Materials Management

The purpose of this manual is to provide a comprehensive guide for end-users on Material Master Management in SAP MM specifically tailored for the healthcare industry. Material Master Management plays a crucial role in managing the procurement, inventory, and supply chain processes for healthcare organizations. This manual is designed to help end-users understand the key steps for the maintenance of Material Master Management in SAP MM, and how they can effectively use it to streamline their day-to-day operations and control over their materials and inventory.
In this document you will also find specific material types created for healthcare industry which can be a reference if you are involved in SAP project implementation team.

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This SAP MM End User Guide (868 Pages PDF) provides a comprehensive list of 118 no of transactional processes. Each process is accompanied by a Business Process Overview, Tips & Tricks, and Procedural Steps, including screenshots.

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This sample SAP MM configuration guide provides step-by-step instructions on how to set up the necessary configurations to streamline the procurement processes specialized for a seat manufacturing company for automotive industry. The document covers following configuration steps:

• Creating Plants
• Assigning Plant to Company Code
• Maintaining Purchasing Organization
• Assigning Purchasing Organization to Plant
• Maintaining Storage Location
• Defining Number Ranges for Purchase Requisition
• Defining Document Type for Purchase Requisition
• Defining Number Ranges for Purchase Order
• Defining Document Types for Purchase Order
• Defining Number Ranges for Scheduling Agreement
• Defining Document Type for Scheduling Agreement
• Defining Number Ranges for Stock Transfer Order
• Setting Up Stock Transport Order
• Assigning Purchasing Organization to Company Code
• Assigning Purchasing Organization to Plant
• Creating Purchasing Groups
• Defining Valuation Class
  • Account Category Reference
  • Material Type / Account Category Reference
• Defining Release Group for PO
  • Defining Release Code for PO
  • Defining Release Strategy for PO

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Procure to Pay process in SAP is a business function that integrates purchasing and accounts payable systems to create greater efficiencies and control over global spending. It involves selecting, ordering, receiving, invoicing and paying for goods and services from external vendors.
In this 154 pages powerpoint training presentation, following Procure to Pay topics are covered;

• Organizational structure
• Master data: Material Master, Vendor Master, Purchasing Info Record, Source List, Service Master Record
• Sub-process involved in Procure to Pay (P2P)
• Configurations
• Interaction with other modules
• Key transactions

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In this file, you will find Business Blueprint documentation sample from an SAP S/4HANA implementation project for a chemical manufacturing company. Following topics are covered in this pdf document:

• Organization Structure: Company, Plant, Storage Location, Purchase Organization
• Material Master: Material Type, Vendor Master, Source List, Pricing, Service Master, Material Group, Unit of Measurement, Terms of Payment
• Business Procurement Process Flow:
  • Procure to Pay Process,
  • Procurement of Raw Material, Packaging Items, Spare Parts, Stationay Items, Capital Goods/Asset, Services, Import Goods
  • MM Flow Chart

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Intercompany stock transfer process in SAP is a process of transferring goods between two plants belonging to different company codes. The process involves creating a stock transport order (STO) in SAP ERP system. The STO is a document that contains information about the goods to be transferred, such as material number, quantity, and delivery date. Once the STO is created, it is sent to the receiving plant for processing. The receiving plant then creates a goods receipt (GR) against the STO when the goods are received. Finally, an invoice is created by the supplying plant and sent to the receiving plant for payment.

In this document, following scenario is covered in detail with screenshots:

• Customer places order to depot or salesman. Depot in charge forwards the order to corresponding sales in charge
• All such orders from customers (against a depot) and from depots are to be cumulated and entered in SAP. Use Transaction code – ME21N.
• Warehouse in charge reviews the pending order report. Use transaction VL10I. The report displays the delivery quantity along with stock available quantity.
  Warehouse in-charge decides the order to be executed today and create delivery document directly from pending order report.
• Packing in charge reviews the packing due list report VL10P. He then selects the delivery order and allocates carton nos. & PI no. to delivery document nos. He creates a packing instruction in SAP.
• SAP packing instruction is handed over to packer for packing.
• After packing a single carton or multiple cartons, the packing instruction sheet with actual packing contents is handed over to SAP user.
• SAP user makes packing modification where required in SAP and prints packing slip.
• Packing slips are inserted in the corresponding cartons and cartons are placed in loading bay.
• After all cartons are placed in loading bay, invoice in created in SAP using VF01 and vendor posting is done using MIRO. All relevant documents are printed and handed over to driver.

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Third-party procurement is a process where a company purchases goods or services from a third-party supplier instead of producing them in-house. In SAP third-party procurement is carried out in the components SD (Sales and Distribution) and MM (Materials Management). By creating a third-party item in a sales order, purchase requisition, or purchase order, you can request that the vendor sends the goods directly to your customer.
Created for an S/4 HANA implementation project, in this document following steps are covered for the procurement of Third Party in SAP.

• Purchase Requisition will be generate during sales order creation.
• Conversion of the approved Purchase Requisition to RFQ
• Maintain RFQ
• Price Comparison
• Conversion of RFQ in Purchase Order.
• Approval of PO by the Concerned Purchase Manager
• Goods receipt for the PO.
• Vendor Invoice Entry for the PO

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In SAP, A consumable material refers to a material that is subject to a procurement transaction and whose value is recorded in the cost element or asset accounts. Consumable material is thus procured directly for an account assignment object. Examples of consumable materials are office supplies and cleaning supplies.
Created for an S/4 HANA implementation project, in this document following steps are covered for the procurement of consumables in SAP.

• Creation of Purchase Requisition Manually
• Approval of Purchase requisition by the Concerned Department Manager
• Conversion of the approved Purchase Requisition to RFQ
• Maintain RFQ
• Price Comparison
• Conversion of RFQ in Purchase Order.
• Approval of PO by the Concerned Purchase Manager
• Goods receipt for the PO to Quality or Unrestricted
• Vendor Invoice Entry for the PO

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