MM Configuration Tips

Material Management – Configuration Tips

Maintain the user default settings when creating Material Master You can define the following defaults for each user with transaction code OMT3U. Through this you can define,

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Default Industry sector (Industry only) Organizational levels (Industry and Retail)

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Views that are preselected in the Select View(s) dialog box (Industry and Retail)

Another method is, Goto your user profile, own data ( SU3), click on [Parameters] tab, place MTP under parameter and your desired industry code, say M (for Mech/engr) in values and save.

Allow Negative stocks Transaction OMJ1 - Allowing Negative Stocks. This can be maintained for three levels.  

First level: Valuation area. Second level: Plant.

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Third level: Storage Locations.

Controlling the Fields in Material Master Define whether a field is hidden or displayed, or whether an entry is mandatory or optional in material master maintenance by assigning the field to a field selection group in OMSR. Each field selection group has a number between 1 and 240. The values of the field selection groups have been preassigned as follows: 001-110 111-120 121-150 151-210 211-240

Material master for industry Reserved for customers (except where the values are already in use) Material master for industry Material master for retail Reserved for customers

Create and maintain field references (OMS9). All the fields in the same fields group will have the same field selection option. (hide, display, required entry, or optional entry) Define or change the field references as required (except for field references with the prefix SAP which must not be changed). New field references must begin with Y or Z.

Changing the Field Selection Options for a Field Selection Group

1. Specify the field selection group . 2. Select the field selection option (hide, display, required entry, or optional entry) for each field reference as required. 3. Save. Creating a Field Reference 1. Choose New entries. 2. Specify a field reference beginning with Y or Z. 3. Select the field selection option for each field selection group as required. 4. Save. Changing a Field Reference 1. Double-click the relevant field reference. 2. Change the field selection option for each field selection group as required. 3. Save. Define industry sectors and industry-sector-specific field selection in OMS3. Define plant-specific field selection and screen selection in OMSA.

Control the Output Format of your Material Numbers In OMSL, you can define the following:    

Input and output length of material numbers : (A material number can have a maximum of 18 characters). Template for displaying or printing material numbers. You indicate with an underscore any position in the material number that you do not want to contain a template character. Form in which material numbers are stored Output with or without leading zeros

The settings are client independent.

Block the material for business process Transaction Code : OMS4  

Purchasing MRP

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Inventory Management " "

"B" = error message "A" = warning = no message

If the material is used, this parameter assignment has the following effect: 

Purchasing : You can perform no further purchasing function for the material; for example, you can enter no further purchase order for the material. In this instance, you are given a corresponding error message.

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MRP : If you plan requirements for the material, you are warned that the material is one to be discontinued.

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Inventory Management : You can continue to withdraw the material from stores; no message is given.

Number Range Intervals for Material Master Transaction Code : MMNR  

Click the button Groups to Maintain the Material Type Grouping. Below are those material type that have no number range groups.

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To assign a group, in the not assigned group, select the Material Type you want to group.

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Then tick the Group you want to assign and click the menu path Edit -> Assign Element Group.

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From the same screen, if you want a new number range intervals, click Group -> Insert Group.

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If you decided to used an external number range, goto transaction OMS2 and tick the field External no. assignment w/o check.

You can assign one or more material types to each group. If you assign just one material type to a group, you can define both an internal and an external number range interval for the material type. If you group together more than one material type, you can define an internal and an external number range interval here too. This allows several material types to have the same number range intervals.

Delete storage location in material master  In MM06 Enter Material number, plant and storage location.  Press enter, and set the cross in front of storage location.  Next, you need to run archiving to get it physically out of the SAP system.

Displaying Material Flag of Deletion To list materials which are flagged for deletion, without any development work.   

Go to MB52 which is basically a stock report. In the "Settings" section, tick "Display Materials flagged for Deletion". It will give you the stocks of materials flagged for deletion.

List of standard Reports in MM

MB51 Material Doc. List MB5L List of Stock Values: Balances MBBS Display valuated special stock MC$G PURCHIS: Material PurchVal Selection MC$I PURCHIS: Material PurchQty Selection MC.1 INVCO: Plant Anal. Selection: Stock MC.2 INVCO: Plant Anal.Selection, Rec/Iss MC.5 INVCO: SLoc Anal. Selection, Stock MC.9 INVCO: Material Anal.Selection,Stock MC.A INVCO: Mat.Anal.Selection, Rec/Iss MC.L INVCO: Mat.Group Analysis Sel. Stock MC48 INVCO: Anal. of Current Stock Values MC50 INVCO: Analysis of Dead Stock MCBA INVCO: Plant Analysis Selection MCBC INVCO: Stor. Loc. Analysis Selection MCBE INVCO: Material Analysis Selection MCBK INVCO: MatGrp Analysis Selection MCBR INVCO: Batch Analysis Selection MCE1 PURCHIS: PurchGrp Analysis Selection MCE3 PURCHIS: Vendor Analysis Selection MCE5 PURCHIS: MatGrp Analysis Selection MCE7 PURCHIS: Material Analysis Selection MCW3 PURCHIS: Evaluate VBD Header MCW4 PURCHIS: Evaluate VBD Item ME2L Purchase Orders by Vendor ME2M Purchase Orders by Material ME2N Purchase Orders by PO Number MIR6 Invoice Overview MMBE Stock Overview

Safety Stock Calculation in SAP In normal materials management there are basically 2 basic inventory management systems, the P system and the Q system. P system is a system wherein replenishment is done keeping the quantity constant. The period becomes the variant. In other words you fix the quantity you want the stock to dip, to trigger a requirement. As soon as the stock level is reached you replenish the stock. During a lean period the

time taken to reach the level will be longer and during an active period the time taken to reach that stock could drop.This normally relates with your consumption based planning. Q system is a system wherein replenishment is done keeping the period constant. The quantity becomes the variant. In other words you will check for the level of stock at fixed time intervals (daily, weekly, monthly etc.) compare it with the requirements on that day and trigger the procurement process for eplenishment. This normally relates with your MRP. Now there are 4 more factors that could affect the idealistic procurement pattern: 1. Ordering Lead-time. 2. Manufacuring Lead-time 3. Transporting Lead-time 4. Stock conversion Lead-time (or Quality Inspection lead time) A delay in any or all of the above can have effect on the entire replenishment process and the stock. A buffer stock must be designed to take into account the above coverage. Again the determination of your safety stock depends on the accuracy of your forecast. Higher your accuracy, lower your safety stock. This relationship between forecast accuracy and service level is denoted by factor R. This also takes into account that the customer demand cannot be always satisfied 100% of the time. Hence what we have is: R = Relationship between forecast accuracy and service level (Service Factor) W = Delivery time (in days) / Forecast Period (in days) MAD = Mean absolute deviation (parameter for forecast accuracy) Now If replenishment lead time is greater than the forecast period by factor W then: Safety Stock = R x Sq.rt. W x MAD Else Safety Stock = R x W x MAD Now in SAP If the material is produced in-house, the delivery time is: opening period + in-house production time + goods receipt processing time. It is expressed in workdays. The forecast period is taken from the material master record and is also expressed in workdays. If the material is procured externally, the delivery time is: Processing time for purchasing + planned delivery time + goods receipt processing time. It is expressed in calendar days. The forecast period is taken from the material master record and is also expressed in calendar days. As a result of this you will have observed now that the safety stock must cover both the unplanned material excess consumption, as well as the additional requirements caused by delayed deliveries. In SAP you can specify a minimum safety stock. If the result of the safety stock calulation by the system is lower than this limit, the safety stock is automatically set to this value. You enter the minimum safety stock in the material master record (MRP 2 screen). Safety Stock: In IMG -> Materials Management -> consumption Based Planning -> Master Data -> Check MRP Types (transaction code OMDQ) you use the indicator Calculate Safety Stock so that system calculates the safety stock automatically. The safety stock can be calculated automatically for materials planned with one of the consumptionbased planning procedures if:

1. The service level has been maintained in the material master record. 2. Historical data exists 3. The forecast has been carried out for the material. Dynamic Safety Stock: If the option Define Range of coverage profiles is chosen in IMG (Tr.Code OM1A) you can determine a safety stock level that takes into account: 1. Requirements. 2. Range of coverage The limiting factors to the above are: 1. Maximum and minimum range of coverage ( defined period , that is month, week or PPC planning calendar) 2. Determination of various periods for the validity of the range of coverage. The system uses the formula: Dynamic safety stock = average daily requirements (ADR) x Range of coverage ADR = Requirements in the specific period / number of days in the total period length (defined period x standard days) Please note here that if you carry out the planning run even in the middle of the month the system will include even the requirements planned at the beginning of the month. Please also note that you can determine the range of coverage for a maximum of 3 periods. 1. Range of Coverage in the First Period 2. Range of Coverage in the second period 3. Range of coverage on the rest of the horizon However you have the option of maintaining different coverage for each of these periods. Based on your customization the system determines the number of days used for calculating your average daily requirement Minimum Stock Level (mSL) = ADR x minimum range of coverage Target Stock Level (Dynamic Safety Stock this is DSL) = ADR x Target range of coverage. Maximum Stock Level (MSL) = ADR x maximum range of coverage. Having confirmed the above, I will now try and explain through an example how the system calculates the Dynamic safety stock: Presume that the system has determined the ADR as 25 Kgs for a material. You have set the following in customizing: Minimum Range of coverage = 2 days Target Range of coverage = 6 days Maximum Range of coverage = 10 days Now the System determines the following;

mSL = 2*25 = 50 KGs DSL = 6*25 = 150 KGs MSL = 10*25 = 250 KGs This is what happens for various levels of stock Case 1: Stock = 45 Kgs System Activity = DSL - stock Procurement Proposal = 105 Kgs Case 2: Stock = 60 Kgs System Activity = DSL - stock Procurement Proposal = 90 Kgs Case 3: Stock = 155 Kgs System Activity = none Procurement Proposal = none Case 4: Stock = 255 Kgs System Activity = System checks whether the procurement proposal is firmed and if yes it displays an exception message. Also note that in the case of Time Phased materials planning The range of coverage is calculated differently.

IMG Change Logs Go to SPRO - then select any configuration tcode then menu-utilities-change log (provided the Change Log Tables is turn on by your Basis team. Usually this is turn off. To turn it on, you can refer to IMG Basis Components - System Administration - Tables Changes Recording). Extend all material to a new plant SAP program - RMDATIND is used to create /update material master record. You use this program to transfer material master records to the R/3 System by direct input online for test purposes. The program reads the sequential file specified in it as a parameter an updates the data in the material master records. Test only small files (of not more than say 10,000 materials) since the memory space required in test mode is much larger than in live mode. Production data is transferred with program RBMVSHOW (transaction BMV0). Delete materials permanently from Material master

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Use transaction MM70 Build variant with selection range of material master records to be selected for deletion and maintain run parameters and Execute Use transaction MM71 Build a second variant Maintain run parameters and execute.

It is also important to remove the records manually from info record, POs, PRs, reservation etc for successful deletion of the material. How to Make Source List as Mandatory for Particular Plant By Transaction Code : OME5 Convert MRP generated 100 PRs into 100 POs automatically By Transaction Code : ME59 Creation and Release the PO with Zero Price Creation and Release the PO with Zero Price – By Untick the Inv-Receipt Indicator under Invoice Tab for Item level and make the Net Price as Zero. Setting Default Values for Purchasing By Transaction Code : OMFI DD02L : ALL SAP TABLE NAMES DD02T : DESCRIPTION OF TABLE NAMES DD03L : FIELDS IN A TABLE. You can access all the transaction codes by using the transaction code 'SDMO'.