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The reference PURCHASING organization can be DEFINED as an organization WHOSE CONDITIONS or CONTRACTS are linked to other purchasing organizations. This organization can make conditions or contracts that can easily be used in other purchasing organizations.

The reference purchasing organization can be defined as an organization whose conditions or contracts are linked to other purchasing organizations. This organization can make conditions or contracts that can easily be used in other purchasing organizations.

The DIFFERENT ways to organize purchasing ORGANIZATIONS is distributed purchasing and centralize purchasing. Distributed purchasing REPRESENTS multiple purchasing organization for multiple plants and centralized purchasing represents one purchasing organization PER plant.

The different ways to organize purchasing organizations is distributed purchasing and centralize purchasing. Distributed purchasing represents multiple purchasing organization for multiple plants and centralized purchasing represents one purchasing organization per plant.

You can configure the storage location by navigating the following menu path:
SELECT Display IMG ->Enterprise STRUCTURE ->Definition->MAINTAIN storage location

You can configure the storage location by navigating the following menu path:
Select Display IMG ->Enterprise structure ->Definition->Maintain storage location

A storage LOCATION is a unique four-character alphanumeric key; therefore, it cannot be COMMON for TWO PLANTS.

A storage location is a unique four-character alphanumeric key; therefore, it cannot be common for two plants.

Storage locations can be created AUTOMATICALLY when an inward goods movement for a material is performed. In ORDER to CREATE a storage location automatically, open the Sap IMPLEMENTATION guide and then follow this path:
Materials Management->Inventory Management and PHYSICAL Inventory->Goods Receipt->Create Storage Location Automatically.

Storage locations can be created automatically when an inward goods movement for a material is performed. In order to create a storage location automatically, open the Sap implementation guide and then follow this path:
Materials Management->Inventory Management and Physical Inventory->Goods Receipt->Create Storage Location Automatically.

In SAP system, a STORAGE location is the PLACE where you can store your STOCK of goods, WITHIN the premises of a plant. Each plant has at least one storage location ASSIGNED to it.

In SAP system, a storage location is the place where you can store your stock of goods, within the premises of a plant. Each plant has at least one storage location assigned to it.

YES, you can ASSIGN a COMPANY CODE to many plants.

Yes, you can assign a company code to many plants.

You can ASSIGN only ONE COMPANY CODE to a PLANT.

You can assign only one company code to a plant.

A PLANT is an ORGANIZATIONAL unit, where materials are PRODUCED or goods and services are provided. In SAP, it is represented by a unique four-digit ALPHANUMERIC number. A plant is allocated to one company code and a company can have many plants. In an organizational unit, a plant can be at one of the following locations:

•  Corporate headquarters
•  Central delivery WAREHOUSE
•  Manufacturing facility
•  Regional sales office

A plant is an organizational unit, where materials are produced or goods and services are provided. In SAP, it is represented by a unique four-digit alphanumeric number. A plant is allocated to one company code and a company can have many plants. In an organizational unit, a plant can be at one of the following locations:

You can ASSIGN ONE or more COMPANY CODES to a company.

You can assign one or more company codes to a company.

You can ASSIGN many COMPANY CODES in a chart of ACCOUNTS.

You can assign many company codes in a chart of accounts.

In a COMPANY, only ONE CHART of ACCOUNTS can be ASSIGNED.

In a company, only one chart of accounts can be assigned.

You can ASSIGN a company code to a company by performing the following steps:
1. Open the SAP Customizing IMPLEMENTATION guide.
2. Click ENTERPRISE Structured Assignments Financial Accounting -> Assign company code to company. The Change VIEW "Assign Company Code - Company": Overview screen appears where you can assign a company code to a company.

You can assign a company code to a company by performing the following steps:
1. Open the SAP Customizing Implementation guide.
2. Click Enterprise Structured Assignments Financial Accounting -> Assign company code to company. The Change View "Assign Company Code - Company": Overview screen appears where you can assign a company code to a company.

In SAP, the company CODE is created using the transaction OX02. The company code field is defined as a four-character alphanumeric string. You can create a company code in SAP by performing the following steps:
1. Open the SAP Customizing Implementation guide.
2. CLICK ENTERPRISE Structured-->Definition-->Financial Accounting-->Edit, Copy, Delete, Check Company Code. The Choose Activity dialog box appears.
3. Double-click Edit Company Code Data. The Change View "Company Code": Overview SCREEN appears where you can create a company code.

In SAP, the company code is created using the transaction OX02. The company code field is defined as a four-character alphanumeric string. You can create a company code in SAP by performing the following steps:
1. Open the SAP Customizing Implementation guide.
2. Click Enterprise Structured-->Definition-->Financial Accounting-->Edit, Copy, Delete, Check Company Code. The Choose Activity dialog box appears.
3. Double-click Edit Company Code Data. The Change View "Company Code": Overview screen appears where you can create a company code.

You can create a client in MM module either by using the transaction CODE SCC4 or by performing the following steps:
1. CLICK SAP menu-->Tools-->Administration-->Client Administration.
2. Double-click SCC4 Client Maintenance. The display View "Clients": Overview screen appears.
3. Click the Display -> Change BUTTON. The INFORMATION dialog box appears.
4. Click the Continue button. The Change View "Clients": Overview screen appears where you can create a new client.

You can create a client in MM module either by using the transaction code SCC4 or by performing the following steps:
1. Click SAP menu-->Tools-->Administration-->Client Administration.
2. Double-click SCC4 Client Maintenance. The display View "Clients": Overview screen appears.
3. Click the Display -> Change button. The Information dialog box appears.
4. Click the Continue button. The Change View "Clients": Overview screen appears where you can create a new client.

A client can be DEFINED as a person, company, or an organization that PURCHASES goods from another person, company, or organization and pays for that. In terms of SAP, a client can be defined as a UNIT that has its own MASTER records and a set of tables. It is important in SAP because it STORES and maintains data about the organization where SAP is implemented.

A client can be defined as a person, company, or an organization that purchases goods from another person, company, or organization and pays for that. In terms of SAP, a client can be defined as a unit that has its own master records and a set of tables. It is important in SAP because it stores and maintains data about the organization where SAP is implemented.

<P>The client is the top LEVEL of the organizational units of Enterprise Structure in R/3. The client is followed by the company code, which represents a UNIT with its own accounting, BALANCE, and P&L The next level of organizational units of Enterprise Structure is plant, representing an OPERATIONAL unit of a company.

The client is the top level of the organizational units of Enterprise Structure in R/3. The client is followed by the company code, which represents a unit with its own accounting, balance, and P&L The next level of organizational units of Enterprise Structure is plant, representing an operational unit of a company.

•  The MM module deals with material procurement on the basis of the production required; therefore, it is linked with the Purchasing PLANNING (PP) module.
•  The Sales and Distribution (SD) module is proportionally related to the MM module, because it uses information about the quantity of material sent for production.
•  The MM module is related to the Warehouse MANAGEMENT (WM) module, because the MM module maintains information about the material storage and material transfer inside an ORGANIZATION.
• The MM module is also related with the FINANCIAL Accounting (FI) module, because every operation performed in the MM module directly impacts the financial process of the organization.

MM stands for Material Management and is a part of the LOGISTIC functional area of SAP R/3. It is an important SAP R/3 module, because it HELPS manage broad-level business activities, such as procurement, valuation and assignment, BATCH management and material storage. Since the materials are the most precious resource of an organization, extreme care needs to be taken in all the PROCESSES related to materials management. Efficient material management is the ESSENCE of the MM module of SAP R/3.

MM stands for Material Management and is a part of the Logistic functional area of SAP R/3. It is an important SAP R/3 module, because it helps manage broad-level business activities, such as procurement, valuation and assignment, batch management and material storage. Since the materials are the most precious resource of an organization, extreme care needs to be taken in all the processes related to materials management. Efficient material management is the essence of the MM module of SAP R/3.

The core functionalities of the SAP system consists of Sales and DISTRIBUTION (SD), Materials Management (MM), FINANCIAL Accounting (FI), and Production Planning (PP). In the first phase, the companies implement the SAP software with these core functionalities and later in the second and THIRD phase, they may also INTRODUCE other functionalities, such as Controlling (CO), Warehouse Management (WM), Human Resource (HR). However the type of modules and the phasing of implementation solely depends on the type of industry the client WORKS as well as the organization's readiness and urgency for the need to adopt integrated enterprise system such as SAP.

The core functionalities of the SAP system consists of Sales and Distribution (SD), Materials Management (MM), Financial Accounting (FI), and Production Planning (PP). In the first phase, the companies implement the SAP software with these core functionalities and later in the second and third phase, they may also introduce other functionalities, such as Controlling (CO), Warehouse Management (WM), Human Resource (HR). However the type of modules and the phasing of implementation solely depends on the type of industry the client works as well as the organization's readiness and urgency for the need to adopt integrated enterprise system such as SAP.

SAP is the most popular ENTERPRISE Resource Planning (ERP) software APPLICATION USED to provide enterprise business solutions. It was first introduced in 1972 in Mannheim, Germany. SAP stands for Systems Applications and Products in Data PROCESSING.

•  SAP provides complete business solutions by integrating various business tasks, such as sales, purchase, and production. It takes information from ONE business process and incorporates the same into another business process, thereby speeding up business processes. For example, the information about the raw material in stock is used by the production department to prepare products.
•  It is most widely used in industries, because it automates business processes and provides real-time solutions for them, that is, it updates and processes the data very quickly.

SAP is the most popular Enterprise Resource Planning (ERP) software application used to provide enterprise business solutions. It was first introduced in 1972 in Mannheim, Germany. SAP stands for Systems Applications and Products in Data Processing.

No, a PO is released at the HEADER level meaning a total release or “With Classification”.
PRs, on the other hand, have two release PROCEDURES possible. “With Classification” as DESCRIBED above, and “Without Classification” where it is only possible to release the PR item by item.

No, a PO is released at the header level meaning a total release or “With Classification”.
PRs, on the other hand, have two release procedures possible. “With Classification” as described above, and “Without Classification” where it is only possible to release the PR item by item.

A Material Type DESCRIBES the characteristics of a material that are important in regards to Accounting and Inventory Management. A material is assigned a type when you create the material master RECORD. “Raw MATERIALS”, “Finished Products”, and “Semi-Finished Products” are examples. In the standard MM module, the Material Type of ROH denotes an EXTERNALLY procured material, and FERT indicates that the relevant material is PRODUCED in-house.

A Material Type describes the characteristics of a material that are important in regards to Accounting and Inventory Management. A material is assigned a type when you create the material master record. “Raw Materials”, “Finished Products”, and “Semi-Finished Products” are examples. In the standard MM module, the Material Type of ROH denotes an externally procured material, and FERT indicates that the relevant material is produced in-house.

Perform a price COMPARISON using ME49 and one may COMPARE QUOTATIONS from DIFFERENT vendors.

Perform a price comparison using ME49 and one may compare quotations from different vendors.

The following creates a ROUGH PICTURE of the MM Cycle. CREATE material, create VENDOR, assign material to vendor, procure raw material through PR, locate vendor for certain material, processing GR, goods issue, and invoice verification.

The following creates a rough picture of the MM Cycle. Create material, create vendor, assign material to vendor, procure raw material through PR, locate vendor for certain material, processing GR, goods issue, and invoice verification.

Some examples are UNIT of Issue, Storage Conditions, PACKAGING DIMENSIONS, Gross Weight, Volume, and Hazardous Materials Number. Also, there are various Storage Strategies information and options.

Some examples are Unit of Issue, Storage Conditions, Packaging Dimensions, Gross Weight, Volume, and Hazardous Materials Number. Also, there are various Storage Strategies information and options.

Once a vendor has received an RFQ, the vendor will send back a quote that will be legally BINDING for a certain period of time. Specifically, a Quotation is an OFFER by a vendor to a purchasing organization regarding the supply of material(s) or performance of service(s) subject to specified conditions. The Quotation then need to be maintained in the “Maintain Quotation: XXXX” screens.

Once a vendor has received an RFQ, the vendor will send back a quote that will be legally binding for a certain period of time. Specifically, a Quotation is an offer by a vendor to a purchasing organization regarding the supply of material(s) or performance of service(s) subject to specified conditions. The Quotation then need to be maintained in the “Maintain Quotation: XXXX” screens.

The Source List IDENTIFIES preferred sources of supply for certain materials. If the Source List has been properly maintained, it will IDENTIFY both the source of a MATERIAL and the period of time in which you can ORDER the material from the source.

The Source List identifies preferred sources of supply for certain materials. If the Source List has been properly maintained, it will identify both the source of a material and the period of time in which you can order the material from the source.

The Invoice Verification component completes the material procurement process and allows CREDIT memos to be PROCESSED. Invoice Verification INCLUDES entering invoices and credit memos that have been RECEIVED, checking accuracy of invoices with respect to price and arithmetic, and checking block invoices (these are the ones which DIFFER too much from the original PO).

The Invoice Verification component completes the material procurement process and allows credit memos to be processed. Invoice Verification includes entering invoices and credit memos that have been received, checking accuracy of invoices with respect to price and arithmetic, and checking block invoices (these are the ones which differ too much from the original PO).

NEGATIVE Stocks are necessary when Goods Issues are entered necessarily (BUSINESS PROCESS reasons) prior to the corresponding Goods Receipts and the material is already located physically in the warehouse.

Negative Stocks are necessary when Goods Issues are entered necessarily (business process reasons) prior to the corresponding Goods Receipts and the material is already located physically in the warehouse.

Transaction Code OMW1 allows you to set PRICE control to S (STANDARD Price) or V (Moving Average Price).
Under Standard Price (S), the materials and accounting documents are both valid. The one with the lower VALUE will be posted with a price variance ENTRY.

Transaction Code OMW1 allows you to set price control to S (Standard Price) or V (Moving Average Price).
Under Standard Price (S), the materials and accounting documents are both valid. The one with the lower value will be posted with a price variance entry.

TRANSACTION Code OLMS has a HOST of OPTIONS that are not accessible through the IMG.

Transaction Code OLMS has a host of options that are not accessible through the IMG.

Transaction CODES OLMD ACCESSES MM-CBP, OLMB accesses MM-IM, OLME accesses MM-PUR, OLML accesses MM-Warehouse MANAGEMENT, OLMS accesses Material Master Data, and OLMW is the proper transaction for valuation and ACCOUNT assignment.

Transaction Codes OLMD accesses MM-CBP, OLMB accesses MM-IM, OLME accesses MM-PUR, OLML accesses MM-Warehouse Management, OLMS accesses Material Master Data, and OLMW is the proper transaction for valuation and account assignment.

EINA contains general DATA of the (Purchasing) Information Record; EINE includes Purchasing Organization of the same. MAKT is the Materials Description table, MARA-General Materials data, MARC-Plant Data for Materials, MARD-Storage Location Data for Material, MAST-Material to BOM Link, MBEW-Material Valuation, and MKPF-Header Material Document.
Some of the tables that DIRECTLY PERTAIN to the document types are T156 Movement Type and T023/T024 Groups Material and Purchasing.

EINA contains general data of the (Purchasing) Information Record; EINE includes Purchasing Organization of the same. MAKT is the Materials Description table, MARA-General Materials data, MARC-Plant Data for Materials, MARD-Storage Location Data for Material, MAST-Material to BOM Link, MBEW-Material Valuation, and MKPF-Header Material Document.
Some of the tables that directly pertain to the document types are T156 Movement Type and T023/T024 Groups Material and Purchasing.

LOOK at the Transaction Code OPPR INDICATOR. Assign PROPER indicator.

Look at the Transaction Code OPPR indicator. Assign proper indicator.

RMDATIND is USED to update Material Master Records and can be used for such ASSIGNMENTS as EXTENDING all materials to a new PLANT.

RMDATIND is used to update Material Master Records and can be used for such assignments as extending all materials to a new plant.

The material type SELECTED controls the views possible for material.
For a material to be used in the system it needs to be created for each PLANT. Multiple views of a material are possible but at a minimum, the material needs to have a description and a base unit of measure assigned on the basic data view. Additional department views (i.e. Accounting, Sales, PURCHASING, MRP, Warehouse) can be added at a later time by extending the material. As additional plants are added, a material will need to be EXTENDED to the plants before it can be used there.

The material type selected controls the views possible for material.
For a material to be used in the system it needs to be created for each plant. Multiple views of a material are possible but at a minimum, the material needs to have a description and a base unit of measure assigned on the basic data view. Additional department views (i.e. Accounting, Sales, Purchasing, MRP, Warehouse) can be added at a later time by extending the material. As additional plants are added, a material will need to be extended to the plants before it can be used there.

A Production Resource / Tool can be defined as a material if purchasing and inventory functions are to be carried out for that PRT.
The information required to be input is dependent upon which department views are being created. Thus, material MASTER information is typically ENTERED at different times by numerous system users. Note that to add a view, the “CREATE Material” transaction is used RATHER than the “Change Material” transaction.

A Production Resource / Tool can be defined as a material if purchasing and inventory functions are to be carried out for that PRT.
The information required to be input is dependent upon which department views are being created. Thus, material master information is typically entered at different times by numerous system users. Note that to add a view, the “Create Material” transaction is used rather than the “Change Material” transaction.

Pressing F4 gives a list of choices. SELECT the material TYPE for the material you are creating. For EXAMPLE, FHMI for Prod. Resources/tools, ROH for Raw Materials, FERT for Finished PRODUCTS, etc.

Pressing F4 gives a list of choices. Select the material type for the material you are creating. For example, FHMI for Prod. Resources/tools, ROH for Raw Materials, FERT for Finished Products, etc.

You can use transaction MM50.
To extend a material to a different plant requires selecting the NEW plant on the organizational level screen. Note that all views of a material are not extended unless they were selected on the initial screen. In addition, each plant may have a different system configuration requiring additional INPUTS on each of the DEPARTMENTAL screens. Material changes made in ONE plant do not change that material in other PLANTS.

You can use transaction MM50.
To extend a material to a different plant requires selecting the new plant on the organizational level screen. Note that all views of a material are not extended unless they were selected on the initial screen. In addition, each plant may have a different system configuration requiring additional inputs on each of the departmental screens. Material changes made in one plant do not change that material in other plants.

When CREATING any view, the INDUSTRY SECTOR and Material type will be automatically copied from an existing view, so LONG as at least ONE view exists.

When creating any view, the Industry Sector and Material type will be automatically copied from an existing view, so long as at least one view exists.

Standard Movement Types should not be deleted from the SYSTEM. The account assignments, HOWEVER, may be deleted for a PARTICULAR Movement Type in table T030 using transaction OBYC.
Another way to achieve the same RESULT is to enter Movement Type in transaction OMJJ. Remove MBXX from allowed TRANSACTIONS.

Standard Movement Types should not be deleted from the system. The account assignments, however, may be deleted for a particular Movement Type in table T030 using transaction OBYC.
Another way to achieve the same result is to enter Movement Type in transaction OMJJ. Remove MBXX from allowed transactions.

USE TRANSACTION ME54 and ME28 RESPECTIVELY.

Use Transaction ME54 and ME28 respectively.

Use Transaction CODE CT04. Follow these steps: Format (numeric, character, etc.), Unit of Measure, Templates, REQUIRED Entry, Intervals as VALUES (?), descriptions for texts for characteristics and characteristic values, display options for characteristics on the value assignment screen, Allowed Values, Default Values that are set AUTOMATICALLY on the Value Assignment Screen.

Use Transaction Code CT04. Follow these steps: Format (numeric, character, etc.), Unit of Measure, Templates, Required Entry, Intervals as Values (?), descriptions for texts for characteristics and characteristic values, display options for characteristics on the value assignment screen, Allowed Values, Default Values that are set automatically on the Value Assignment Screen.

CLASS is defined as the group of CHARACTERISTICS, which can be attributed to a product. Use Transaction CL01. ENTER the value for the Class name and a small description. Select the group from it. The values on the DIFFERENT tabs are not mandatory, so you can skip the values if you wish or you can go to any extent needed. Save, and the Class is created.

Class is defined as the group of characteristics, which can be attributed to a product. Use Transaction CL01. Enter the value for the Class name and a small description. Select the group from it. The values on the different tabs are not mandatory, so you can skip the values if you wish or you can go to any extent needed. Save, and the Class is created.

USE TRANSACTION OMGQ.

Use Transaction OMGQ.

They shouldn’t because ROH TYPE materials are procured from the outside not sold and FERT type materials are CREATED inside and aren’t procured.
In some special cases, we have to sell raw materials (ROH) and buy finished goods (FERT) from outside SOURCES. The VIEWS must be extended in these cases using transactions OMS2 and MM50.

They shouldn’t because ROH type materials are procured from the outside not sold and FERT type materials are created inside and aren’t procured.
In some special cases, we have to sell raw materials (ROH) and buy finished goods (FERT) from outside sources. The views must be extended in these cases using transactions OMS2 and MM50.

Material Groups, EXTERNAL Material Groups, DIVISIONS, Material Status, LABS &AMP; Offices, Basic Materials, Storage Conditions, Temperature Conditions, Container Requirements, and Units or Measure Groups.

Material Groups, External Material Groups, Divisions, Material Status, Labs & Offices, Basic Materials, Storage Conditions, Temperature Conditions, Container Requirements, and Units or Measure Groups.

EKBN Purchase Requisition
EBKN Purchase Requisition ACCOUNT Assignment
EKAB RELEASE DOCUMENTATION
EKBE History of Purchase DOCUMENT

EKBN Purchase Requisition
EBKN Purchase Requisition Account Assignment
EKAB Release Documentation
EKBE History of Purchase Document

Use Transaction Code MM01. NAME the material, choose an industry sector, choose a material type, create or copy the views, add a basic description, give it’s attributes/values, MRP INFORMATION, REORDER point, accounting valuation, warehouse management information and then save the DATA.

Use Transaction Code MM01. Name the material, choose an industry sector, choose a material type, create or copy the views, add a basic description, give it’s attributes/values, MRP information, reorder point, accounting valuation, warehouse management information and then save the data.