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MM processes


Dear Gurus,

What is the Complete Documentation of MM processes, how to configure what is the steps pls help any
documents related to this pls share with me to "

Thanking you


Reddy KS


April 25, 2011 at 13:31 PM



Naveen Bathini ( July 05, 2007 at 16:01 PM

Dear Reddy KS,

Best Practices Guide:

Visit the follwing thread:

New to Materials Management / Warehouse Management? (/discussions/thread


MM Configuration:

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MM processes

Maintain Plant

Plant 0001 is the SAP default.

OX14 - Define Valuation Area (Tick one only- Once your system go live, no more

Most company take the SAP recommended choice - Value Material Stock at
Plant level

Value Material Stock at Plant or Company Level

If you valuate material stocks at plant level, the plant is the valuation area.

If you valuate material stocks at company code level, the company code is the
valuation area.

The decision you make applies to the whole client.

OX10 - Create / Change / View Plants

OVXB - Create / Change / View Division

OX18 - Assign Plant to company code

e.g. 0001 - 0001 - All Plants

Px1 - Plant Px1

Px2 - Plant Px2

OX19 - Assignment of company code to the Controlling Area

OB38 - Assign company code to Credit Control Area

OMJ7 - Assign business area to Plant/Valuation area and division

e.g. Plant Px1 - Business Area Bx1


Assign Valuation area to the Business Area

.e.g. Valuation area Vx1 - Business Area Bx1

Business Area Bx2

OMS0 - Assign Factory Calendar to the Plant and Business Area

The plant plays an important role in the following areas:

Material Valuation - If the valuation level is the plant, the material stocks are
valuated at plant level. Each plant can have its own material prices and account

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Inventory Management - The material stocks are managed within a plant.

MRP - Material requirements are planned for each plant. Each plant has its own
MRP data. Analyses for materials planning can be made across plants.

Production - Each plant having they own production/planning.

Costing - In costing, valuation prices are defined only within a plant.

Plant Maintenance - If a plant performs plant maintenance planning tasks, it is

defined as a maintenance planning plant. A maintenance planning plant can also
carry out planning tasks for other plants (maintenance plants).

If you want to use the application PP (production planning) or product costing

and job-order costing, you must set valuation at plant level.

The valuation level that you choose affects

the maintenance of material master records

the G/L accounts in which material stocks are managed

the G/L accounts to which transactions are posted in Materials Management

Effect on the maintenance of material master records:

Depending on the valuation level chosen,

you maintain accounting data in the material master record for each plant or for
each company code

you define a valuation price for the material in each plant or in each company

Effect on G/L accounts:

If material stocks are valuated at company code level, all plant stocks of a
material are managed in a joint stock account for each company code.

If material stocks are valuated at plant level, you can manage the material
stocks for each plant in different accounts. For each plant, you can define a
separate determination.

If several plants are to use account determination, you can group these plants in
"Valuation and Account Assignment" Customizing.

Material Master - Introduction

The material master is the starting point for the rest of the modules.

What Material Types are there?

The material types that you use are configured in Customizing for the Material
Master under

Logistics Master Data : Material Master -> Material -> Control data -> Define
material type attributes.

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The following list shows you the material types contained, for example, in the
standard SAP R/3 System, and what their different roles are:

DIEN (services)

Services are procured externally and cannot be stored. A material master record
of this material type can always contain purchasing data.

FERT (finished products)

Finished products are produced by the company itself. Since they cannot be
ordered by Purchasing, a material master record of this material type does not
contain purchasing data.

FHMI (production resources/tools)

Production resources/tools are procured externally and used in the manufacture

of products. A material master record of this material type can contain
purchasing data, but no sales data. It is managed on a quantity basis. Examples
of production resources/tools are apparatus, equipment, and measuring and
testing devices.

HALB (semifinished products)

Semifinished products can be procured externally (sub-contracting) as well as

manufactured in-house. They are then processed by the company. A material
master record of this material type can contain both purchasing and work
scheduling data.

HAWA (trading goods)

Trading goods are always procured externally and then sold. A material master
record of this material type can contain purchasing and sales data.

HIBE (operating supplies)

Operating supplies are procured externally and required for the manufacture of
other products. A material master record of this material type can contain
purchasing data but no sales data.

NLAG (non-stock material)

Non-stock material is material that is not held in stock because it is consumed

immediately. (Office supplies such as stationary. You need to create purchase
order and accounting document for payment but the stock balance is always
zero as it is issued out immediately to the various department.)

ROH (raw materials)

Raw materials are always procured externally and then processed. Since raw
materials cannot be sold, a material master record of this material type contains
no sales data.

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UNBW (non-valuated materials)

Non-valuated materials are managed on a quantity basis, but not by value.

VERP (packaging materials)

Packaging materials are used to transport goods and come with the goods free
of charge. A material master record of this material type is managed both on a
quantity basis and by value.

WETT (competitive products)

Competitive products have their own material master records created from the
Basic Data view. The competitor's number, which is stored in the material master
record, assigns the material to a particular competitor.

Maintain the Material Type

OMS2 - Material Type Maintenance - Create/Change/Display


transaction OMS2

click Change

key in the Material Type you want to change e.g. FERT then hit enter

The Views belows allows you to choose the Views for each Material Type.

(Press the Page up/Page Down keys to scroll the views)

If you tried to change from FERT to HAWA in 4.6x, you will receive an error
message :-

The material type cannot be changed. This is not allowed if only external
procurement is defined for the new material type, or if the new material type has
a different account category reference than the old material type.

To overcome it, goto OMS2 and change the HAWA material type.

In the Internal/external purchase orders sections:

Original Changes

Ext. purchase orders 2 1

Int. purchase orders 0 1

Screens in Material Master

MM01 - Create, MM02 - Change, MM03 - Display and MM06 - Flag for deletion.

MM04 - Display the changes done to the material master.

MMAM - Change the Material Type. for e.g. from FERT to HALB

Configure the Material Master Screen MM01 / MM02 / MM03

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OMSR - Assign the field to the field group

OMS9 - Maintain the data screen field

Unit of Measure

In the material master, there is a Units of measure button for users to store in the
different conversion rate. This sample program (ZUNT) extract the data from the
unit of measure conversion table.

In the Material Master the moving average price are affected by:-

Goods Receipt for Purchase Orders

Transfer from Plant to Plant

Invoice Receipt


Price Change

Common configuration changes-

define new material group (OMSF)

define new valuation class (OMSK) and automatic posting (OBYC)

define new material account assignment group (transaction OVK5) and

Customer/Material/Account keys (transaction VKOA)

Block materials from inventory posting

After blocking, when the user do a inventory posting, they will get this error
message :-

E: Material xxxxx has status Blocked for procmnt/whse

To activate the blocking :-

Goto transaction MM02 - Purchasing View

Type in 01 at the MM/PP status field and save it

Create Delivery Log - Material xxx is blocked

During the Create Delivery (VL01), SAP prompt you a log that Material xxx is

During the Sales Order Create/Change for that material, there might be some
update termination that causes the locked of the material (Windows hanged or
power failure).

You can check using transaction SM12 - type an "*" at the User name field.

Check whether the material is in the locked list.

If it is in the locked list, asked the user to log out before you delete it from the

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locked list.

Maintain Storage Location

MMSC - Collective entry of Storage Location for a material.

Insert new or delete un-used Storage Location.

Maintain whether the storage location was included or excluded from MRP run.

Block Storage Location from further posting

1. You can block the storage location of a material without affecting the rest of
the location using the same material.

Create a Physical Inventory document for the storage location with transaction

Select the Posting Block checkbox.

This would prevent transactions from occuring until you either post or delete the
physical inventory document.

(There are no impact, unless you do a post difference for the physical inventory

2. Another method is to rename the storage location name.

Go to transaction OX09

Edit -> Copy as (copy the original storage location to a new name, replacing the
first character e.g. ZXXX)

Edit -> Delete (delete the original storage location)

Do the reverse if you want back the original storage location.

Accounting document number range for MM

Transaction OMW9

Document Type - Double click on desire transaction code to check the document
type for number range.

(e.g. MR21 Document type - PR)

Financial accounting document type - Assign the document type to a number

range and account type.

(e.g. PR - Account type allowed for posting will be MS)

Double click on the document type PR.

Assign an unique starting number range that was not used. e.g. 88

Choose the Account type for Material and G/L account (MS)

The rest of the fields are optional (you can leave it as blank)

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SAP definitions for account type -

A - Assets

D - Customers

K - Vendors

M - Material

S - G/L accounts

Number ranges for financial accounting document type - Assign the number
range to the running number range.

No. Year (till) From number To number Current number Ext (no tick internal or
tick external)

88 9999 8800000000 8899999999 Track by SAP Blank

Accounting document will be generated if there are stocks during price change,
if you don't have any stocks, no accounting document will be generated as there
are no inventory to revaluate for price differences.

Valuation Class for Material Group

In 4.6x and 4.5b, you can assign valuation class to Material Group.

It is useful in the sense that user do not have to manually do an Account


For stock items, valuation class cannot be changed whenever the stock on hand
is not zero.

Valuation class are tied to a G/L account.

A change of valuation class means a change of G/L account.

In FI concept, you have to debit and credit to balance the G/L account. That is
why your stock must be zero before the system allows you to changed the
valuation class. If it is not zero, you have to either transfer it to another material
or do a dummy issues. After changing the valuation class, do a reversal entries
for the stocks which you have transfer out or you have done a dummy issues.

IMG - Material Management -> Purchasing -> Material Master -> Entry aids for
items without a Material Master

G/L Accounts in MM Account Determination

The program RM07C030 check all the G/L account define in your Material
Master valuation class.

Search is via Company code and Valuation area.

Compare fields status for movement types against General Ledger

Use SA38 then run RM07CUFA

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PR >Release the PR>RFQ>Quotation>Quotation Comparison>PO>Release the

PO>GR>Invoice Verification

MM Process flow:

Process Flow

The typical procurement cycle for a service or material consists of the following

1. Determination of Requirements

Materials requirements are identified either in the user departments or via

materials planning and control. (This can cover both MRP proper and the
demand-based approach to inventory control. The regular checking of stock
levels of materials defined by master records, use of the order-point method,
and forecasting on the basis of past usage are important aspects of the latter.)
You can enter purchase requisitions yourself, or they can be generated
automatically by the materials planning and control system.

2. Source Determination

The Purchasing component helps you identify potential sources of supply based
on past orders and existing longer-term purchase agreements. This speeds the
process of creating requests for quotation (RFQs), which can be sent to vendors
electronically via SAP EDI, if desired.

3. Vendor Selection and Comparison of Quotations

The system is capable of simulating pricing scenarios, allowing you to compare

a number of different quotations. Rejection letters can be sent automatically.

4. Purchase Order Processing

The Purchasing system adopts information from the requisition and the
quotation to help you create a purchase order. As with purchase requisitions,
you can generate Pos yourself or have the system generate them automatically.
Vendor scheduling agreements and contracts (in the SAP System, types of
longer-term purchase agreement) are also supported.

5. Purchase Order Follow-Up

The system checks the reminder periods you have specified and - if necessary -
automatically prints reminders or expediters at the predefined intervals. It also
provides you with an up-to-date status of all purchase requisitions, quotations,
and purchase orders.

6. Goods Receiving and Inventory Management

Goods Receiving personnel can confirm the receipt of goods simply by entering
the Po number. By specifying permissible tolerances, buyers can limit over- and
underdeliveries of ordered goods.

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7. Invoice Verification

The system supports the checking and matching of invoices. The accounts
payable clerk is notified of quantity and price variances because the system has
access to PO and goods receipt data. This speeds the process of auditing and
clearing invoices for payment.

Pur info record is nothing but a master data like thing which will be maintained
for different materials to determine the prices etc.It Specifies the number that
uniquely identifies a record.

For Example: an info record is based on Plant Vendor and Material

Based on these three the Material Prices will be calculated

for different combinations different values are taken into consideration.

During pricing it brings these values automatically based on this info record.

Use ME11 Tcode to create this record.

Common Tables used by SAP MM

Below are few important Common Tables used in Materials Management


EINA Purchasing Info Record- General Data

EINE Purchasing Info Record- Purchasing Organization Data

MAKT Material Descriptions

MARA General Material Data

MARC Plant Data for Material

MARD Storage Location Data for Material

MAST Material to BOM Link

MBEW Material Valuation

MKPF Header- Material Document

MSEG Document Segment- Material

MVER Material Consumption

MVKE Sales Data for materials

RKPF Document Header- Reservation

T023 Mat. groups

T024 Purchasing Groups

T156 Movement Type

T157H Help Texts for Movement Types

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MOFF Lists what views have not been created

A501 Plant/Material

EBAN Purchase Requisition

EBKN Purchase Requisition Account Assignment

EKAB Release Documentation

EKBE History per Purchasing Document

EKET Scheduling Agreement Schedule Lines

EKKN Account Assignment in Purchasing Document

EKKO Purchasing Document Header

EKPO Purchasing Document Item

IKPF Header- Physical Inventory Document

ISEG Physical Inventory Document Items

LFA1 Vendor Master (General section)

LFB1 Vendor Master (Company Code)

NRIV Number range intervals

RESB Reservation/dependent requirements

T161T Texts for Purchasing Document Types


RFQ to Vendor - ME41

Raising Quotation - ME47

Comparison of Price - ME49

Creation of PO - ME21N

Goods Receipt - MIGO

Invoice (Bill PAssing) - MIRO

Goods Issue - MB1A

Physical Inventory - MI01( Create doc)

MI04 (Enter Count)

MI07 (Post)

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check this out

MM flow (/discussions/message/2587232#2587232)

MM flow (/discussions/message/2757752#2757752)

MM flow (/discussions/message/2790858#2790858)




sanjay larokar ( July 06, 2007 at 11:30 AM

12 of 14 5/10/2018, 1:41 PM
MM processes

Dear Reddy,

I m sending u Configuration doc for MM

Kindly check ur yahoo mail account.


sanjay L


vikram suryawanshi (

July 13, 2007 at 23:16 PM

Hi Sanjay , can you please send me the MM
configuration guide.

My email is


Abhinav Royal (

September 13, 2008 at 07:13 AM

Hi Sanjay Pls send me MM configuration doc
on my yahoo id also.

Thanks & Regards

Abhinav Royal


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MM processes

Arif Mansuri ( July 14, 2007 at 00:50 AM

Hello Reddy KS,

Please go through the first thread of this forum which is specially dedicated for
the new guy in MM/WM area.

All guys,

<b>Please DO NOT make this thread LONG by asking configuration document

as it is already available in the first thread of this forum.</b>

Hope this helps.


Arif Mansuri

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