1 ... Materials Management Overview ... 19

1.1 ... Materials Management as a Part of SAP ... 19
... 1.1.1 ... SAP History ... 19
... 1.1.2 ... Core SAP Functionality ... 20
1.2 ... Materials Management as Part of Logistics ... 20
... 1.2.1 ... Definition of Logistics and Supply Chain ... 20
... 1.2.2 ... Management of the Supply Chain ... 21
... 1.2.3 ... SAP and Logistics ... 21
1.3 ... MM Integration with Other Modules ... 22
... 1.3.1 ... The Material Flow of the Supply Chain ... 22
... 1.3.2 ... The Information Flow of the Supply Chain ... 23
... 1.3.3 ... The Financial Flow of the Supply Chain ... 24
2 ... MM Organizational Structure ... 25

2.1 ... Client Structure ... 25
... 2.1.1 ... What is a Client? ... 25
... 2.1.2 ... Creating the Client Landscape ... 26
... 2.1.3 ... Defining a Client ... 27
... 2.1.4 ... Correction and Transport System (CTS) ... 27
2.2 ... Company Code ... 28
... 2.2.1 ... What is a Company? ... 28
... 2.2.2 ... Creating a Company Code ... 29
... 2.2.3 ... Assigning a Company Code ... 29
2.3 ... Plants ... 30
... 2.3.1 ... What is a Plant? ... 30
... 2.3.2 ... Prerequisites for a Plant ... 30
... 2.3.3 ... Defining a Plant ... 30
... 2.3.4 ... Valuation Level ... 32
... 2.3.5 ... Assigning a Plant ... 32
2.4 ... Storage Locations ... 33
... 2.4.1 ... What is a Storage Location? ... 33
... 2.4.2 ... Defining a Storage Location ... 33
... 2.4.3 ... Automatic Creation of Storage Locations ... 35
2.5 ... Warehouse and Storage Types ... 36
... 2.5.1 ... Assign a Warehouse to Plant and Storage Location ... 37
... 2.5.2 ... Storage Type ... 38
... 2.5.3 ... Storage Sections and Storage Bins ... 38
2.6 ... Purchasing Organization ... 39
... 2.6.1 ... What is a Purchasing Organization? ... 39
... 2.6.2 ... Types of Purchasing Organizations ... 39
... 2.6.3 ... Create a Purchasing Organization ... 40
... 2.6.4 ... Purchasing Groups ... 41
3 ... Master Data in MM ... 43

3.1 ... Material Master ... 43
... 3.1.1 ... Material Master Overview ... 43
... 3.1.2 ... Material Master Tables ... 43
... 3.1.3 ... Material Numbering ... 44
... 3.1.4 ... Material Number Range ... 46
... 3.1.5 ... Material Type ... 46
3.2 ... Vendor Master ... 48
... 3.2.1 ... Definition of a Vendor ... 48
... 3.2.2 ... Vendor Master in SAP ... 48
... 3.2.3 ... Vendor Account Groups ... 49
... 3.2.4 ... Vendor Number Range ... 52
3.3 ... Purchasing Information Data ... 54
... 3.3.1 ... Purchasing Information Record ... 54
... 3.3.2 ... Purchasing Information Record for a Non-Stock Material ... 54
... 3.3.3 ... Purchasing Information Record Numbering ... 54
... 3.3.4 ... Purchasing Information Record-Screen Layout ... 55
3.4 ... Batch Management Data ... 57
... 3.4.1 ... What is a Batch? ... 57
... 3.4.2 ... Batch Level ... 57
... 3.4.3 ... Changing the Batch Level ... 58
... 3.4.4 ... Batch-Status Management ... 58
... 3.4.5 ... Initial Batch Status ... 59
... 3.4.6 ... Batch-Number Assignment ... 59
3.5 ... Serial Number Data ... 60
... 3.5.1 ... What is a Serial Number? ... 60
... 3.5.2 ... Serial Number Profile ... 60
... 3.5.3 ... Serializing Procedures ... 61
4 ... Material Master Data ... 63

4.1 ... Industry Sector ... 63
4.2 ... Material Type ... 64
... 4.2.1 ... Standard Material Types ... 64
... 4.2.2 ... Configuring Material Types ... 67
... 4.2.3 ... Changing a Material Type ... 69
4.3 ... Basic Data ... 70
... 4.3.1 ... Creating a Material Master Record—Immediately ... 70
... 4.3.2 ... Creating a Material Master Record—Schedule ... 71
... 4.3.3 ... Creating a Material Master Record—Special ... 71
... 4.3.4 ... Organizational Levels ... 72
... 4.3.5 ... Basic Data Screen ... 74
4.4 ... Classification Data ... 79
... 4.4.1 ... Class Type ... 80
... 4.4.2 ... Classes ... 81
... 4.4.3 ... Characteristics ... 81
4.5 ... Purchasing Data ... 81
... 4.5.1 ... General Data ... 82
... 4.5.2 ... Purchasing Value Key ... 83
... 4.5.3 ... Other Data ... 86
... 4.5.4 ... Foreign Trade Data ... 87
... 4.5.5 ... Origin of Material ... 88
... 4.5.6 ... Preferences ... 88
... 4.5.7 ... Legal Control ... 89
... 4.5.8 ... Common Agricultural Policy (CAP) ... 89
... 4.5.9 ... Manufacturer Parts ... 89
4.6 ... Forecasting Data ... 90
... 4.6.1 ... General Forecast Data ... 91
... 4.6.2 ... Number of Periods Required ... 92
... 4.6.3 ... Control Data ... 92
4.7 ... Work Scheduling Data ... 94
... 4.7.1 ... General Data ... 95
... 4.7.2 ... Tolerance Data ... 96
... 4.7.3 ... Lot-Size Dependent In- House Production Time ... 96
... 4.7.4 ... Lot-Size Independent In- House Production Time ... 97
4.8 ... Sales Organizational Data ... 97
... 4.8.1 ... General Data ... 98
... 4.8.2 ... Grouping Items ... 99
... 4.8.3 ... Tax Data ... 100
... 4.8.4 ... Quantity Stipulations ... 100
... 4.8.5 ... Material Groups ... 102
... 4.8.6 ... Product Attributes ... 102
4.9 ... Sales General Data ... 102
... 4.9.1 ... General Data ... 103
... 4.9.2 ... Shipping Data ... 103
... 4.9.3 ... General Plant Parameters ... 104
4.10 ... Production Resources and Tools Data ... 105
... 4.10.1 ... General Data ... 105
... 4.10.2 ... Default Values for Task List Assignment ... 106
4.11 ... General Plant Data ... 107
... 4.11.1 ... General Data ... 107
... 4.11.2 ... Shelf-Life Data ... 110
4.12 ... Warehouse Management Data ... 111
... 4.12.1 ... General Data ... 112
... 4.12.2 ... Palletization Data ... 113
... 4.12.3 ... Storage Strategies ... 113
... 4.12.4 ... Storage Bin Stock ... 115
4.13 ... Quality Management Data ... 116
... 4.13.1 ... General Data ... 117
... 4.13.2 ... Procurement Data ... 118
4.14 ... Material Requirements Planning Data ... 119
... 4.14.1 ... Forecast Requirements ... 119
... 4.14.2 ... Planning ... 120
... 4.14.3 ... Availability Check ... 121
... 4.14.4 ... Bill of Materials Explosion ... 121
... 4.14.5 ... Discontinued Parts ... 122
... 4.14.6 ... Repetitive Manufacturing/Assembly ... 123
... 4.14.7 ... General Data ... 125
... 4.14.8 ... MRP Procedure ... 126
... 4.14.9 ... Lot Size Data ... 127
... 4.14.10 ... Procurement ... 128
... 4.14.11 ... Net Requirements Calculations ... 129
... 4.14.12 ... Deployment Strategy ... 130
4.15 ... Accounting Data ... 131
... 4.15.1 ... General Data ... 131
... 4.15.2 ... Current Valuation ... 132
... 4.15.3 ... Determination of Lowest Price ... 133
... 4.15.4 ... LIFO Data ... 133
4.16 ... Costing Data ... 134
... 4.16.1 ... General Data ... 135
... 4.16.2 ... Quantity Structure Data ... 135
5 ... Vendor Master Data ... 137

5.1 ... General Data ... 137
... 5.1.1 ... Address Screen ... 138
... 5.1.2 ... Control Screen ... 140
... 5.1.3 ... Payment Transactions ... 143
5.2 ... Accounting Information ... 146
... 5.2.1 ... Accounting Information ... 146
... 5.2.2 ... Payment Transactions ... 150
... 5.2.3 ... Correspondence Screen ... 153
5.3 ... Purchasing Data ... 155
... 5.3.1 ... Purchasing Data Screen ... 156
... 5.3.2 ... Partner Functions ... 159
6 ... Purchasing Information Data ... 161

6.1 ... Purchasing General Data ... 161
... 6.1.1 ... Create a Purchasing Information Record ... 161
... 6.1.2 ... Create a Purchasing Information Record with Material Number ... 162
... 6.1.3 ... Create a Purchasing Information Record without a Material Number ... 163
... 6.1.4 ... General Data Screen ... 163
6.2 ... Purchasing Organization Data ... 165
... 6.2.1 ... Conditions ... 166
... 6.2.2 ... Text Screen ... 169
... 6.2.3 ... Statistical Data ... 171
7 ... Batch Management Data ... 173

7.1 ... Batch Management Overview ... 173
... 7.1.1 ... Batch Definition ... 173
... 7.1.2 ... Pharmaceutical Industry ... 174
7.2 ... Batch Master Record ... 175
... 7.2.1 ... Creating a Batch ... 175
... 7.2.2 ... Changing a Batch ... 181
... 7.2.3 ... Deleting a Batch ... 182
7.3 ... Batch Determination ... 182
... 7.3.1 ... Batch Determination Condition Tables ... 183
... 7.3.2 ... Batch Determination Access Sequences ... 183
... 7.3.3 ... Batch Strategy Types ... 183
... 7.3.4 ... Batch Search Procedure ... 185
7.4 ... Batch Information Cockpit ... 186
... 7.4.1 ... Batch Information Cockpit Overview ... 186
... 7.4.2 ... Batch Information Cockpit Standard Configuration ... 187
... 7.4.3 ... Batch Information Cockpit User-Defined Configuration ... 189
8 ... Material Master Record ... 191

8.1 ... Creating a Material Master Record ... 191
... 8.1.1 ... Create a Material Master Record through a Schedule ... 191
8.2 ... Changing a Material Master Record ... 193
... 8.2.1 ... Change a Material Master Record—Immediately ... 193
... 8.2.2 ... Change a Material Master Record—Schedule ... 195
... 8.2.3 ... Change a Material Master Record—Activate ... 195
8.3 ... Material Master Deletion ... 197
... 8.3.1 ... Flag for Deletion— Immediately ... 197
... 8.3.2 ... Flag for Deletion— Schedule ... 198
... 8.3.3 ... Flag for Deletion— Proposal List ... 198
... 8.3.4 ... Material Master Archiving ... 199
... 8.3.5 ... Remove a Material- Deletion Flag ... 200
8.4 ... Loading Material Master Records ... 200
... 8.4.1 ... Loading Material Master Records via Direct Input ... 200
... 8.4.2 ... Distribution of Material Master Records via ALE ... 201
8.5 ... Production Versions ... 202
... 8.5.1 ... Production Version Overview ... 202
... 8.5.2 ... Creating a Production Version ... 202
... 8.5.3 ... Production Versions—Mass Processing ... 204
8.6 ... Revision Levels ... 205
... 8.6.1 ... Revision Level Overview ... 205
... 8.6.2 ... Revision Level Configuration ... 206
9 ... Vendor Master Record ... 207

9.1 ... Creating Vendor Master Record ... 207
9.2 ... Changing Vendor Master Record ... 210
... 9.2.1 ... Change Vendor Master Record—Current ... 210
... 9.2.2 ... Change Vendor Master Record—Planned ... 211
... 9.2.3 ... Display Planned Changes to Vendor Master Records ... 212
... 9.2.4 ... Activate Planned Changes ... 212
... 9.2.5 ... Change Vendor Account Group ... 213
9.3 ... Deleting Vendor Master Record ... 214
... 9.3.1 ... Flag a Vendor Master Record for Deletion ... 214
... 9.3.2 ... Deleting Vendor Records via Archiving ... 215
9.4 ... Display Vendor Master Record ... 215
... 9.4.1 ... Display Vendor Master Record—Current ... 215
... 9.4.2 ... Display Vendor Master Record—Per Key Date ... 215
... 9.4.3 ... Display Vendors— Purchasing List ... 216
9.5 ... Blocking Vendors ... 217
... 9.5.1 ... Block a Vendor— Purchasing ... 217
9.6 ... One Time Vendor ... 218
9.7 ... Vendor Sub-Range Functionality ... 219
10 ... Purchasing Overview ... 221

10.1 ... Purchase Requisition ... 221
10.2 ... Request for Quotation ... 222
10.3 ... Quotation ... 224
10.4 ... Purchase Order ... 225
10.5 ... Source List and Source Determination ... 226
... 10.5.1 ... Single Source ... 226
... 10.5.2 ... Multi-Source ... 227
... 10.5.3 ... Generate a Source List ... 229
... 10.5.4 ... Source Determination ... 230
10.6 ... Conditions in Purchasing ... 231
... 10.6.1 ... Condition Processing ... 231
... 10.6.2 ... Pricing Conditions ... 232
... 10.6.3 ... Taxes ... 233
... 10.6.4 ... Delivery Costs ... 233
10.7 ... Vendor Evaluation ... 233
... 10.7.1 ... Vendor Evaluation Overview ... 233
... 10.7.2 ... Vendor Evaluation Criteria ... 235
... 10.7.3 ... Vendor Evaluation Weighting ... 236
... 10.7.4 ... Points Scoring for Criteria ... 237
... 10.7.5 ... Maintain Vendor Evaluation ... 238
... 10.7.6 ... Scoring for Automatic and Semi-Automatic Criteria ... 239
... 10.7.7 ... Evaluation for a Material ... 240
11 ... Purchase Requisition ... 243

11.1 ... Indirectly Created Requisition ... 243
... 11.1.1 ... Purchase Requisition Created by Production Order ... 243
... 11.1.2 ... Purchase Requisition Created by Plant Maintenance Order ... 243
... 11.1.3 ... Purchase Requisition Created by Project Systems ... 244
... 11.1.4 ... Purchase Requisition Created by Materials Planning ... 244
11.2 ... Directly Created Requisition ... 244
... 11.2.1 ... Create a Purchase Requisition with a Material Master Record ... 245
... 11.2.2 ... Create a Purchase Requisition without a Material Master Record ... 250
11.3 ... Processing a Purchase Requisition ... 251
... 11.3.1 ... Change a Purchase Requisition ... 251
... 11.3.2 ... Display a Purchase Requisition ... 251
... 11.3.3 ... Close a Purchase Requisition ... 253
... 11.3.4 ... Follow-on Functions ... 253
12 ... Request for Quotation ... 255

12.1 ... Creating a Request for Quotation ... 255
... 12.1.1 ... RFQ Type ... 256
... 12.1.2 ... RFQ Date ... 257
... 12.1.3 ... Quotation Deadline ... 257
... 12.1.4 ... RFQ Document Number ... 257
... 12.1.5 ... Organizational Data ... 257
... 12.1.6 ... Default Data for Items ... 257
... 12.1.7 ... Collective Number ... 258
... 12.1.8 ... Validity Start/Validity End ... 259
... 12.1.9 ... Application By ... 259
... 12.1.10 ... Binding Period ... 259
... 12.1.11 ... Reference Data ... 259
... 12.1.12 ... RFQ Item Detail ... 260
... 12.1.13 ... RFQ Delivery Schedule ... 260
... 12.1.14 ... Additional Data ... 261
... 12.1.15 ... Vendor Selection ... 262
12.2 ... Changing a Request for Quotation ... 263
12.3 ... Releasing an RFQ ... 265
... 12.3.1 ... Release Code/Release Group/Release Strategy ... 266
... 12.3.2 ... Set Release/Cancel Release ... 266
... 12.3.3 ... Release Prerequisite Fulfilled ... 266
... 12.3.4 ... List With items ... 266
... 12.3.5 ... Scope of List ... 266
... 12.3.6 ... Purchasing Document Category ... 267
... 12.3.7 ... Other Selection Criteria ... 267
12.4 ... Issuing a Request for Quotation to a Vendor ... 267
13 ... Quotation ... 269

13.1 ... Entering a Quotation ... 269
13.2 ... Comparing Quotations ... 270
... 13.2.1 ... Price Comparison Factor in Quotations ... 271
... 13.2.2 ... Other Qualitative Factors in Quotations ... 273
13.3 ... Rejecting Quotations ... 274
... 13.3.1 ... Flagging the Quotation as Rejected ... 274
... 13.3.2 ... Printing the Quotation Rejection ... 275
... 13.3.3 ... Advising Unsuccessful Bidders ... 275
14 ... Purchase Order ... 277

14.1 ... Create a Purchase Order ... 277
... 14.1.1 ... Create a Purchase Order with Vendor Known. ... 277
... 14.1.2 ... Create a Purchase Order Where Vendor is Unknown ... 279
14.2 ... Maintaining a Purchase Order ... 280
14.3 ... Blocking and Canceling a Purchase Order ... 281
... 14.3.1 ... Block a Purchase Order Line Item ... 281
... 14.3.2 ... Canceling a Purchase Order Line Item ... 281
14.4 ... Account Assignment in a Purchase Order ... 282
... 14.4.1 ... Account Assignment Overview ... 282
... 14.4.2 ... Account Assignment Categories ... 282
... 14.4.3 ... Single Account Assignment ... 284
... 14.4.4 ... Multiple Account Assignment ... 285
14.5 ... Outline Purchase Agreement pause ... 286
... 14.5.1 ... Outline Purchase Agreement Overview ... 286
... 14.5.2 ... Outline Purchase Agreement Types ... 286
14.6 ... Scheduling Agreement ... 287
... 14.6.1 ... Scheduling Agreement Overview ... 287
... 14.6.2 ... Create a Scheduling Agreement Manually ... 287
... 14.6.3 ... Create a Scheduling Agreement with Reference ... 289
14.7 ... Contracts ... 290
... 14.7.1 ... Contract Overview ... 290
... 14.7.2 ... Centrally Agreed Contract ... 291
... 14.7.3 ... Creating a Contract ... 291
... 14.7.4 ... Release Order Against a Contract ... 293
14.8 ... Vendor Confirmation ... 294
... 14.8.1 ... Vendor Confirmation Overview ... 294
... 14.8.2 ... Confirmation Configuration ... 295
... 14.8.3 ... Enter a Manual Confirmation ... 296
14.9 ... Messages and Outputs ... 297
... 14.9.1 ... Message Overview ... 297
... 14.9.2 ... Message Creation ... 298
... 14.9.3 ... Message Output Definition ... 298
... 14.9.4 ... Output Messages ... 299
14.10 ... Reporting ... 300
... 14.10.1 ... Reporting Overview ... 300
14.11 ... Release Procedures ... 300
... 14.11.1 ... Introduction to Release Procedures ... 300
... 14.11.2 ... Release with Classification for a Purchase Requisition ... 301
15 ... External Service Management (ESM) ... 303

15.1 ... Service Master Record ... 303
... 15.1.1 ... Service Number ... 303
... 15.1.2 ... Service Category ... 303
... 15.1.3 ... Material/Service Group ... 305
... 15.1.4 ... Tax Indicator ... 305
... 15.1.5 ... Valuation Class ... 305
... 15.1.6 ... Formula ... 305
... 15.1.7 ... Graphic ... 306
15.2 ... Standard Service Catalog (SSC) ... 307
... 15.2.1 ... Overview ... 307
... 15.2.2 ... Creating a SSC Entry ... 307
15.3 ... Conditions in ESM ... 308
... 15.3.1 ... Total Price Condition ... 309
15.4 ... Procurement of Services ... 310
... 15.4.1 ... Using a Purchase Order ... 310
15.5 ... Entry of Services ... 312
... 15.5.1 ... Service Entry Sheet ... 312
15.6 ... Blanket Purchase Order ... 314
... 15.6.1 ... Creating a Blanket Purchase Order ... 314
16 ... Consumption-Based Planning ... 317

16.1 ... Master Data in CBP ... 317
... 16.1.1 ... Material Master Record ... 317
... 16.1.2 ... Planning Calendar ... 318
16.2 ... Planning Process ... 320
... 16.2.1 ... Planning at the Plant Level ... 320
... 16.2.2 ... Planning at the Storage Location Level ... 320
16.3 ... Planning Evaluation ... 322
... 16.3.1 ... MRP List ... 322
... 16.3.2 ... Stock/Requirements List ... 323
16.4 ... Procurement Proposal ... 324
... 16.4.1 ... Purchase Requisitions ... 324
... 16.4.2 ... Schedule Lines ... 325
... 16.4.3 ... Planned Orders ... 325
17 ... Material Requirements Planning ... 327

17.1 ... Reorder Point Planning ... 327
... 17.1.1 ... Manual Reorder Point Planning ... 327
... 17.1.2 ... Automatic Reorder Point Planning ... 328
17.2 ... Forecast-Based Planning ... 329
17.3 ... Time-Phased Planning ... 330
18 ... Forecasting ... 333

18.1 ... Forecast Models ... 333
... 18.1.1 ... Constant Model ... 334
... 18.1.2 ... Trend Model ... 334
... 18.1.3 ... Seasonal Model ... 334
... 18.1.4 ... Seasonal Trend Model ... 334
18.2 ... Forecast Parameters ... 335
... 18.2.1 ... Create Forecast Profile ... 335
18.3 ... Forecast Options ... 338
... 18.3.1 ... Manual Forecast Model Selection ... 339
... 18.3.2 ... Automatic Forecast Model Selection ... 339
19 ... Inventory Management Overview ... 341

19.1 ... Goods Movements ... 342
... 19.1.1 ... Material Document ... 342
... 19.1.2 ... Movement Types ... 343
19.2 ... Goods Issue ... 345
19.3 ... Goods Receipt ... 345
19.4 ... Physical Inventory ... 345
19.5 ... Returns ... 346
... 19.5.1 ... Introduction to Returns ... 346
... 19.5.2 ... Creating a Return ... 346
... 19.5.3 ... Configuring Reason for Movement ... 347
... 19.5.4 ... Material Documents ... 349
19.6 ... Reservations ... 351
... 19.6.1 ... Introduction to Reservations ... 351
... 19.6.2 ... Creating a Manual Reservation ... 351
... 19.6.3 ... MRP and Reservations ... 353
... 19.6.4 ... Reservations Management Program ... 354
19.7 ... Stock Transfers ... 356
... 19.7.1 ... Stock Transfer and Transfer Posting ... 356
... 19.7.2 ... Transfer Between Storage Locations ... 357
... 19.7.3 ... Transfer Between Plants ... 359
... 19.7.4 ... Transfer between Company Codes ... 360
20 ... Goods Issue ... 361

20.1 ... Goods Issue to a Production Order ... 361
... 20.1.1 ... Planned Goods Issue ... 361
... 20.1.2 ... Unplanned Goods Issue ... 363
... 20.1.3 ... Backflushing ... 364
20.2 ... Goods Issue to Scrap ... 365
20.3 ... Goods Issue for Sampling ... 366
20.4 ... Goods Issue Posting ... 367
... 20.4.1 ... Material Document ... 367
... 20.4.2 ... Accounting Document ... 367
... 20.4.3 ... Goods Issue Slip ... 367
... 20.4.4 ... Stock Changes ... 368
... 20.4.5 ... General Ledger Account Changes ... 369
20.5 ... Goods Issue Reversal ... 369
... 20.5.1 ... Goods Issue Reversal with Reference to a Material Document .. 369
... 20.5.2 ... Goods Issue Reversal with Reference to a Reservation ... 370
21 ... Goods Receipt ... 373

21.1 ... Goods Receipt for a Purchase Order ... 373
... 21.1.1 ... Goods Receipt Where Purchase Order Number is Known ... 373
... 21.1.2 ... Goods Receipt Where Purchase Order Number is Unknown ... 375
... 21.1.3 ... Goods Receipt Posting ... 376
21.2 ... Goods Receipt for a Production Order ... 377
21.3 ... Initial Entry of Inventory ... 379
21.4 ... Other Goods Receipts ... 380
... 21.4.1 ... Goods Receipt Without a Production Order ... 380
... 21.4.2 ... Goods Receipt of By- products ... 381
... 21.4.3 ... Goods Receipt for Free Goods ... 382
22 ... Physical Inventory ... 383

22.1 ... Physical Inventory Preparation ... 383
... 22.1.1 ... Preparations for a Physical Inventory Count ... 384
... 22.1.2 ... Creating the Physical Inventory Count Document ... 384
... 22.1.3 ... Printing the Physical Inventory Count Documents ... 386
22.2 ... Counting and Recounts ... 387
... 22.2.1 ... Entering the Count ... 387
... 22.2.2 ... Difference List ... 388
... 22.2.3 ... Missing Material ... 389
... 22.2.4 ... Recounts ... 389
22.3 ... Physical Inventory Posting ... 390
... 22.3.1 ... Posting the Count Document ... 390
... 22.3.2 ... Posting a Count Without a Document ... 391
... 22.3.3 ... Accounting of Inventory Differences ... 393
23 ... Invoice Verification ... 395

23.1 ... Standard Three-Way Match ... 395
... 23.1.1 ... Entering an Invoice ... 395
... 23.1.2 ... Simulate Posting ... 397
... 23.1.3 ... Invoice Posting ... 398
23.2 ... Evaluated Receipt Settlement (ERS) ... 398
... 23.2.1 ... Benefits of ERS ... 398
... 23.2.2 ... Running the Evaluated Receipt Settlement ... 399
23.3 ... Document Parking ... 400
... 23.3.1 ... Document Parking Overview ... 400
... 23.3.2 ... Benefits of Document Parking ... 400
... 23.3.3 ... Parking an Invoice ... 401
23.4 ... Variances and Blocking Invoices ... 401
... 23.4.1 ... Variances ... 401
... 23.4.2 ... Tolerance Limits ... 402
... 23.4.3 ... Blocking Invoices ... 404
... 23.4.4 ... Manual Block ... 404
... 23.4.5 ... Stochastic or Random Block ... 405
... 23.4.6 ... Block due to Amount of an Invoice Item ... 407
... 23.4.7 ... Block due to Variance of an Invoice Item ... 408
23.5 ... Releasing Invoices ... 409
... 23.5.1 ... Releasing Invoices Automatically ... 409
24 ... Balance Sheet Valuation ... 411

24.1 ... LIFO Valuation ... 411
... 24.1.1 ... Configuration for LIFO ... 412
... 24.1.2 ... Preparation for LIFO ... 413
... 24.1.3 ... Running a LIFO Valuation ... 415
24.2 ... FIFO Valuation ... 416
... 24.2.1 ... Configuration for FIFO ... 416
... 24.2.2 ... Preparation for FIFO ... 417
... 24.2.3 ... Running a FIFO Valuation ... 417
24.3 ... Lowest Value Determination ... 419
... 24.3.1 ... Lowest Value Determination Based on Market Prices ... 419
... 24.3.2 ... Lowest Value Determination Based on Range of Coverage ... 421
... 24.3.3 ... Lowest Value Determination Based on Movement Rate ... 422
25 ... Material Ledger ... 425

25.1 ... Material Ledger Overview ... 425
... 25.1.1 ... Activating the Material Ledger and Actual Costing ... 425
25.2 ... Material Ledger Data ... 426
... 25.2.1 ... Material Master Record ... 426
... 25.2.2 ... Data for the Material Ledger ... 427
25.3 ... Material Price Determination ... 428
... 25.3.1 ... Material Price Analysis ... 428
... 25.3.2 ... Single-Level Material Price Determination ... 429
... 25.3.3 ... Multi-Level Material Price Determination ... 430
... 25.3.4 ... Transaction-Based Material Price Determination ... 430
26 ... Classification System ... 433

26.1 ... Classification Overview ... 433
... 26.1.1 ... What is a Classification System? ... 433
... 26.1.2 ... Describing an Object ... 434
26.2 ... Characteristics ... 434
... 26.2.1 ... Create Characteristics ... 434
... 26.2.2 ... Configuring Characteristics ... 436
26.3 ... Classes ... 438
... 26.3.1 ... Create Classes ... 438
26.4 ... Class Type ... 439
... 26.4.1 ... Class Type Overview ... 439
... 26.4.2 ... Configuring a Class Type ... 440
26.5 ... Class Hierarchies ... 442
... 26.5.1 ... Creating a Class Hierarchy ... 442
... 26.5.2 ... Inherited Characteristics ... 443
26.6 ... Object Dependencies ... 443
... 26.6.1 ... Object Dependency Overview ... 443
... 26.6.2 ... Dependency Creation ... 444
26.7 ... Finding Objects Using Classification ... 444
... 26.7.1 ... Classifying Materials ... 444
... 26.7.2 ... Classifying Objects ... 446
... 26.7.3 ... Finding Objects ... 447
27 ... Document Management ... 449

27.1 ... Document Management Overview ... 449
27.2 ... Document Information Record ... 449
... 27.2.1 ... Document Number ... 449
... 27.2.2 ... Document Type ... 450
... 27.2.3 ... Document Part ... 451
... 27.2.4 ... Document Version ... 451
... 27.2.5 ... Document Status ... 451
27.3 ... Creating a Document ... 452
... 27.3.1 ... Create a Document ... 452
27.4 ... Linking an Object to a Document ... 453
... 27.4.1 ... Configuration for Linking Documents ... 453
... 27.4.2 ... Linking a Document to a Material Master Record ... 453
... 27.4.3 ... Linking a Document to a Vendor Master Record ... 454
27.5 ... Documents and Classification ... 455
... 27.5.1 ... Using Classification for Documents ... 455
A ... Bibliography ... 457

B ... Glossary ... 459

C ... About the Author ... 465

Index ... 467

Martin Murray has worked with SAP since 1990 and is experienced in all aspects of MM and WM functionality. He is the author of the best-selling SAP PRESS book SAP MM: Functionality and Technical Configuration, and of Understanding the SAP Logistics Information System.