MM Inventory Management Configuration

SAP MM/WM Configuration Pack Inventory Management Published by Team of SAP Consultants at SAPTOPJOBS Visit us at www.sap-topjobs.com

Copyright 2006-07@SAPTOPJOBS

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form, or by any means electronic or mechanical including photocopying, recording or any information storage and retrieval system without permission in writing from SAPTOPJOBS

INDEX 1. Plant Parameters ------------------------------------------------------------------------- 3 2. Define Attributes of System Messages-------------------------------------------- 8 3. Number Assignment for accounting documents---------------------------- 12 4. Define number assignment for material and PI documents ------------ 23 5. Define Number Assignment for Reservations -------------------------------- 25 6. Field selection for Goods movements ------------------------------------------- 29 7. Settings for Goods Movements – movement type--------------------------- 34 8. Field Selection for MIGO ------------------------------------------------------------ 39 9. Create Storage Location Automatically----------------------------------------- 43 10. Define screen Layout -------------------------------------------------------------- 46 11. Setup Dynamic Availability Check-------------------------------------------- 51 12. Allow Negative Stock --------------------------------------------------------------- 59 13. Create Purchase Order automatically --------------------------------------- 62 14. Goods Receipt related settings ------------------------------------------------- 63 15. Set Manual Account Assignment---------------------------------------------- 64 16. Set Delivery Completed Indicator --------------------------------------------- 66 17. Set Missing Parts Check---------------------------------------------------------- 68 18. GR Reversal in spite of completed IR ---------------------------------------- 73 19. Set Expiration Check -------------------------------------------------------------- 75 20. Price Difference for Subcontract orders GR ------------------------------- 79 21. Define Default values for Reservation --------------------------------------- 81 22. Record Reason for Goods Movements --------------------------------------- 84 23. Copy, change Movement Types ------------------------------------------------ 88 24. Output Determination------------------------------------------------------------ 100 24.1 Maintain output type ------------------------------------------------------- 101 24.2 Maintain output determination procedure-------------------------- 107 24.3 Maintain Condition Record ----------------------------------------------- 109 24.4 Assign Forms and Programs --------------------------------------------- 115 25. Printer Determination by Plant/Storage Location---------------------- 118 26. Stock Determination -------------------------------------------------------------- 121 26.1 Define Strategies for Stock Determination -------------------------- 122 26.2 Assign Stock determination rule in Applications ----------------- 128 27. Reporting – Define Stock List Display -------------------------------------- 132 28. Price Control in material Type------------------------------------------------- 137 29. Split Valuation – Activate Split Valuation --------------------------------- 139 30. Configure Split Valuation ------------------------------------------------------- 141 31. Define Valuation Classes-------------------------------------------------------- 152 32. Define Account Grouping for Movement type---------------------------- 156 33. Configure Automatic Posting -------------------------------------------------- 159

1. Plant Parameters BACKGROUND

This configuration setting enables us to define the plant parameters settings related to inventory management. This settings governs the following • • • •

Goods Movement Physical Inventory Negative stock Reservations

INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Plant Parameters 1. Click

2. Select IND6 plant by clicking grey box in the left 3. Click

4. Maintain the fields as explained below

Field Name

Field Description and value Tick in this check box will allow the automatic storage location creation during first time material receipt. Tick in this check box will automatically propose the delivery complete during GR for PO provided the delivered quantity falls within the

delivery tolerance. Tick in this check box will check the missing parts list during goods movement transaction. Tick in this check box will send a summarized list of missing part message to the MRP controller. Tick in this check box indicates that the batch where used list is NOT active. Tick in this check box indicates the synchronized posting of where used list processing. Tick in this check box activates the checking of production date during GR. Note:in addition to this, material master level and expiration date check at movement type level must be activated. Key identifying the BOM usage. Key identifying the BOM application. Key identifying the transaction even type which will be used for physical inventory. Tick in this check box indicates that the GR/GI slip number is active. Manual creation of GR/GI slip is possible. Tick in this check box will allow the automatic creation

batch number for account assigned PO items which are handled in batches. Stock type from which the PI samples are to be taken. 1 indicates PI from unrestricted. Possible entries are

Tick in this check box will propose the Unit of entry automatically during PI count document processing. Tick in this check box will determine the batch automatically during PI, otherwise batch has to be entered manually. If this is ticked, system will create a change document when PI document is changed. If this check box is ticked, Goods movements are allowed for the reservation items earlier or later from the required date according to the setting of . Number of days earlier or later goods movements are allowed for a reservation. If the date requid is older than the number of days entered here from the date of requirement, system will automatically set the deletion flat to those reservations. If this check box is ticked,

negative stock will be allowed for vendor consignment goods. If this check box is ticked, negative stock will be allowed for unrestricted stock goods. If this check box is ticked, negative stock will be allowed for material provided to vendor. If this check box is ticked, negative stock will be allowed for consignment stock with customer. If this check box is ticked, negative stock will be allowed for stock of return packaging with customer. If this check box is ticked, negative stock will be allowed for sales order stock. If this check box is ticked, negative stock will be allowed for project stock. 5. Click

after the required setting is done.

Note: - Standard SAP setting must be sufficient. Effect of this configuration Settings maintained here will have a inventory management transactions.

impact

during

2. Define Attributes of System Messages BACKGROUND

This configuration setting enables to define the attributes of system messages. System messages are the communication from system during the performance of transaction about master data or about program functioning. Three types of system messages are • Information • Warning • Error Information messages are just information. It will not expect any response from you and will not stop the transaction. Warning messages will stop at the transaction and expect you to press enter to go ahead to the next step. Error message will not allow you to proceed further. Example: - During Invoice verification, if the invoice quantity is greater than the GR quantity, system will issue a message. This can be set as warning or error message according to the business requirements. Note: - Message attributes of controlled with version and application area. 00 is the standard SAP version and M7 is IM application are. If you want to change the system message attributes, create your own version and change the attribute in it without changing the SAP version 00.

E.g. create your own Version IN. In the user profile enter the parameter id MSV and assign the value IN to it. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Define Attributes of System Messages 1. Click

2. Double click on 3. Select the message line which is to be changed 4. Click 5. Enter any two digit version number. E.g. IN 6. Change the requirement

message

category

according

to

the

7. Click 8. Click 9. Assign the parameter Id MSV to the user profile and assign the value IN to it as explained below. 10.

Use Transaction SU3

11.

Click

12.

Enter SMV in the parameter column

13.

Enter “IN” in the value column

14.

Click

15.

Click

Effect of this configuration System message will behave according to the settings done here. Same message can be made to behave differently to different person through maintaining parameter id and version in the user profile.

3. Number Assignment for accounting documents BACKGROUND This configuration setting enables to define the number range for different tolerance limits for price variance. When material movements transactions are following documents are generated by the system.

performed,

Number range for those documents is to be defined. Note:- Most of the SAP settings must be sufficient to perform the transactions. It is explained here for your understanding. Number ranges are assigned directly in the production system. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Number Assignment → Number Assignment 1. Click

2. Double click

3. Double click on any line item to view the details. E.g. Double click

Note:- Number range for each document type is maintained here. 4. Click

two times

5. Double click 6. Enter company code E.g. 9100

7. click

Note:- Company code number range is maintained here. 8. Click

two times

9. Double click

10. Document type with respect to transaction code is maintained here. 11.

Click

12.

Double click

13. document type with respect to transaction codes is maintained here 14.

Click

15.

Double click

16. Document type with respect to GR/GI automatic transactions is maintained. 17.

Click

18.

Double click

19.

Click

twice to reach main IMG menu

Effect of this configuration Document numbers will be allotted according to the settings defined here.

4. Define number assignment for material and PI

documents BACKGROUND This configuration setting enables to define the number ranges for Material document and physical inventory document. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Number Assignment → Define number assignment for material and PI documents 1. Click

2. Click 3. Click type

to add new number ranges. to assign number range to the document

Note:- Assignment of number range to the not assigned document is same as explained in our other documents. 4. Click

after changes

Effect of this configuration Document numbers will be allotted according to the settings defined here.

5. Define Number Assignment for Reservations BACKGROUND This configuration setting enables to define the number assignment for reservations. Reservation is the indication of requirement for any material on specific date for specific quantity and for specific requirement. Reservations are created automatically and manually. Example 1:When releasing the process order, reservation will be created for its components. Example 2:Manually reservations are created against any future customer requirements. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Number Assignment → Define number assignment for Reservations 1. Click

2. Click

3. Click

to create intervals

4. Click

to add more intervals

5. Click 6. Click 7. Click the reservation

8. Click

to assign the number range to

9. Click Effect of this configuration Number ranges to the reservations will be assigned as per the setting here.

6. Field selection for Goods movements BACKGROUND This configuration setting enables to define the field selection for goods movement for each document type. There is a facility to make certain fields as mandatory, optional or not to display. This configuration setting enables to perform this function. Example:- Let us try to make the field Collective slip as display in the goods issue documents. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Field selection for Goods movements initial/header screens 1. Click

2. Double click on the field name. E.g. 3. Click 4. Click

5. Enter document type in the Content field. E.g WA

6. Click

7. Click Effect of this configuration During the goods issue documents, collective display field will appear as a display.

7. Settings for Goods Movements – movement type BACKGROUND This configuration setting enables to define the field selection for Goods Movement type. Movement type specific field controls can be configured. Let us make Reason for movement as mandatory entry for movement type 311 (transfer from one location to another location). INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Settings for enjoy transactions → Settings for Goods Movements (MIGO) → Field selection per Movement type 1. Click

2. click

3. Enter movement type. E.g. 311 4. Click

5. keep the cursor on the field name column as shown above 6. Press F4 to view the possible entries

7. Note the field name for reason for movement. E.g. GRUND 8. Click 9. Click 10.

Make the entry as shown below

11.

Click

Effect of this configuration Now when performing the movement type 311, reason for movement will be a mandatory entry.

Note:- this setting has impact only with MIGO transaction. It will not have any effect with MB* transaction.

8. Field Selection for MIGO BACKGROUND This configuration setting enables to define the field selection for MIGO transaction. Fields can be made mandatory or hidden from display through this configuration setting. e.g. GR/GI Slip should be made as invisible. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Settings for enjoy transactions → Settings for Goods Movements (MIGO) → Field selection for MIGO 1. Click

2. Click

in the top to go to next page to view the field .

3. Click on the radio button in the Hide column.

4. Click Effect of this configuration When using the MIGO transaction code, GR/GI slip field will not be visible.

Before setting:-

9. Create Storage Location Automatically BACKGROUND This configuration setting enables to define the storage location automatically during the first time GR to that location. When creating the material master, it has to be created for each storage location view. However, through this configuration setting, when the material is received into the new storage location, storage location view will be created automatically and system will not issue any error message. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Goods Issue / Transfer Postings → Create Storage Location Automatically 1. Click

2. Double click 3. Click 4. Enter plant name. E.g. IND6 5. Click 6. Tick the check box

7. Click 8. Click Note: - in addition to this setting, to enable the automatic storage location creation, it must be allowed at movement type also. 9. Double click 10. Tick the check box movement types.

for relevant

11.

Click

12.

Click

Effect of this configuration This setting will enable the automatic storage location creation at plant level.

10.

Define screen Layout

BACKGROUND This configuration setting enables to define the screen layout / field selection for movement types which is not covered by enjoy transaction. Example for all MB transactions, the field selection control is performed here in this settings. Through the field selection, certain fields can be made • Mandatory • Optional • Invisible Note: - movement type like moving sales order stock transaction, in this case, it is not possible to change the sales order field. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Goods Issue / Transfer Postings → Define Screen Layout 1. Click 2. Click

to make it to a change mode

3. Select any movement type by pressing the grey box in the left. E.g. select 201 without any special stock indicator. 4. Click

Note: - Text in blue color indicates that only those select groups are used and in other select groups all fields are not displayed. 5. double click on

to change the field status

6. Change the radio button according to the business requirements. 7. Click

after changes are done.

For our interest, let us display the group which is in grey color.

select

8. Click Effect of this configuration Fields entry requirements during the movement types will be according to the settings done here.

11.

Setup Dynamic Availability Check

BACKGROUND This configuration setting enables to define the Dynamic Availability Check. Availability check is basically carrying out the availability of material to consume as per the checking rule. Checking rule control specifies which receipt elements (purchase order, purchase requisition) and issue elements (production order, planned orders, reservations) are to be considered to calculate the net availability of material. Checking rule control is defined for the combination of availability check and checking rule Availability check is picked up from the material master MRP3 view. E.g. 01, 02 etc.. Checking rule is assigned at transaction code level. E.g. MB1A – 03 checking rule. With the above combination, checking is established. At the movement type level, the type of availability check with message type can be defined. In inventory management components availability check can be performed at two levels. a. During creation of reservation b. During goods movement Note: - following steps are essential to perform

1. material master must contain the checking group in MRP3 view – Master data 2. Checking rule must be assigned to the transaction code -- IMG. 3. Checking type defined at movement type level --IMG INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Goods Issue / Transfer Postings → Setup Dynamic Availability Check 1. Click

2. Double click

3. Select value in Note: - Allowed entries are

4. Click

.

5. Click 6. Double click

column

7. Click

to create new entries.

Note: - It is a simple text entry. To create new entries, enter any two digit in column and enter description in the column. 8. Click 9. Click

10.

double click

11. Double click the row you want to display the details. E.g. Av.01 and ChR 03 row.

Note: - This is the checking control screen. Tick in the check box indicates that element is to be considered during the availability check. More detailed explanation about this is available with PP materials. To create new entries click and maintain the entries as required by the business for the combination of availability check and checking rule and save. 12. click - if no new entry of modification has been done, else click first and then click

13.

Double click

14. Maintain the desire checking rule for the required transaction. 15.

Click

16.

Click

Effect of this configuration Availability check will be performed as per the settings done here during the material movement transactions.

12.

Allow Negative Stock

BACKGROUND This configuration setting enables to define the negative stock at plant and storage location level. Negative material specified received,

stock allowed setting will permit to proceed with issues even if there is no stock available at the storage location. However when the goods are it will be adjusted.

It is mainly used where the goods issues are made prior to the goods receipt due to the business requirements. In the IMG Set negative stock allowed at valuation area level. Set negative stock allowed per plant in the valuation area Set negative stock allowed per storage in the plant In the material master storage view Set the negative stock allowed INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Goods Issue / Transfer Postings → Allow Negative Stocks 1. Click

2. Click the check box in

column

3. Select the valuation area row where the negative stock is allowed. 4. Double click on

5. Tick the check boxes to which the negative stocks are allowed. 6. Double click 7. Tick the check box in storage location.

column at respective

8. Click 9. Click

till the main IMG screen is reached

Effect of this configuration Now the negative stock will be allowed in the plant and storage location as per the setting done here. Below screen shows the setting at material master level

13.

Create Purchase Order automatically

BACKGROUND This configuration setting enables to define the automatic purchase order generation while performing the goods receipt. When doing so, system will refer the purchasing info record price to valuate the goods receipt. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Goods Receipts → Create Purchase Order Automatically 1. Click

2. Tick the check box for movement type 101 if you want 3. Click Effect of this configuration System will create PO automatically during GR.

14.

Goods Receipt related settings

BACKGROUND Configuration menu under Goods Receipt are mostly similar to that of Goods Issue and Transfer posting hence it is not duplicated again. Only the Goods receipt relevant movements and transaction codes are listed here in this configuration menu. However for your clear understanding, given below are the similar configuration processes except the change in movement type and transaction codes.

- -already discussed.

15.

Set Manual Account Assignment

BACKGROUND This configuration setting enables to define the account assignment control in the movement types. In the movement type, assignment of GL account manually can be controlled through this setting. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Goods Receipts → Set Manual Account Assignment 1. Click

2. Select the appropriate entry column. Allowed entries are

in

the

3. Click 4. Click Effect of this configuration During the transaction with the respective movement type, account control field will have the impact as per this configuration.

16.

Set Delivery Completed Indicator

BACKGROUND This configuration setting enables to define delivery completed indicator setting automatically by the system. If the delivered quantity is within the tolerance range of the PO, system will set the delivery indicator automatically. Note: - MIGO transaction has got this indicator at transaction level. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Goods Receipts → Set Delivery Completed Indicator . 1. Click

2. Tick the check box in the required plant. 3. Click

column against

4. Click

Effect of this configuration During GR, system will set the delivery completed indicator automatically if the delivery quantity of PO is within the tolerance limit or the entire PO quantity is delivered.

17.

Set Missing Parts Check

BACKGROUND This configuration setting enables to set the missing parts checking during GR and informing the MRP controller. During GR, system checks whether it is a missing part, and it is so, system will send a mail to the MRP controller. Following are the essential settings: • Missing part checking must be active for a plant • Checking group in the material master • Checking rule at the transaction code level. However it is possible to assign the different checking rule at movement type level. To send the missing parts message • SAP office user must be assigned to the MRP controller • Set up the output determination. Using SE38 transaction, run program RM07NCUS to copy the relevant standard setting to your client. It must be available by default. • Use output type MLFH, medium type 7 and partner function DC. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Goods Receipts → Set Missing Parts Check 1. Click

2. Click 3. Tick the check box in the column to activate missing part check for each material level Note: tick in this check box will activate missing part at document level and plant level during GR.

4. Click 5. Click

6.

, and are similar to the one we have already discussed.

7. Click

8. Maintain the checking rule in the column in addition to the checking rule maintained at transaction code level. Note: - the point 8 setting is optional, where at transaction code level checking rule is mandatory. If no checking is to be done at movement type level, enter ** 9. Click 10.

Click

11.

Click

12. Maintain the MRP controller for the respective plant who has to receive the mail message. 13.

Click

14.

Click

Effect of this configuration System will perform the missing parts checking in the respective plant as per the checking rule defined here during GR.

18.

GR Reversal in spite of completed IR

BACKGROUND This configuration setting enables to define GR reversal setting even after the completion of invoice receipt. With this setting, with reference to the purchase order or a return delivery a reversal can be entered even if the invoicing has been done to the referred PO. If the above setting is not done, first invoice has to be cancelled before the reversal. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Goods Receipts → For GR-Based IV, Reversal of GR Despite Invoice 1. Click

2. Tick the check box to the relevant movement types

3. Click 4. Click Effect of this configuration With this setting, system will allow the reverse the GR or return delivery in spite of complete IR to the PO with out canceling the Invoice.

19.

Set Expiration Check

BACKGROUND This configuration setting enables to define the shelf life expiration date check during goods movements. It is effective only if • Material master contains the minimum shelf life period in the storage 1 view • Shelf Life Expiration date check active at plant level • Shelf life Expiration date check active at movement level Effect of this is, during GR, one must maintain the production date or the expiry date in the GR. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Goods Receipts → Set Expiration Date check 1. Click

2. Click

3. Tick the check box in 4. Click 5. Click 6. Click

to active at plant level

7. Enter the right entry from the allowed entries. Allowed entries are

8. Click 9. Click Effect of this configuration Shelf life expiration date checking will be performed in the plant and in the respective movement as per the setting done here. Below screen shows the material master data where the minimum shelf life is to be maintained.

Minimum remaining days, total shelf life D – for Days

20.

Price Difference for Subcontract orders GR

BACKGROUND This configuration setting enables to activate the price difference account posting for subcontracted items with standard price. If the material is handled with standard price, there I sbound to be a price difference between the standard price calculation and the receipt value. If this setting is activated, the difference will be posted to the price difference account. If this setting is not done, there won’t be any entries posted to the price difference account. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Goods Receipts → Price Difference for Subcontract Order at Goods Receipt 1. Click

2. Tick the check box in the box

column check

3. Click 4. Click Effect of this configuration With this setting, price difference posting will be done for subcontract GR items which are handled in standard price.

21.

Define Default values for Reservation

BACKGROUND This configuration setting enables to define the default settings for reservation. Reservation indicates • When the material is required • How much quantity • Requirement type Through there are many more information can be read from the reservation, above are the essential information. Reservations are created automatically or manually in the SAP system. Default setting for reservation controls • Goods movement against reservation • Deleting the reservation • Storage location stock data for reservation INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Reservation → Define Default Values 1. Click

2. Click Note: - Standard SAP default settings are enough. It is explained here for your understanding. 3. Maintain the field as explained below Field Name Field description and Value Key indicates whether - movement allowed movements are allowed to the reservation in this plant. Days movement Indicates number of days prior to the requirement date, allowed any movement can be performed to this reservation. - Retention period in days Number of days the reservation will be retained for processing. After this stipulated days, it will be automatically marked for deletion. • - Storage location data Storage location data pertains to the reservation is created for reservation automatically in the material

master record. 4. Click 5. Click Effect of this configuration Reservation in a particular plant behaves according to this configuration.

22.

Record Reason for Goods Movements

BACKGROUND This configuration setting enables to define the reason for goods movements. Each material movement type has got the field reason for movement. According to the business requirements, certain movement may require reason and it can be made as mandatory at movement type level. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Movement Types → Record Reason for Goods Movements 1. Click

2. Click

3. Maintain the Field control to the reason field for the respective movement. Allowed entries are

E.g. Let us make it mandatory for movement type 311

4. Click 5. Click 6. Click 7. Click 8. Maintain the field as explained below Field name - movement type

Field description and Value Key identifying the movement type. E.g. enter 311 Key identifying the reason. Enter any (max4 digits) numeric. E.g. 901. Description to the key identifying the reason. E.g. To sample usage.

9. Click 10.

Click

till the main IMG screen is reached.

Effect of this configuration When performing the 311 movement movement entry is mandatory.

type,

reason

for

Reason for movement is mandatory

Press F4 key in the field, following allowed entry is displayed as per this configuration.

23.

Copy, change Movement Types

BACKGROUND This configuration setting enables to define the movement types. Material movement type has got various important control integrated with FI and also few controls with QM module. Very important function of the movement type is to determine the right GL accounts to make accounting entries. Let us try to understand the account determination through the movement type before we look at the configuration.

Movement type contain the value string Transaction key are assigned to the value string, which determines the GL account with valuation class of the material. Mainly the new movement types are created, if it is desired to be posted to a different GL account in discussion with FI. Let us try to understand the settings behind the SAP standard movement types.

INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Movement Types → Copy, Change Movement Types 1. Click

2. Tick the check boxes as shown above. This is to select the movement type to copy, change or display. 3. Click

4. Enter client number and movement type 5. Click Note: - As the standard SAP settings are sufficient to carryout the transaction and different settings are explained in different above topics, it is only displayed here. Important integration points are explained here

6. Double click

Short text for the movement types is maintained in different languages. 7. Double click

8. Double click

9. Double click 10.

Select the row by clicking grey box in the left

11.

Click

Note:- Field selection is possible only from movement type 201 12.

Double click

13.

Select any row by clicking grey box in the left

14.

Click

Integration Point with FI:- (from steps 15 to 16) Note: - Value string contains the transaction key 15. Click next to the value string to display the transaction key attached to this value string.

16.

Click

Integration Point with QM:- (from step 17) 17. Inspection lot origin 01 will pick up the right inspection type from the material master. Note: - QM view of material master contains the inspection type which is assigned to the inspection lot origin. 18.

Double click

19.

Select the row as shown above to view the details

20.

Click

Note: - Account modifier is the key to determine the GL account along with the transaction even key. 21.

Click

22.

Double click

Note: - This indicates the reversal movement type 23.

Double click

24.

double click

Integration with QM: From update control, each movement type determines inspection lot origin. If the inspection type (of respective lot origin. For 101 it is 01 inspection type) is activated in the material master, inspection lot is created. Though with the above two set up, If this check box is ticked (indicating NO QM for this specific movement), NO inspection lot is created. 25.

Double click

26.

Click

27.

Click

till main IMG screen is reached

Effect of this configuration Movement type will maintained here.

perform

according

to

the

settings

24.

Output Determination

BACKGROUND This configuration setting enables to define the output determination. Output determination is the process of identifying the right output medium type (printout, mail, fax etc) to the right document. In order to achieve this, condition types are used to link between the output type and the right document. Note: - SAP standard settings are sufficient to work with the output determination. Below explained are the brief tips to do with the output determination. Let us display the standard output determination configurations. When you create new client, follow the steps a. Run report RM07NCUS which will copy the entire standard setting from SAP 000 client to your client. b. Medium types with mail, maintain condition records c. Maintain printer determination for condition type for the combination of plant and storage location. d. Few frequently used standard condition types are WA01 – GI WE01 – GR MLFH - missing parts mailing on GR Now let us look at the following one by one • • • •

Maintain output type Maintain condition record MLFH output type Assigning forms and programs to the condition type Printer determination

24.1 Maintain output type BACKGROUND This configuration setting enables to define the output type. Output type controls • Access sequence • Output parameter • Print parameter to determine printer INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Output Determination → Maintain Output Types 1. Click 2. Click

to get change mode

3. Select WA01 output type by clicking the grey box in the left 4. Click

to copy the entry in different name

5. Change the name. E.g. ZA01 6. Click 7. Click 8. Click

9. New entry will appear as shown above 10.

Select the row ZA01

11.

Click

12.

Click

13.

Click

14.

maintain the entry as shown above

15.

Double click

Note: - For output type of mail message type, Mail text is maintained here. Let us look at the screen of MLGR.

Click text.

in the EN language row to maintain the mail

16.

double click

Note: - program to be called during the inventory management processing is referred here. If any new program is used that has to be mentioned here. 17.

Double click

18.

Click

19.

Click

24.2 Maintain output determination procedure BACKGROUND This configuration setting enables to define the output determination procedure. Output determination procedure contains all the output type. For inventory management the output procedure is ME0001 predefined by SAP. Let us add the newly created condition ZA01 to the predefined procedure ME0001. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Output Determination → Maintain Output Determination Procedures 1. Click

2. Double click

3. Select the row MR0001 4. Double click 5. Click 6. Enter Step. E.g.200 7. Enter Counter. E.g. 10 8. Enter condition type. E.g. ZA01 9. Click 10.

Click

11.

Click

till main IMG screen is reached

24.3 Maintain Condition Record BACKGROUND This configuration setting enables to define the condition record for output type. Recollect our discussion for MRP controller missing parts setup. We shall maintain the condition record for missing parts condition type MLFH. Apart from the above one, we shall discuss the condition record for ZA01. To maintain condition record for SAP defined output type, run program RM07NKON to create the condition records automatically. User parameter associated with the output conditions are NDR and value X (upper case) – indicates that the print indicator is always set when entering GR ND9 – define the individual user groups value for printer determination by plant/storage location/user group. Note:- Many condition records are already available in the system. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Output Determination → Maintain Condition 1. Click

2. Double click 3. Enter output type as MLFH 4. Click 5. Click

6. Select the row by clicking the grey box in the left 7. Click 8. Maintain the details as shown below.

9. From the top of the screen follow the menu as shown below.

10.

Maintain the entries as shown below

11.

Click

12.

Click

13.

Click

and maintain one more parameter

14.

Click

Let us look at the condition type for WE01

15.

Double click

16.

Enter output type WE01

17.

Click

18.

Maintain Trams/Even type as WE

19.

Maintain Print version as 1

20.

Click

Note:- Condition record maintained. 21.

Click

24.4 Assign Forms and Programs BACKGROUND This configuration setting enables to define the forms and programs to the output type. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Output Determination → Assign Forms and Programs 1. Click

2. Select row WA01 3. Click

4. Enter the output type as ZA01 5. Assign the required form developed by SAP script. 6. Click 7. Click 8. Click Effect of this configuration Output types are assigned with the required SAP script layout to print the GR or GI document as desired.

25.

Printer Determination by Plant/Storage Location

BACKGROUND This configuration setting enables to define the printer determination for Plant and storage location combination. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Output Determination → Printer Determination → Printer Determination by Plant/Storage Location 1. Click

2. Select any row to copy. E.g. WA01/0001/0001 row 3. Click 4. Maintain the entries as shown below

Note: - Maintain the configured in the SAP.

5. Click 6. Click

right

output

device which is

Effect of this configuration Output types are maintained. Output type assigned to the standard procedure ME0001. Condition records are maintained. Required programs and forms are attached to the output type Printer determination condition records for the combination of Plant/Storage location are maintained through which printer is determined automatically.

26.

Stock Determination

BACKGROUND This configuration determination.

setting

enables

to

define

the

stock

Stock determination is the plant level setting contains stock determination group (like availability checking group) and stock determination rule (availability check rule) Stock determination strategy used to automatically with draw material from different stock in a predefined order. E.g. first with draw from unrestricted stock, then from consignment stock determination group is assigned to the material master record. Let us look the stock determination in details with the configuration screens.

26.1 Define Strategies for Stock Determination BACKGROUND This configuration setting enables to define the strategies for stock determination group. Stock determination group will be maintained in the material master. Stock determination group and stock determination rule collectively decides the sequence of stock with drawl. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Stock Determination → Define Strategies for Stock Determination 1. Click

2. Select the first row to copy and create the one for plant IND6.

3. Click 4. Maintain the entries as shown below.

5. Click 6. Double click 7. Click

8. Enter stock determination rule and description. E.g. IN01 and Rule for PP in IND6. 9. Click 10.

Click

11.

Double click

12.

Select the first row to copy for IND6

13.

Click

14.

Click

15.

Click

16.

Click

17.

Maintain the description as shown below

18.

Click

19.

Select the created row

20.

Double click

21.

Maintain the entries as shown below

• Stock type – F indicates unrestricted stock, K indicates consignment stock • Storage location – from where the material is to be issued. • Priority indicator indicates the priority to access the storage location and stock type. 22.

Click

23.

Click

till the main IMG screen is reached.

Effect of this configuration Stock determination group defined here is to be maintained in the material master. According to the rule defined here, system will perform the stock determination. I.e. first it will check the RM01 stock, then RM02 and then SF01 of

unrestricted stock and then the consignment stock in the above locations. Below screen shows the material master where it is to be maintained.

26.2 Assign Stock determination rule in Applications BACKGROUND This configuration setting enables to define the stock determination rule in the application area where it is to be applied. SAP supports the following applications areas. Inventory management Production order Repetitive Manufacturing Pull List KANBAN Delivery Warehouse Management In inventory management stock determination rule is defined for movement type wise. In Production order it is defined for plant and order type combination In repetitive manufacturing, it is defined for each repetitive manufacturing profile In pull list it is defined for each plant. In warehouse it is defined for warehouse number and movement type combination. Let us look at the first two. INSTRUCTIONS

Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Stock Determination → Assign Stock Determination Rule in Applications → Inventory Management 1. Click

2. Define the stock determination rule to the movement type. 3. Click 4. Click 5. Click in the line determination for production order.

to define stock

6. Click 7. Maintain the filed entries as shown below.

Field Name

- Opeation

Determinatin

Field Description and value key identifying plant. E.g. IND6 Key identifying the production order type. E.g. UA70 Operation for stock determination. Possible entries are

Indicates no checking is to be done. Leave it blank. key identifying the stock determination rule. E.g. IN01 Batch Tick in this check box will execute automatic batch determination along with the stock determination.

8. Click 9. Click

till main IMG screen is reached.

Effect of this configuration Stock determination will be performed during respective application as per the setting defined here.

the

27.

Reporting

Define Stock List Display

BACKGROUND This configuration setting enables to define the stock display reporting related settings. Standard SAP settings are sufficient and no need to change anything. It is important to know about this setting so as to enable you to map the process if required. Let us look at the SAP standard setting and discuss. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Inventory Management and Physical Inventory → Reporting → Define Stock List Display 1. Click

2. Click

Field Name

Field description and Value Key identifying the display version. Used in MMBE transaction. E.g. 99 Description to the display version. E.g. Only stock

3. Click 4. Click 5. Click

.

6. Select the first two rows to copy to create new entry 7. Click 8. Enter version number 99 and other entries as shown below

9. Click 10.

Click

Effect of this configuration Stock display will be as per the settings configured here. Version1 (standard SAP) stock display screen: -

Version 99 stock display screen: -

28.

Price Control in material Type

BACKGROUND This configuration setting enables to define the price type for material type. Price type either standard price or moving price is a mandatory entry in the material master. If it is fixed at configuration for material type level, then user will not be able change through master data transaction. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Valuation and Account Assignment → Define Price Control for Movement Type 1. Click

2. Enter price control will not allow the 3. Tick in the check box user to change during master data transaction. 4. Click 5. Click Effect of this configuration Material type field in the material master can not be changed.

29.

Split Valuation

Activate Split Valuation

BACKGROUND This configuration setting enables to define the split valuation. Split valuation is used to define two valuation class for a material. Need to define two valuation class to a material arise when there is a need to post the different stock to the different GK accounts. Example: A material can be purchased from local as well as from overseas supplier in same material code number for the planning convenience. To post locally purchased material to one GL account and the imported to another GL accounts, split valuation is used. Note: - Split valuation can be used along with the moving average price (price type – V) only. Let us try to configure split valuation to post raw material. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Valuation and Account Assignment → Split Valuation → Activate Split Valuation 1. Click

2. Ensure

radio button is active.

3. Click 4. Click Effect of this configuration This configuration setting activates the split valuation.

30.

Configure Split Valuation

BACKGROUND This configuration setting enables to configure the split valuation. Steps involved in the Split valuation configuration are • Define valuation type – it is to be maintained in the material master accounting view • Define Valuation category - contains the possible valuation classes assigned to it and also mapped with valuation type. • Define the split valuation to the individual plants. Let us look at each step one by one. Note: - To work with batch management and split valuation, activate the SAP standard valuation category X to the required plant. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Valuation and Account Assignment → Split Valuation → Configure Split Valuation 1. Click 2. Click

3. Click

4. Click 5. Maintain the entries as explained below Field Name

Field description and value Key identifying the valuation type. E.g. I6 External purchase order allowed or not. E.g. 2 to indicate External PO are allowed. Possible entries are

Internal purchase order allowed or not. E.g. 0. Possible entries are

Account category reference. Key carrying valuation class with it. E.g. valuation class related to RM are attached with 0001 account category reference. 6. Click to display and choose if you are not aware of the list.

Note: Click on the required account category reference and click

7. Click 8. Click

two times

9. Click

10.

Click

11.

Maintain the field entries as explained below.

Field name

Field description and value Key identifying the valuation category. E.g. I Text for valuation category. E.g. Import / Local Default valuation type to be

proposed when raising PO for external procurement. If this check box is ticked user can not change the valuation type at PO level. Similar to that of External procurement and check box for external procurement mandatory. This check box is used with batch management and split valuation. Creates valuation record for each batch.

12.

Click

13.

Click

14.

Click

15. Click to allocate the valuation type to the valuation category and activate. 16. Click the required valuation type. E.g. IMPORT in this case.

17.

Click

18.

Click

if you get any warning message

19. Message bottom 20.

will appear at the

Screen will look like as shown below

Note: - Repeat the step numbers 16 to 19 to activate more valuation type to the valuation category.

21.

Click

22.

Click

two times

23. Select the plant where you want to define. E.g. Plant IND6 in this case. 24.

Click

Note: - Three valuation categories are activated to this plant IND6. 25.

Click

26.

Click

Message

will appear at the bottom

Screen will look like as shown below.

27.

Click

28.

Click

29.

Click

30.

Click

two times

Click on Click Assign the valuation type for external procurement to this valuation category I as shown below.

Note: - This is to propose as a default value only. 31.

Click

32.

Click

33.

Click

Effect of this configuration This configuration setting enables to use the split valuation in plant IND6. When creating the material, maintain the valuation category in the accounting1 view as shown below.

Save the material master with required valuation category. E.g. with I in this case Note: - Once the valuation type is assigned to the material master, it is not possible to change the valuation category. Again with the create mode (MM01) transaction, • Select the accounting view • Enter Plant • Enter valuation type. E.g. Import. Only valuation type IMPORT is assigned to the valuation category I. • Enter the required valuation class.

Again log on in the create mode, • Select accounting view • Valuation type to refer another valuation class to the same material. Note: - Possible entries can be displayed by pressing F4 in the field.

X indicates it is already assigned. • Let us select External in this case.

Another valuation class to the same material TESTSPLIT3 can be assigned

31.

Define Valuation Classes

BACKGROUND This configuration setting enables to define valuation class. Please note that this is totally a FI related configuration, Let us have an over view of it. Prior to this there are many FI related settings like Chart of accounts, GL account definition Valuation control definition Grouping of valuation area Let us try to understand the valuation class related settings. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Valuation and Account Assignment → Account Determination → Account Determination Without Wizard → Define Valuation Classes 1. Click

2. Click

This is the Account category reference to be used to link with valuation class. 3. Click 4. Click

5. Valuation class is created reference is assigned.

and

account

category

Note: - Accounting category reference is assigned for similar accounts. E.g. account category reference 0001 may be assigned for different valuation classes related to Raw Materials. 6. Click 7. Click

Account category reference for each material type is maintained here.

8. Click

till main IMG screen is reached.

Effect of this configuration Valuation class to each material type is assigned as per the setting maintained here. Account category reference 0009 is linked for only one valuation class 7920.

This account category reference 0009 is assigned to the material type FERT. When creating FERT material type, only one valuation class will be available to select.

32.

Define Account Grouping for Movement type

BACKGROUND This configuration setting enables to define account grouping for movement type. Every movement type contains the transaction event key which is SAP default. Account group key along with the transaction event key; exactly pinpoint the GL account to be hit during posting. Example: Transaction event key for inventory posting is GBB. GL accounts to be posted for each movement type may be different. I.e. one GL account for 261 movement type, another account for 201 movement type. This is achieved through the account grouping. Let us discuss the standard SAP setting for inventory posting. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Valuation and Account Assignment → Account Determination → Account Determination Without Wizard → Define Account Grouping for Movement Types 1. Click

2. Select the line as shown above 3. Click

4. Click

till the main IMG screen is reached

Effect of this configuration GL account during inventory posting is determined as per the configuration done here.

33.

Configure Automatic Posting

BACKGROUND This configuration setting enables to configure the automatic posting. Please note this is an FI related setting, but a clear understanding of this setting is essential to MM module person. Let us discuss the SAP standard setting for inventory transaction event key BSX. INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Valuation and Account Assignment → Account Determination → Account Determination Without Wizard → Configure Automatic Posting 1. Click 2. Click

3. Click

4. Double click any row to have a detail view. E.g. BSX 5. Enter Chart of accounts.

6. GL account is automatically determined to post the inventory during GR for material with valuation class as shown above. 7. Click 8. Click

9. Enter plant, material number and select movement type as shown above 10.

Click

11.

Click

to display more details. till main IMG screen is reached.

Effect of this configuration GL account during inventory posting is determined for each valuation class as per the configuration done here.

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