Fitter Snacker Module 2

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Fitter Snacker Module 2

• Materials Management
• Organizational Structures

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Course Outline
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Materials Management (MM)

• The Material Management (MM) module in SAP
  manages all purchasing activities, goods receipt
  functions, storing and issuing of materials
• The MM and FI module are integrated
• All materials are described in MM
• All vendors are described in MM and FI
• All purchasing activities take place in MM
• The relationship between vendors and materials
  are also stored in the MM module.

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Organizational Elements Plants

• A plant can be a manufacturing facility,
  distribution center or office.
• At least one plant must be defined.
• A plant is assigned to only one company code.
• to determine the shipping point.

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Organizational Elements Storage Locations

• Storage Locations identify where material is
  stored. More than one storage location can be
  assigned to a plant to help in managing material.

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Purchasing Organization

• The organization in the company responsible for
  the procurement of materials and services for one
  or many plants
• Goal of ERP systems is to automate mundane
  transactions so purchasing personnel can practice
  strategic sourcing to save money
• Assignments can be used to represent different
  purchasing organizational structures
• Centralized vs. Decentralized

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Procurement Process
Purchase Requisition
Purchase Order
Internal Demand
Goods Receipt
Customer
Vendor
Invoice Receipt
Pay Invoice
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Corporate-group-wide purchasing

• A purchasing organization is responsible for the
  purchasing activities of different company codes.
• In this case, you do not assign a company code to
  the purchasing organization, but assign plants
  from different company codes to the purchasing
  organization.

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Corporate-group-wide purchasing
Purch. Org. 1000
Company Code 1000
Company Code 2000
Company Code 3000
Plant 1000
Plant 2000
Plant 3000
Plant 4000
Plant 5000
Plant 6000
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Company-specific purchasing

• A purchasing organization is responsible for the
  purchasing activities of just one company code.
• In this case, you assign a company code to the
  purchasing organization. The purchasing
  organization may procure only for this company
  code. You assign only plants of the company code
  concerned to the purchasing organization.

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Company-specific purchasing
Purch. Org. 1000
Purch. Org. 2000
Purch. Org. 3000
Company Code 1000
Company Code 2000
Company Code 3000
Plant 1000
Plant 2000
Plant 3000
Plant 4000
Plant 5000
Plant 6000
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Plant-specific purchasing

• A purchasing organization is responsible for the
  purchasing activities of only one plant.
• In this case, you assign the plant and the
  company code of the plant to the purchasing
  organization. The purchasing organization may
  procure for this plant only.

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Plant-specific purchasing
Purch. Org. 1000
Purch. Org. 2000
Purch. Org. 3000
Purch. Org. 4000
Purch. Org. 5000
Purch. Org. 6000
Company Code 1000
Company Code 2000
Company Code 3000
Plant 1000
Plant 2000
Plant 3000
Plant 4000
Plant 5000
Plant 6000
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Purchasing Groups

• Organization of buyers into groups
• Usually based on materials
• Used for reporting