KSPICO

SAP MM Training Course

 Learning Objectives
Upon completion of this course you will be able to:

Understand the organizational units in MM.

Understand the master data concept of MM.

Understand the basic procurement processes.

Agenda for SAP MM
Overview
Scope of course

 Organizational Units

 Master Data

 Procurement Business Processes Configuration

Document data
 Inventory Management

 Logistics Invoice Verification

Terminology
 Terminology
Term Description
Business Partner In SAP S/4HANA, the business partner is the master record with which you manage
your vendors/customers. The system offers a single point of entry to create, edit,
and display master data for business partners, customers, and vendors.
Business Partner Role A business partner can have several roles, such as a contract partner (FI-CA), FI
Vendor (FI- AP), FI Customer (FI-AR), Customer (SD), Supplier (MM), prospect
(potential customer), or business partner (general). In general, a Business Partner (BP)
role corresponds to a business context in which a business partner can appear and
provides the application specific data.
In KSPICO, we use business partner role KSPICO Customer for general data and KSPICO
Customer (Fin.Acc) for company code specific (= Accounts Receivable specific) data for
a business partner.
Business The Business partner category is the term used to classify a business partner as
Partner Category a natural person (for example, a private individual), group (for example, community
of heirs), or organization (legal entity or part of a legal entity, such as a department of
a company). The business partner category determines which fields are - in principle
- available for data entry. For example, if you want to create a business partner as
an organization, you are able to enter the legal form in one of the fields.
Organizational units in MM
Organizational Units

Organizational units in the SAP

system represents the structure of a
company. In other words, they
correspond to the legal and/or
organizational units of an enterprise.
SAP provides organizational units for
all areas of your company (such as
accounting, purchasing, production,
and warehousing).
Organizational Units
Company Code is the smallest organizational unit in external KSPICO code: 2110
accounting for which a complete, self-contained bookkeeping
system can be maintained. It represents also an independent
unit that produces its own financial statements, such as a
company within the corporate group (a client).

The Plant is an organizational unit within logistics that KSPICO code: 2110
subdivides an enterprise from the viewpoints of production,
procurement, plant maintenance, and materials planning.
May represent a variety of entities within a firm.
A plant is the level of material (stock) valuation.

The storage location is an organizational unit that facilitates KSPICO codes:

211A Raw/Packaging WH
the differentiation of stocks of materials within a plant. 211B Finished Prod WH
Inventory management on a quantity basis is carried out in 211C Eng Spares
the plant at the storage location level. The physical inventory 211E QC Stores​
211F Damage/Reject/WO
is also carried out at this level.
211L External Storage
211M Consumables
211S SemiFinish no WM
Organizational Units
Purchasing organization is an organizational unit within KSPICO code: 2110
logistics that subdivides the enterprise according to the
purchasing requirements. A purchasing organization
procures materials or services, negotiates conditions of
purchase with vendors, and assumes responsibility for
these transactions.

Purchasing Group is a key for a buyer or group of buyers KSPICO codes:

responsible for certain purchasing activities. The 001 Direct (Stock)
purchasing group is: 002 InDirect (Stock+Service)
1) Internally responsible for the procurement of a material 003 InDirect (Non-Stock)
005 Medical Consumables/Bulk
or a class of materials.
2) The principal channel for a company's dealings with its
vendors.
Organizational Structure
Operating Concern
WAZG

Company Controlling Area

2110 WAZG
Credit Contr. Area
2110

Company Code
2110

Personnel Area
2110
Personnel Subarea
2110
Employee Central Integration

Plant Sales Organization Sales Area

2110 2110

Distribut. Channel Division

Purch. Organization 10 00
2110

Sales Office
210

Sales Group
210

Warehouse Number
211

Storage Location Storage Location Storage Location Storage Location Storage Location Storage Location
211A 211B 211C 211D 211E 211X
Master data in MM
Master Data

Master data comprises data records

that are stored in the database for a
long period of time.

These data records are stored

centrally and are used and processed
on a cross-application basis. This
avoids the multiple storage
(redundancy) of data.

 The business partner master data (supplier), the material

master data, and the purchasing info record belong to the
most important master data in the procurement process.
Vendor Master
 The master data of suppliers and customers is managed in SAP S/4HANA by using business partner
(BP) master data. By using this approach, it is possible to centrally maintain the master data for
suppliers and customers.

• Person (for example, a private individual or an employee)

• Group (for example, community of heirs)
• Organization (for example company or a department of a company)
 Vendor Master
 A business partner role corresponds to a business context in which a business partner can appear. In
most cases, a business partner in procurement has 3 different roles : Business Partner (General Data)
– Supplier (Purchasing Data) and FI Vendor (Accounting Data).

Maintained at the Maintained at the

Purchasing org level. it company code level. it
includes data such as the includes data such as
currency, Incoterms, reconciliation account,
partner roles… payment terms…

includes data such as

the vendor’s address,
control data, contact
persons…
Vendor Master
SAPGUI Transaction: BP

FIORI tile: Maintain Business

Partner
Material Master
 The material master record is a company’s central source of material-specific data. It is used in all
areas of logistics. The integration of all material data in a single database object eliminates the
problem of data redundancy. All areas, such as purchasing, inventory management, materials
planning, and invoice verification, can jointly use the stored data.
Material Master: material type
When creating a new material master record, you must
choose a material type and an industry sector to which to
assign the material. Materials with the same properties are
assigned to the same material type (Raw Materials –
Finished Product…). Material type controls Which
procurement type is allowed for a material (that is, whether
the material is produced in-house, procured externally, or
both), number range an many other.
A material group is a way to classify and organize materials
beyond the material type.
 KSPICO material types and number
ranges
Material types agreed in the BPD are copies of the SAP Standard :
SAP Mapping to KSPICO current Oracle codes
Material Type Description Number from Number to Item Catg. Item Category description Starting digits:
ZASE
ZDIE
Assets
Services
1100000000
1200000000
1199999999
1299999999
(none)
SR
(none)
SERVICES
• 1:
ZERS Spare Parts 2100000000 2199999999 SP
ABTFP
SPARE PARTS
ABBOTT FINISHED PRODUCT
• 11: Assets
ZFER Fnished Products 3000000000 3999999999
FP FINISHED PRODUCT • 12: Services
BC
BG
BULK CAPSULES
BULK GRANULES
• 13: MPN materials
BK
BT
BULK MATERIAL
BULK TABLETS
• 2:
BTc BULK TABLETS COATED • 21: Spare parts
ZHAL Semi Finished Goods 4000000000 4999999999
MC
MCSF
MEDICAL CONSUMABLES
MEDICAL CONSUMABLES SEMI FINISHED
• 22: Consumables
SFB
SFBT
SEMI FINISHED BLISTER
SEMI FINISHED BOTTLE
• 3: Finished products
SF SEMI FINISHED MATERIAL • 4: Semi finished products
SFS
SFT
SEMI FINISHED SACHET
SEMI FINISHED TUBES
• 5: Trading goods
ZHAW Trading Goods 5000000000 5999999999
GMDS
TR
Al-Ghanim medical Supplies
TRADING
• 6: Non-stock materials
ZHER Manufacturer Part Nr 1300000000 1399999999 (none) (none) • 7: Raw materials
ZHIB Operating Supplies 2200000000 2299999999 CS
CS
CONSUMMABLES
CONSUMMABLES
• 8: Packing material
ZNLA Non-stock Material 6000000000 6999999999
OR
ABTPM
OTHERS
ABBOTT PACKING MATERIAL
• 9: not used (so let use for possible
ZROH Raw Material 7000000000 7999999999 PM PACKING MATERIAL applications for later)
RM RAW MATERIAL
ZUNB Semi Finished Goods 4000000000 4999999999 ABTSF ABOTT SEMI FINISHED MATERIAL
ZVER Packaging Material 8000000000 8999999999 PM PACKING MATERIAL
Info Record
 The purchasing info record is part of the master data of the purchasing department. It contains
information on a specific material (or material group) and a vendor supplying the material (or
products from the material group).

Organizational Level of an Info record :

Info Record
 When you create a purchase order, the system searches for an info record for the vendor/material
combination at purchasing organization level/plant level. If a purchasing info record exists, then valid
conditions have priority during price determination.

Note : If an info record does not contain

any conditions, or only contains invalid
conditions, the system reads the number
of the last purchasing document in the info
record, and then proposes the price from
this document.
Source List
The source list is used in the
administration of sources of
supply. It specifies the allowed
(and disallowed) sources of a
material for a certain plant
within a predefined period. Each
source is defined by means of a
source list record.
Business
Processes in MM
 Procurement Business Processes
Purchasing documents in SAP :

 Purchase Requisition : is an internal document that is used to ask your Purchasing department to procure a particular
quantity of a material or a service for a particular date.
 Request for Quotation : Request for quotation is a form of invitation that is sent to the vendors to submit a quotation
indicating their pricing and terms and conditions. It contains details about goods or services, quantity, date of delivery,
and date of bid on which it is to be submitted.
 Purchase Order : is an external document to be sent to the supplier, This document indicates a material or group of
materials to be purchased. Also, it includes other details like supplier number, quantity, net price, delivery date and so on.
 Purchasing Contract : An outline agreement is a longer-term arrangement with a supplier for the supply of materials or
provision of services, based on predefined terms and conditions. This arrangement is valid for a certain period and for a
predetermined total purchase quantity or value.

Purchasing master data in SAP:

 Purchasing Info Record : A purchasing info record is a repository of information for purchasing. It contains data on a
certain material and a supplier of that material. The information may include the current supplier price, the supplier’s
planned delivery time, and the name by which the supplier refers to the material.
 The Source List is used in the administration of sources of supply. It specifies the allowed (and
disallowed) sources of a material for a certain plant within a predefined period. Each source is
defined by means of a source list record.
 Procurement Business Processes
 The external procurement of materials is based on a cycle of general activities.

1. A purchase requisition can be created to

8. Run the payment program to pay inform the purchasing department about
vendor liabilities. material requirements (can be created
manually or automatically from MRP),

7. Enter invoices in the system by 2. The buyer can refer to an existing

referring to purchase order to check source of supply (Info record –
the calculations and accuracy of the Outline agreement…), Otherwise he
invoice. can create Request for quotations.

6. Receive the stock by referring to 3. To find out which supplier has the best
the Purchase order number prices you can carry out price comparisons
between various supply sources or
quotations.

5. You can determine whether a 4. A Purchase order can be created after

confirmation or invoice has already been selecting the best source of supply.
received for a purchase order item.
Procurement Business Processes

Procurement
Processes

Direct Material is the Indirect material refers to the

process of procuring acquisition of goods and
materials that are directly services that are not directly
used for production related to the production or
purposes. manufacturing process.
The
recommend
ed
procuremen
t business
process in
SAP at
KSPICO
 Knowledge Check 1
• Which
Question
The general data section of the Business Partner master record must be created separately for every
company code that does business with that customer.

Select the correct answer.

1. True
2. False
 Knowledge Check 1 - Answer
• Accounts Receivable
Question
The general data section of the Business Partner master record must be created separately for every
company code that does business with that customer.

Select the correct answer.

1. True
2. False
Course summary
 Summary
Congratulations! Now you've completed the SD module, you should be able to:

Understand the organizational units in MM.

Understand the master data concept of MM.

Understand the basic procurement processes.