SAP S/4HANA MM BBP Sample for a Chemical Company

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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How SAP Defines Indirect Sourcing and Indirect Procurement: Understanding the Key Differences

In SAP, indirect sourcing and indirect procurement refer to the acquisition of goods and services that are not directly related to the production or manufacturing process. Sourcing involves identifying, selecting, and contracting with suppliers, building relationships, evaluating supplier performance, and finding alternative sources of supply. Procurement, on the other hand, focuses on acquiring the needed …

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Inter Company Stock Transfer Process in SAP: Users Guide

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.
Inter Company Stock Transfer Flow Chart in SAP
Inter Company Stock Transfer Flow Chart in SAP

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Users Guide Third Party Procurement in SAP

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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Users Guide to Procurement of Consumables in SAP

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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7 Step Guide to Vendor Evaluation in SAP MM

In SAP, vendor evaluation is defined ranking vendors based on different criterias by checking performance of vendors . The vendor with highest rank is chosen for procurement activities.
In this document, you will find steps required to maintain vendor evaluation in SAP;

  • Step 1 – Define Weighting Key
  • Step 2 – Set Main Criteria and Subcriteria
  • Step 3 – Assign Criterias to Organization Data
  • Step 4 – Maintain Weighthing Key to Organization
  • Step 5 – Define Scope of List
  • Step 6 – Enter Score for Vendor Out of 100 (ME61)
  • Step 7 – Check Ranking List of Vendor (ME65)

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Yet Another SAP MM Configuration Document for Steel Industry

This configuration document will take you through to steps required customizing Materials Management module in SAP, specialised for Steel Industry. A similar SAP MM Configuration Guide for steel industry can be found here. The following steps are outlined in this document:

  • Configuration for MM Organization Structure in SAP
  • Configuration for MM Master Data
  • Configuration for Purchasing in SAP MM
  • Pricing Procedure for Purchase Order in SAP MM
  • Automatic Account Determination
  • Version Management in Purchasing

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SAP MM Business Blueprint Sample for Contracting Company

This sample (as reference) SAP Materials Management (MM) blueprint (BBP) documents records the business process requirements of a Contracting Manufacturing Company and outlines the requirement mapping in SAP. Following topics are described in document:

  • Enterprise Structure of Contracting Company
  • Master Data of Contracting Company
  • Business Process TO-BE as given by the Key Users
  • To-Be Process on SAP ERP system suggested by Consultants that was agreed during workshops

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SAP MM BBP: Purchase Order Process with Flow Diagram

This post captures a sample to-be Purchase Order process in SAP MM Purchasing module to give an idea to MM consultants for their Business Blueprint (BBP) documentations. A purchase order (PO) is a formal request or instruction from a purchasing organization to a vendor or a plant to supply or provide a certain quantity of …

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SAP MM BBP: Purchase Requisition Process with Flow Diagram

This post captures a sample to-be Purchase Requisition process in SAP MM Purchasing module to give an idea to MM consultants for their Business Blueprint (BBP) documentations. BBP To-Be Process Explanation of Purchase Requisition in SAP MM Purchasing SAP MM offers functionality of Purchase Requisition, purchase requisition can be generated in the system in both …

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