PLM114

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PLM114

Basic Data for Manufacturing and

Product Management

mySAP Product Lifecycle Management

Date

Training Center Instructors

Education Website

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About This Handbook

This handbook is intended to complement the instructor-led presentation of this course, and serve as a source of reference. It is not suitable for self-study.

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Course Overview

This course will educate participants on how master data and organizational data is maintained in SAP ERP. Participants will learn how to create, manage, report and configure the master data objects that are relevant to the production planning process. This will include:

• Plants

• Storage Locations • Material Masters • Bills of Materials • Work Centers

• Task Lists and Routings

Target Audience

This course is intended for the following audiences:

• Project team members and employees responsible for configuring, creating, and maintaining the follow master data objects in SAP

– Plants – Storage Locations – Material Masters – Bills of Material – Work Centers – Task List/Routings

Course Prerequisites

Required Knowledge

• Basic understanding of Supply Chain Management in SAP ERP

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Course Goals

This course will prepare you to:

• Explain the organizational structures and basic data in Manufacturing and Planning

• Describe the manufacturing functions that support materials and bills of materials

• Describe the manufacturing functions that support work centers and routings • Participate in configuration decisions that ensure that SAP R/3 supports

company requirements

• Describe some of the advanced modeling features in manufacturing and planning using Bills of Materials and Task lists.

• Describe the features of the Engineering Work Bench

Course Objectives

After completing this course, you will be able to: • Maintain material masters and bills of materials • Maintain routings and work centers

• Assign material components to operations • Managed updates to various master data objects • Execute reports on various master data objects

• Model various manufacturing options in the bill of material and routing • Maintain master data using the engineering work bench

SAP Software Component Information

The information in this course pertains to the following SAP Software Components and releases:

• ECC 5.0

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Unit 1

Overview of Master Data for Product

Management and Manufacturing

Unit Overview

This unit introduces you to how master data will be used in supporting the SAP ERP production planning and execution process. The different master data and organizational data are discused at a summary level. Each object will be covered in more detail in following lessons.

Unit Objectives

After completing this unit, you will be able to:

• Describe the types of data used in modeling and executing manufacturing in SAP ERP

• Identify the production planning organizational units (configuration) • Identify the procurement organizational units

• Identify the Sales and Distribution organizational units • Identify the production planning master data objects

Unit Contents

Lesson: Types of Data in SAP ERP ...2 Procedure: Configuring SAP ERP ...4 Lesson: Use of Organizational Data and Master Data in Production ...7

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Lesson: Types of Data in SAP ERP

Lesson Overview

In this lesson we will discuss the different types of data that users and project team members will deal with during an implementation and after go live.

Lesson Objectives

After completing this lesson, you will be able to:

Business Example

Your company, Precision Pumps, has just purchased SAP ERP to efficiently run your business. As a member of the project team in a company that manufactures pumps, you are responsible for the introduction of basic data for manufacturing. The defined basic data will be used in the procurement, scheduling, manufacturing, and costing of all components and products necessary for the manufacturing of pumps. You must introduce the basic concepts of configuration in SAP ERP, as well as master data and organization data.

Data Types in SAP ERP

When dealing with a software system as robust as SAP ERP, you need to have perspective on how your business will be modeled in a software environment. In SAP ERP, users will have essentially three types of data:

• Configuration data • Master data • Transactional data

Configuration Data

Configuration data is often referred to as one-time data. This means that the data should not change, but if it does it will be tracked or controlled.

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PLM114 Lesson: Types of Data in SAP ERP

Figure 1: Configuration in SAP ERP

During an implementation, the SAP ERP landscape will typically consist of three servers: DEV (development), QA (quality assurance), and PROD (production). Each server may have several clients. The DEV server is where a sandbox client will exist, as well as the golden client, where the final configuration resides. During the project, team members will try different iterations of configuration in the sandbox client and test the results. If the results meet the organizations requirements, they are configured again in the golden client. From there, the Basis team moves it to the QA server for further evaluation. The Basis team will us a tool called the Change and Transport System (CTS). This allows them to track the configuration changes from DEV to QA, and QA to PROD.

Once the configuration changes are moved to the QA server, integration testing will take place within the PP module and within the other applications in SAP ERP, such as materials management (MM) and Sales and Distribution (SD), for

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Configuring SAP ERP

1. Enter transaction code SPRO. 2. Select Reference IMG.

3. Choose Production → Basic Data → Bill of Material → Control Data for

Bill of Material → Define Default Parameters.

Master Data in SAP ERP

Configuration will be the foundation upon which most master data will be built. Master data is often referred to as “slowly changing” data. This means the data of a particular object does not change all the time, but often several times a year.

Figure 2: Master Data

Master data in SAP ERP is a centralized function. This means that the data is be intended to be stored once and replication is to be avoided. The master data that will be used for production planning in SAP ERP is as follows:

• Material masters • Bills of material • Work centers • Task lists/routings • Cost centers

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PLM114 Lesson: Types of Data in SAP ERP

Business users will be limited to creating, changing, or displaying data based on their role within the organization. During implementations, each business must determine how the Product Lifecycle Management (PLM) process within SAP ERP will integrate with their specific business processes.

As organizations change, so must the master data to support the business; this needs to be modeled properly within the SAP ERP environment.

Transactional Data

Every day, businesses perform tens of thousands of transactions that make the business function. Some transactions are directly related to outside events with customers or suppliers. Other events are internal to the business and affect the interaction between departments within a business or division.

Figure 3: Transactional Data

Within SAP ERP, all transactional data is related to some form of master data or configuration data. In the world of production planning, you will be executing

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Lesson Summary

You should now be able to:

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PLM114 Lesson: Use of Organizational Data and Master Data in Production

Lesson: Use of Organizational Data and Master Data in

Production

Lesson Overview

In this lesson you will be exposed to organizational data and its potential impact on production planning in SAP ERP.

Lesson Objectives

Business Example

As a member of the project team, you must understand how organizational structures, production planning, and master data are used to develop an organizational plan to support existing and future business.

Organizational Objects in Production Planning

The foundation of the SAP ERP system is the organizational structure that will be configured at the early stages of your company's implementation of the software. All other configuration or master data will be built on top of the organizational structures.

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Figure 4: Organizational Structure

To better understand the structure, you must familiarize your self with several definitions:

Client

The client is a unit within an SAP ERP system that is self-contained both in legal and organizational terms, and in terms of data, with separate master records and an independent set of tables. From a business viewpoint, the client represents a corporate group, for example.

The client is the highest hierarchical level in the SAP ERP system. Specifications or data that you make and enter at this level apply to all company codes and all other organizational units. Therefor, you do not have to enter the specifications and data in the system at client level more than once. This ensures a uniform data status.

Access authorization is assigned on a client-specific basis. A user master record must be created for every user in the client in which he or she wishes to work. If the Client field has not been prepopulated, each user must specify a client key when logging on to an SAP ERP client. The client key is uniquely defined in the system and is a three-digit number. In this way, the user specifies the client in which he or she wishes to work. All user input is stored and separated by client.

The processing and evaluation of data is likewise carried out on a client-specific basis.

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Company code

A company code is the smallest organizational unit of external accounting for which a complete, self-contained bookkeeping system can be replicated. This includes the entry of all events that require posting to the accounts and the creation of a complete audit trail for balance sheets and profit-and-loss statements. A company code represents an independent unit producing its own balance sheet, for example, a company within a corporate group (client). You can set up several company codes in one client in order to keep separate sets of financial books. You can use a special Customizing function to copy a company code. In the process, company-code-dependent specifications are adopted for your new company code.

A company code is defined in the system by means of a four-character alphanumeric key that is unique in the client.

Plant

The plant is an organizational unit within logistics that subdivides an enterprise from the viewpoints of production, procurement, and materials planning.

Storage Location

The storage location is an organizational unit that facilitates the

differentiation of stocks of materials within a plant. Inventory management on a quantity basis is carried out in the plant at storage-location level. The physical inventory is also carried out at this level.

A storage location is defined by means of a four-character alphanumeric key that is unique in the plant.

Organizational units are tightly linked to each other to quickly process the relevant data for a business area. For example:

Plant 1000 is assigned to company code 1000

Company code 1000 is assigned to controlling area 1000 Therefore, whenever a transaction involving cost occurs in plant 1000, the relevant records in controlling area 1000 are automatically updated. The valuation area is the organizational level at which material quantities and values are managed. It is

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Purchasing Organization

Outside of production planning, other areas of the SAP ERP system need additional configuration to support their specific functional needs. In addition to the client and company code requirements, purchasing requires an additional organizational structure.

Figure 5: Purchase Organization

A purchasing group is a key for a buyer or a group of buyers who are responsible for certain purchasing activities. Internally, the purchasing group is responsible for the procurement of a material or class of materials. Externally, it is the principal channel for an enterprise's dealings with its vendors.

Note: The purchasing group is not assigned to other units of the enterprise structure in SAP ERP.

Purchasing groups are not defined in Customizing for the enterprise structure, but in Customizing by choosing Materials Management → Purchasing → Create

Purchasing Groups.

The purchasing organization is an organizational unit within logistics that subdivides the enterprise according to the purchasing requirements. A purchasing organization procures materials or services, negotiates conditions of purchase with vendors, and assumes responsibility for these transactions.

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You can incorporate purchasing into the company structure by assigning the purchasing organization to a company code and to plants. This means that you can take into account whether purchasing is organized on a centralized or decentralized basis in your company. You can have a combination of these two organizational forms.

You can assign several purchasing organizations to one company code. However, a certain purchasing organization can only belong to one company code. You can decide not to assign the purchasing organization to a company code (cross-company-code purchasing). There is an m:n relationship between purchasing organizations and plants. In other words, you can assign several plants to one purchasing organization, and one plant to several purchasing organizations.

Sales Organization

Similar to the purchasing side of an organization, the group responsible for sales has additional unique business requirements.

Figure 6: Sales Organization

The sales organization is responsible for selling and distributing goods and services. It is liable for the products sold and responsible for a customer's rights of recourse. The sales organization can be used to represent a regional, national, or

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A distribution channel is a means through which saleable materials or services reach the customer. A distribution channel is assigned to a sales organization. A sales organization may have more than one distribution channel assigned to it. If the Sales and Distribution module is used, at least one distribution channel must be defined and assigned to a sales organization.

A distribution channel allows customers to be treated differently depending on the channel they are assigned to. For example, a customer assigned to a wholesale distribution channel may receive preferred pricing compared to a retail distribution channel customer.

A sales organization can have several divisions assigned to it, but must have at least one division. A division is used to group materials and services. A division can represent a product group or product line, which allows:

• Restricted price agreements to a certain division • Statistical analysis by division

A sales area is a unique and allowable combination of a sales organization, distribution channel, and division. Each Sales and Distribution document is assigned to exactly one sales area. This assignment cannot be changed. A sales area can belong to only one company code. This relationship is created by the assignment of the sales organization to the company code in Customizing. The shipping point is the organizational element that manages your shipping activities. Each outbound delivery is processed at a shipping point.

A shipping point can be a physical location, for example, a loading dock, a mail room, or a railroad depot. It can also be a logical location, for example, a group of employees responsible for processing next-day deliveries or less-than-truckload orders.

Shipping points are assigned to plants. A shipping point should have physical proximity to the plant to which it is assigned. More than one shipping point can be assigned to a plant. Several plants can also have a shared shipping point assigned to them, for example, several plants in same physical proximity sharing the same railroad depot.

Master Data Objects in Production Planning

Once your company has established an organization structure, the different business areas can proceed with developing the application-specific master data to activate the necessary functionality required to run the day-to-day activities of your business.

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Figure 7: Master Data for Production Planning

Within the PP application, several pieces of master data are required to carry out planning and execution functionality. The following master data objects are required to initiate planning and execution functions in SAP ERP:

• Material master • Bill of material • Work center • Routing/task list

Material Masters

Material Master Record: Definition

The material master contains information on the materials that a company constructs, procures, manufactures, stores, and sells. The information is stored in a database that is a central source of data on materials. The material master record

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Figure 8: Material Masters in SAP ERP

For the company, the material master record represents the central source for data on materials. The material master is used by various SAP logistics applications. The material can be a finished product (product or article), a semi-finished product (subassembly), or a raw material (purchased part).

Bills of Material

A bill of material (BOM) is a complete, formally structured list of the components that make up a product or assembly. The list contains a description and object number for each component, together with the quantity and unit of measure. Bills of material can exist at the plant and/or client level. The header and components all contain validity dates that can be affected using Engineering Change Management.

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Figure 9: Bills of Material In SAP ERP

Bills of material will be integrated with the material master and can be used in conjunction with routing to schedule a more precise usage point. These BOMs are used in material requirements planning, production, procurement, and product costing.

A BOM consists of header material and BOM items (components). The base quantity in the header material specifies the finished production quantity on which the component quantities are based. BOM items indicate individual parts and assemblies, which are identified by their material numbers.

BOMs are single level. A BOM item can also contain components, so that multi-level production can be described by the single-level BOMs from the finished product, assemblies, or assemblies of the assemblies (and so on). In addition to stock items, which flow into the finished product, a BOM can also contain documents or text items.

Work Centers

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Figure 10: Work Centers in SAP ERP

Work centers can be defined as individual or multiple machines, people, tools, and so on. Work centers are used in routings (routings, standard networks, inspection plans, maintenance task lists, and rough-cut planning profiles) and in orders.

Task Lists and Routings

A routing defines operations and the sequence in which they are carried out. The following is also defined in the routing:

• Where the work is to be done • How long the work should take

• What materials are needed for each operation • What tools and fixtures are required

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Figure 11: Routings in SAP ERP

A routing shows operations in a sequence and acts as a template for production orders. Each step defines the work center in which specific work will be accomplished. The planned time for each operation is stored in the routing as a standard value.

These standard values are the basis for: • Lead time scheduling

• Product costing • Capacity planning

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Lesson Summary

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PLM114 Unit Summary

Unit Summary

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Unit 2

Organizational Data in Supply Chain

Management

Unit Overview

In this unit, you will be introduced to how your company's organization structure will be mapped out in SAP ERP. In addition, you will see how this organizational structure will affect your master data structures and maintenance process. Lastly, you will be introduced to the concept of configuration in the SAP ERP Implementation Guide (IMG).

Unit Objectives

After completing this unit, you will be able to: • Describe the purpose of a plant in SAP ERP

• Describe the purpose of a storage location in SAP ERP • Describe the purpose of an MRP area in SAP ERP

Unit Contents

Lesson: Plants ... 22 Procedure: Configuring a Plant... 25 Lesson: Storage Locations ... 27 Procedure: Configuring a Storage Location ... 30 Lesson: MRP Areas ... 32 Procedure: Using MRP Areas ... 35

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Lesson: Plants

Lesson Overview

In this lesson you will learn about plants in relation to the organizational structure and how they are integrated into master data.

Lesson Objectives

After completing this lesson, you will be able to: • Describe the purpose of a plant in SAP ERP

Business Example

Your company currently has many locations where they store and manufacture products. In order to make the most of out of your implementation, you must be aware of how to model various installations in SAP ERP. You want to learn more about how the SAP ERP plant will fit your supply chain model.

Plants in SAP ERP

The plant is a logistics-based organizational element that is used by all the logistics modules. The plant is assigned to a company code, and a company code may have many plants assigned to it. In production planning, the main organizational element is the plant. A plant is typically configured in conjunction with the company code and valuation area due to tax rules and regulations

Figure 12: Definition of a Plant

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PLM114 Lesson: Plants

A plant may be defined for different purposes, depending on the role the plant will have in the organization. In Sales and Distribution, a plant can represent the location from which finished goods materials are stored and distributed. A plant may also be the location from which services are rendered. In materials management, a plant represents a location where material flow is managed. Stock requirements are managed from inbound and outbound perspectives. Material stock is consumed, planned and purchased in the plant. In production, a plant represents a manufacturing facility where materials are produced.

Figure 13: Plant in the Organizational Structure

When creating a new plant, you can use the plant copy function. In the process, all entries in the plant table and all Customizing and system tables that depend on it (and in which the plant occurs as the key) are taken into account. A plant is defined in the system by means of a four-character alphanumeric key that is unique in the client.

Once a plant is configured, it must be assigned to several other organizational elements to assure cross-functional integrations. Here is an example of where the plant will be assigned:

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will split a single location into multiple plants. For example, companies will sell their finished goods to another company immediately after production, while the distribution location belongs to another facility. Both plants may exist in the same geographical location, but remain as two separate plants reporting to two separate company codes.

As mentioned earlier, the plant is the key focal point for production planning. All master data, planning, and execution activities are defined and performed the plant level. Some examples of these dependencies are:

• Calendar • Material master • Bill of material • Work center • Routing

• Planned/production order types • MRP configuration

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PLM114 Lesson: Plants

Configuring a Plant

1. Choose Enterprise Structure → Definition → Logistics-General → Define,

copy, delete, check plant.

2. Choose Define Plant. Select Plant 1000 and choose Details.

3. Select Back twice to the dialog box and select Copy, delete, check plant. 4. Choose Copy Org. Object.

5. Enter1000in Copy From field andP114in Copy To field and choose

Continue (Enter).

6. Once completed, exit to the main menu.

7. Choose Enterprise Structure → Assignment → Logistics-General → Assign

plant to company code.

Review Company code 1000.

Note: Plant P114 has been assigned to company code 1000.

8. Choose Enterprise Structure → Assignment → Logistics-General → Assign

plant to company code.

Review Company code 1000.

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Lesson Summary

• Describe the purpose of a plant in SAP ERP

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PLM114 Lesson: Storage Locations

Lesson: Storage Locations

Lesson Overview

In this lesson you will learn how the storage location is incorporated into the organizational structure and how it impacts master data in production planning.

Lesson Objectives

• Describe the purpose of a storage location in SAP ERP

Business Example

Your company currently has many areas where they store products within a facility. In order to make the most of out of your implementation, you must be aware of how to model areas in SAP ERP. You want to know how the SAP ERP storage location will fit your supply chain model for planning and execution purposes.

Storage Locations in SAP ERP

The storage location is an organizational unit that facilitates the differentiation of stocks of materials within a plant. Inventory management on a quantity basis is carried out in the plant at storage-location level. The physical inventory is also carried out at this level within materials management and Inventory Management.

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The enterprise structure is created through the assignment of organizational levels to each other. A client may therefore contain several company codes. In turn, a company code may contain several plants. However, a plant can only ever belong to one single company code in the SAP system.

Hint: Since the plant key is unique in a client, and a plant can only belong to one company code, by specifying the plant you simultaneously specify the company code.

Several storage locations may be assigned to a plant, but when a certain storage location is assigned to a plant it forms a compound key. Storage locations are defined especially for a plant and are thus assigned to this plant. The storage location key need only be unique within a plant. Within a client, the same key can be used for different storage locations, since when you specify a storage location you always have to specify the plant as well.

Figure 15: Storage Location Address

Note: To create storage locations, in the IMG, choose Enterprise Structure

→ Definition → Materials Management → Maintain Storage Location.

Here you can create a storage location in reference to a plant.

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Upon creating a storage location, you will define a unique four-character value. This value is alphanumeric, so a company could create an exhaustive number of storage locations for each facility. In addition, when creating a storage location, companies have the opportunity to define a different address for each storage location. This may be done for one of several reasons:

• The storage location represents a sub-contractor location where inventory is held.

• The storage location represents a company facility with a different shipping address.

A material can be stored at several storage locations. To store data specific to each storage location, you must create the relevant material master record (or extend an existing material master record) for each storage location. If the material master record already exists, it can be extended to include storage-location-specific data either manually or automatically.

The material master record is automatically extended the first time a goods receipt is posted for the material. All data specific to the storage location is updated in the material master record. The system can be configured in this way in Customizing by choosing Materials Management → Inventory Management and Physical

Inventory → Goods Receipt → Create Storage Location Automatically.

In this step, you specify whether the automatic creation of storage location data is allowed for goods receipts. This is advisable if you want to post a goods receipt without having to maintain the storage location view of the material master record in advance. First, you have to allow automatic creation per plant. You then have to explicitly allow the creation of storage location data for each movement type. The storage location data is only created if the quantity is posted to “standard” storage location stock. It is not created for receipts into a special stock (for example, into sales order stock).

Note: The standard system is set in such a way that the storage location data is created automatically for all types of receipts (goods receipt with or without reference, stock transfers, initial entry of stock balances, reversal of goods issues, and so on).

To manually create storage locations, enter the storage locations for a material master record collectively. This is much less time-consuming than entering the

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Configuring a Storage Location

1. In the IMG, choose Enterprise Structure → Definition → Materials

Management → Maintain Storage Location.

2. Choose Execute.

3. Enter PlantP114and choose Continue.

4. Choose New Entries.

5. Enter the storage location numberOS01and a description ofOFF Site 1.

6. Select the new storage location and select the folder Addresses of Storage

locations twice.

7. Choose new entries, place a1in theNO (sequential address number) field,

and put any address in the fields. 8. Choose Save.

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Lesson Summary

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Lesson: MRP Areas

Lesson Overview

In this lesson we will discuss the concept of MRP areas and how they may be an alternative to creating additional plants in your organizational model.

Lesson Objectives

After completing this lesson, you will be able to: • Describe the purpose of an MRP area in SAP ERP

Business Example

Your company currently has many areas where they store products within a facility. To make the most of out of your implementation, you must be aware of how to model areas in SAP ERP. Often times your company has requirements to keep inventory and demand separate from other areas of the business. You want to know how the SAP ERP MRP area will fit your supply chain model for planning and execution purposes.

MRP Areas in SAP ERP

During the blueprint process of an implementation, when teams are considering the organizational structure, the will have to consider not only financial impacts but those of the logistics planning and execution.

Figure 16: Organizational Structure Overview

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PLM114 Lesson: MRP Areas

In many situations, the logistics side of the business has specific requirements from customers to keep inventory and demand separate from other streams of demand. This may be due to subcontracting requirements or storing spare/service parts separate from the rest of the facility. One option companies have is creating a separate plant, but from a configuration standpoint this requires a lot of overhead and possible maintenance while having no positive financial impact.

MRP areas are not part of the physical organization structure, but can use the storage locations within a plant to break up requirements and inventory during planning.

Figure 17: MRP Areas

MRP areas are defined as part of MRP configuration. There are three types of MRP areas: plant, storage location, and Vendor (subcontractor). We will only focus on the storage location aspect since that can affect the modeling of your organizational structure.

Note: To find MRP Areas in the IMG, choose Production → Materials

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When creating MRP areas, you must specify the MRP area type, plant, and receiving storage location for Type 2 (storage location). Companies have the options of assigning one or more storage locations to each MRP area. Once an MRP area is defined, users must assign material masters to the MRP areas they wish to segregate from the rest of the plant.

Note: When demand is placed at the storage location level – either through sales order, demand management, or via some dependent demand – if the material master is assigned to an MRP area that contains the storage location, all demand and inventory are kept separate from the plant.

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PLM114 Lesson: MRP Areas

Using MRP Areas

1. In the IMG, choose Production → Materials Requirements Planning →

Master Data → MRP Areas → Define MRP Areas.

2. Choose New Entries and enter the data from the table below.

Field Value

MRP Area OS01-P114

Description Out Sided Storage

MRP Area Type 02 - Storage Location

Plant P114

3. Press ENTER.

4. Enter receiving storage locationOS01and choose Save.

5. From the application menu, choose Logistics → Production → Master Data

→ Material Master → Material → Change → immediately.

6. EnterT-F1##and select MRP 1 at Plant 1000.

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Lesson Summary

• Describe the purpose of an MRP area in SAP ERP

Related Information

For more information as it pertains to production planning, see online help or SAP course SCM240.

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PLM114 Unit Summary

Unit Summary

• Describe the purpose of a plant in SAP ERP

• Describe the purpose of a storage location in SAP ERP • Describe the purpose of an MRP area in SAP ERP

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Unit 3

Material Masters

Unit Overview

In this unit you will be introduced to the concept of the SAP ERP material master. You will be instructed on the creation, maintenance, and configuration of the material master. In addition, you will execute various transactions to manage the process surrounding its life cycle.

Unit Objectives

After completing this unit, you will be able to:

• Describe the organizational layout of the material master • List the prerequisites to creating material masters • Use various methods to create material masters

• Describe the request process with interactive forms and explain how it might benefit your business

• Describe how the material master can use classification to include company-specific fields

• Describe how classification can be used for batch management of inventory • Describe how classification can be used for variant configuration

• Describe different ways to update or change the material master • Demonstrate the mass maintenance features of the material master

• Describe how the material master can be updated using the request processes with interactive forms for materials management

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Procedure: Organizational Levels of the Material Master... 45 Lesson: Creating a Material Master ... 47 Exercise 1: Creating Material Masters... 61 Lesson: Classification of the Material Master ... 72 Exercise 2: Material Classification ... 81 Lesson: Managing the Material Master ... 87 Exercise 3: Managing Material Masters ... 95 Lesson: Configuration of the Material Master ...104 Procedure: Setting Up Screen Sequences ... 115 Exercise 4: Material Types, Field Control and Material Status ... 119

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PLM114 Lesson: Overview of the Material Master

Lesson: Overview of the Material Master

Lesson Overview

In this lesson you will learn about the material master at a high level and its purpose in SAP ERP.

Lesson Objectives

• Describe the organizational layout of the material master

Business Example

As the project lead for implementing material master files, you must be aware of the structural design of the objects in SAP ERP. You want to learn how the material master is structured to integrate it with several business areas in your company.

Introduction to the Material Master

The material master contains information on the materials that a company constructs, procures, manufactures, stores, and sells. The information is stored in a database that is a central source of data on materials. The material master record integrates data from different areas of a company.

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For a company, the material master record represents the central source for data on materials, and is used by various SAP logistics applications. The material can be a finished product (product or article), a semi-finished product (subassembly), or a raw material (purchased part).

The material master can be valid for many different areas within the business. All data is maintained in several centralized tables, based on relevance to the particular part of the organizational structure. The material master is used by all SAP R/3 logistics applications. It controls whether a material is purchased, produced, or sold.

Every area of responsibility can have a material master view. Because different user departments in a company work with the same material, and each of these departments wants to store different information on the material, you can subdivide material master data according to the department to which it belongs. Each department then has its own material master record view and is responsible for the data being correct.

The data that you maintain in the following views is used by production planning (PP) functions:

• The basic data view includes general data, such as the material number, material description, base unit of measure, and technical data.

• The classification view contains user-defined class assignments for a material.

• The materials planning view contains plant-specific data used in procurement planning.

• The scheduling view contains plant-specific data used for scheduling materials for production.

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Figure 19: Organizational Levels of the Material Master

Some material data is valid on all organizational levels and other data is only valid for specific levels. So that the material data can be managed centrally in the company without clogging up your data with redundant information, the material master is structured hierarchically, reflecting a company's structure. In SAP ERP, the only elements that directly impact production planning are client, plant, and storage location.

General material data that applies to the whole company is stored on client level. This includes material descriptions, base units of measure, and conversion factors for alternative units of measure. This data is contained in the table MARA. All data that applies to a plant and its assigned storage locations is stored on plant level. Examples of this kind of data are MRP and forecasting data. This data is contained in the table MARC.

All data that applies to a specific storage location is stored on storage location level. This is mainly storage location stock. This data is contained in the table MARD.

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The material master is a linkage of several tables, defined by their relationship to the organizational structure. Several of the main material master tables are: • MARA - Client

• MARC - Plant

• MARD - Storage Location

• EINA/EINE - Purch. Info Record Data • MAKT - Material Descriptions

• MVKE - Sales Data • MLGN - Warehouse Mgmt • MBEW - Material Valuation

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Organizational Levels of the Material Master

1. EnterP-100, and select only the Basic Data 1 view.

2. Select the MRP 1 screen and enter plant1000.

3. Select the Plant data/stor. 1 tab and enter0002.

4. Select the Sales: Sales org .1 tab, enter sales organization1000, press

ENTER, and then select the drop-down for the distribution channel value. Select 10.

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Lesson Summary

• Describe the organizational layout of the material master

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PLM114 Lesson: Creating a Material Master

Lesson: Creating a Material Master

Lesson Overview

In this lesson you will learn about the prerequisites for creating a material master, as well as the various methods of creating a material master.

Lesson Objectives

After completing this lesson, you will be able to: • List the prerequisites to creating material masters • Use various methods to create material masters

• Describe the request process with interactive forms and explain how it might benefit your business

Business Example

As an engineer at Precision Pumps, you are responsible for the creation of material masters in SAP ERP. In doing so, you must learn the various methods of creating a material master. This will include creating a material from scratch, creating a material from an existing material master, and creating a material using profiles and other shortcuts.

Prerequisites for Creating Material Masters

Prior to creating a material master, several pieces of information must be known in order to properly create a material master record in SAP ERP.

The person who creates the first view of each material master record must define: • The material number

• The industry sector • The material type • The unit of measure • The description

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Figure 20: Material Types in SAP ERP

When you create a material master record, you must define material type for the material. The material type determines which business processes (such as sales, production, or purchasing) and functions (use of material in BOM or routing) are allowed for a material. The selection of the material type should not be taken lightly, as a wrong choice can have serious impacts.

The material type is a configurable item and is usually controlled by costing or Inventory Management due to the large impact is has on those areas of an implementation.

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Figure 21: Material Type Configuration

To be able to manage different materials according to the company's standard requirements, materials with the same characteristics are divided into groups and assigned to a material type. Examples of material types are raw materials, semi-finished products, and finished products.

When you create a material master record, the material type determines: • Which departments can maintain the material master record • Whether the material number is assigned internally or externally • Which number range interval the material number comes from • Which screens appear and in which sequence

• Which department-specific data you have to enter

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Figure 22: Industry Sector

The industry sector determines which data fields and screens are available for input during material master maintenance. Industry sector is one of several influencing factors. In the configuration of the material master, industry sector can act as one key in specifying whether a field is required, changeable, display only, or hidden. In addition, industry sector is used in configuration to determine what views and what sequence a user can display the material master.

Note: From within any of the Create, Change, or Display transactions, users can access the Defaults → Industry Sector menu. This transaction is user-specific, and can control the default industry sector as well as hide the industry sector once a default is set.

Figure 23: Material Numbering

Each material has a unique material identification number. You can assign a number externally or internally. If you assign a number externally, you enter the required character string when you create a material master record. If you assign

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a number internally, you do not enter any material number when you create a material master record. Until you save the material master record, the system sets the internal material number in the appropriate field. When you save, the system automatically assigns the next available number.

The type of number assignment that is allowed depends on the material type and is defined in Customizing. First, you have to maintain the number range groups. You then assign the material types to the groups.

Note: Material numbering is defined at the client level.

You can assign an interval to only one group. You can also change the current number of an interval manually.

Figure 24: Storing and Displaying the Material Number

During configuration, your company can decide how to view material masters. The material master field has a maximum of 18 characters. You can configuration a template to provide breaks in the material number, for example, 123-456-789. In addition, if you do not intend to use all 18 characters from the beginning, you can specify whether leading zeros are to be displayed.

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For every material master, a base unit of measure must be assigned. This is referred to as the stock keeping unit or the smallest unit of measure a material has consumed. This field is used client-wide and will impact all plants of any company code that uses this material master.

Figure 25: Units of Measure

In addition to the base unit of measure that the system uses for stock keeping and to execute all its calculations, other departments can use their own units of measure.

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All units of measure in the SAP system that are additional to the base unit of measure are grouped together under the title “alternative units of measure.” The following alternative units of measure are supported:

• Base unit of measure (Basic Data 1): Stock keeping unit. All other units of measure you use are converted to the base unit of measure. If there is no standard formula to convert an alternative unit of measure to the base unit of measure, you must enter the conversion factor for the units of measure in material master maintenance.

• Order unit (Purchasing): Unit of measure used for ordering the material. This is the default unit for purchasing functions.

• Sales unit (Sales: sales org 1): Unit of measure used for selling the material. This is the default unit displayed in the sales order. You can also change this unit in the sales order.

• Production unit (Work Scheduling): Unit of measure to be used in the receipt of production. When you create a production order for a material, and a production unit has been entered in both the material master record and in the routing, the system checks whether the quantity entered in the production order falls within the lot size range in the routing.

• Unit of issue (Work Scheduling/Whse Mgmt 1): Unit of measure for issuing the material from stock. Use this unit for goods issue and stock movement transactions. You can also use this unit for the BOM item quantity.

Note: The design engineering department uses the base unit of measure as a rule.

SAP ERP comes supplied with the ISO (International Organization for Standardization) unit of measure tables. Simple put, SAP ERP already has the conversions from kilograms to pounds. Conversion of other non-dimensional units of measure must be defined. This would include the conversion from pieces to pallets, for example. This is often material-specific and would have to be maintained in the material master tables.

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Figure 26: Unit of Measure Groups

For materials that have similar weight and dimension characteristics, you can group together several units of measure in a unit of measure group and assign the group to a material. For each unit of measure in the group, you can enter the conversion factor to the base unit of measure. You maintain unit of measure groups in Customizing for the material master (Logistics - General).

Caution: The base unit of measure must not be entered in the unit of measure group.

Creating New Materials

When a company needs to create a new material master record, they have to match the process to the SAP ERP transactions. Listed below are several options for creating new material masters

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Create Material Master Record: Transactions • MM01 - Create (general) immediately

• MM11 - Create (general) planned for the future

• MM#1 - Create with special material type immediately (# = R, B, F, I, H, U, N, V, L, S, K, P, W and G)

• CEWB - Engineering workbench

Hint: The engineering workbench (EWB) enables material master records to be created for new BOM items. The material is usually created immediately. It is generally the case that BOM maintenance cannot work with material master records that are only planned.

Note: As soon as a material master record is created with MRP data and a valid MRP type, this material is then automatically included in the planning file, which is extremely important for MRP. When loading the data from a legacy system, the transaction does not create planning file entries.

You can define defaults for certain views, organizational levels, and industry sectors. You can take the dialog boxes for selecting views and organizational levels out of the standard screen sequence. You can hide the industry sector.

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Material Master Record Defaults

To access material master data efficiently, you can: • Predefine the industry sector

• Predefine the selection of views

• Predefine the selection of organization levels

To enable more efficient and accurate entry of MRP/forecast data, you can predefine several MRP/forecast profiles:

• Default values for MRP/forecast data fields • Rules for MRP/forecast data field input

In certain companies, not all views of the material master are created immediately. This may require having new views of existing material masters created. This can be accomplished with the following transactions:

• MM01 - Create (general) immediately

• MM11 - Create (general) planned for the future

• MM#1 - Create with special material type immediately (# = R, B, F, I, H, U, N, V, L, S, K, P, W and G)

• CEWB - Engineering workbench

• MM17 - Create new data records (views) immediately in mass maintenance • MM50 - Create new views for extendable materials

Hint: The above comments on the engineering workbenchalso apply here. Ensure that when using MM#1 transactions, the material type of the existing material master record is appropriate for the transaction. This is not important for transactions MM01 and MM11, as the system reads the material type from the material master and, in doing so, overwrites any data entries.

Creating a Material Using MRP Profiles and MRP

Groups

The MRP profile allows users to set default values for MRP data fields and to determine whether the values can be changed during material master maintenance. If a change is made to a default value in an MRP profile and the field cannot be

changed using material master maintenance, the system automatically changes

the field value in all material masters linked to that specific MRP profile.

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The forecast profile allows users to set default values for forecast data fields and to determine whether the values can be changed during material master maintenance. If a change is made to a default value in a forecast profile and the field cannot be

changed using material master maintenance, the system automatically changes

the field value in all material masters linked to that specific forecast profile. In addition to the MRP profile, users creating MRP views can use and assign MRP group to the material in the material master (MRP 1 view). The MRP group is defined in configuration under the MRP section. It is used to apply field values to a large number of materials.

Caution: When using MRP groups, be aware that the field values do not appear in the material master. This is different from the MRP profile.

Creating Material Masters Using Request Processes

with Interactive Forms

In most organizations, one of the major obstacles is defining and managing a process for creating master data. A huge range of forms are used on a daily basis in all types of business, especially for processing requests and approvals. Using paper forms for such processes is singularly inefficient. Delivery and submission is very time-intensive, and usually requires direct contact with an employee. Under such conditions it is difficult for the managers responsible to follow the progress of a process.

As of SAP ERP ECC (2004), a new function called Interactive Forms is available for Product Lifecycle Management (PLM) . This new functionality enables you to complete the processing of products and materials considerably more efficiently, as well as to implement company-specific standards for quality throughout the course of the process.

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Figure 28: Creating Master Data with Interactive Forms

With the help of Interactive Forms, you can compile required product and material data offline, and then enter it into the SAP system when the manager provides their approval. You can process the following interactive forms:

• Request: New Product (physical form) • Request: Product Change (physical form)

The electronic forms contain data on the person who makes the request and the reason for it. Additional process-specific data is added by experts, for example: important product or material data in the New Product request form, or whether stock data should be considered in the change process in the Product Change request form. The data is presented clearly, tailored to the area of responsibility of the employee, and supplemented with notes explaining the process.

You process the forms in standardized processes that are defined in the process template. The temporal and logical sequence of the processing steps is linked to the evaluation of conditions. For example, the data required for a particular step must be complete and correct before the subsequent step can be started. The employees responsible, such as the person who makes the request, experts, and managers, are automatically integrated in the separate process steps. Although the employee processes the form offline, information is available from the SAP system.

For example, the employee can use the input help for entering system data, and the entries are checked for validity. The manager is notified that the request form needs approval through the Control Center of the Guided Procedures component

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in the materials management service directory. This is where the manager either approves the data for entry in the SAP system, or rejects it and initiates a notification to the person who made the request.

The design of the forms, as well as the processes, have been modeled with the functions of the Guided Procedures component (Web Application Server (WAS) →

Composite Application Framework (CAF) ® → Guided Procedures (CAF-GP)).

The following overview includes information about where you can find the documentation for the Guided Procedures (CAF-GP) component.

• Documentation for the application, with information on software requirements:

SAP Library at http://help.sap.com/: SAP NetWeaver → Composite

Application Framework (CAF)→ Guided Procedures (CAF-GP).

• Installation guide: SAP Service Marketplace at http://service.sap.com/in-stguides: Installation and Upgrade Guides → SAP xEPM 1.0 Installation

and Configuration Guide.

Simulation: New Product Request (from RTK-ERP)

View the following simulation to learn more about this lesson:

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Exercise 1: Creating Material Masters

Exercise Objectives

After completing this exercise, you will be able to:

• Create defaults to be used with creation of material masters • Create a material master without any template data

• Create a material master using Copy From functionality

Business Example

As the product development engineer, you are responsible for controlling the management of the material master in your company. To start this process, you need to understand the different ways that a material master can be created. You want to find out which method matches with your business process.

Task 1: User Defaults

In the role of an engineer, you are tasked with creating large quantities of material masters. To make the process run more efficiently, you will use default values and MRP profiles to expedite the creation of material masters. Set your organizational level, industry sector, and view defaults as instructed below. Once completed, set up an MRP profile to populate many of the required fields in the MRP 1 - 4 views. 1. Your company has decided not to use the industry sector functionality.

Therefore, set your user's default for the industry sector to Mechanical Engineering, and only display industry sector on request.

2. Your recent position will only have you creating materials for a certain section of the company. Therefore, set your user's default for the

organizational values Plant 1000, Sales Organization 1000 and Distribution

Channel 10, and only display organizational levels on request.

3. Your recent position will only have you creating materials for a certain business areas within the company. Therefore, set your user's default for the material master views for which you are responsible for creating. Set Basic

Data 1, MRP 1 - 4, Work Scheduling, Accounting 1, and Costing, to always

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Create an MRP profile, SF##, with the description Semi Finished Group ## for use in creating material masters with the material type Semi-Finished Product. Use the parameters in the following table for this exercise.

Note: Solution steps will appear after the table in the Solutions section.

Data of MRP profile SF##

Field Name Maintenance Strategy Default Value MRP Type Fixed value PD MRP controller Default 0##

ABC Indicator Fixed value A = important material In-house production time Default 5 days Scheduling margin key Default 002

Lot Size (Materials Planning)

Fixed value

EX = exact

Purchasing group Default 000

Planning time fence Default 10 days

Component scrap in % Default 1 % Indicator: Backflush Fixed value

2 = work center decides

Task 2: Creating Material Masters

As a design engineer, you will be required to create material masters every day. You will use the defaults created in the previous task to speed up the process. In this section, you will be required to create five material masters. This will include two finished products and three semi-finished products.

1. Your supervisor has given you the specs on a new pump that has just come out of research and development. She has asked you to enter the material master into the system so that one of your colleagues can begin building the bill of material. No material currently has the same attributes, so you will

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