/Year
Period is current period/year and Comparison Period is 1/2016. Compare 1/2016
your screen with the following screenshot.

Choose . In the view, you can see all items of the accounts of Global Bike
in the United States.

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Note Since all participants in your course are posting to the same US bank
account, the number you see next to the bank account 1810000 used is
different.

Click to go to the SAP Fiori launchpad.

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MM Challenge

Learning objective Understand and execute a Materials Management Time 80min

process.

Motivation After you have successfully completed the Materials Management case study, you
should be able to solve the following task independently.
Scenario A new chain lock, Chain Lock Security Pro ### (ger.: Kettenschloss Security Pro ###),
is available on the market and we would like to include it in our inventory. The new chain closure
with material number CHSP1### consists of a higher quality steel than the previous chain lock
(CHLK1###), but the old one can still be used as a template because it has the same properties.
The new material is intended for plant MI00, sales organization UE00, and distribution channel
WH. With modern production techniques, the new material CHSP1### is also offered more
cheaply by the suppliers. Global Bike passes the savings on to its customers. Maintain the chain
lock in Sales and Distribution with the price condition 50.00 USD per chain lock. Request offers
for 300 chain locks of security pro with a valuation price of 25.50 USD. Based on your request of
300 pieces, Boomtown Tire & Wheel is offering 26.00 USD per piece and Space Bike Composites
of 25.50 USD per piece. Enter both quotations and accept the best quotation and order the
requested 300 chain locks. Process the inbound delivery and enter the incoming invoice. You
then pay for the delivery.
Note Since this task is based on the Materials Management case study, you can use this as a guide.
However, we recommend that you carry out this continuing task without assistance in order to test
your acquired knowledge.

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