1.

Enterprises Structure Configurations

a. Define, Copy, delete, check plant

b. Define Location

c. Define, Copy, Delete, Check Division

d. Maintain storage locations

e. Maintain Purchasing Organisation

f. Assign plant to company code

g. Assign business area to plant / Valuation area and division

h. Assign purchasing organisation

i. Assign purchasing organisation to plant

2. Maintain company codes for materials management

a. It is similar to posting period variant
b. There are two situations in which you do this:
i. When setting up company codes for materials management
ii. When changing the Allow backposting (ABP) or Disallow backposting (DBP)
indicators
c. To create a material master record, the control record must exist for the company code
for which you want to create your master record.

3. Define Attributes of material types

a. When we create a material master record, we assign a material type to it
b. Material Types are also used in the following areas of configuration
1. Profit Center Accounting
2. Product Cost Planning
3. Sales and Distribution (Availability Check)
4. Valuation and account assignment (Valuation Class)
5. Production
a. BOM
b. Routing
c. You can also maintain the price control for the material type in Customizing for
Valuation and Account Assignment in the activity Define Price Control for Material
Types
d. Fields in Material Types
 1. Configurable material - you can assign a variant class to the material, making it
possible to use it as a configurable material. For example a car can have different
paint, trim and engines.
2. Material Master Record for a Process – this is used when we have a co-products
3. Pipeline Handling Mandatory – Pipeline material are materials which has an
output from continues flow of operations example Potato chips making process
4. Internal Purchase Order – PO raised from inhouse manufacturing goods
5. External Purchase order – PO raised for external procurement
6. The class type is used to define a number of parameters, such as:
a. The objects that can be classified in a class
b. Whether objects of different object types can be classified in the same
class
c. Whether an object can be classified in more than one class of the same
class type
d. The class maintenance screens that can be processed
e. Quantity/Value Update
i. Quantity Updating
ii. Value Update
iii. Pipeline Mandatory
iv. Pipe Allowed

4. Define Material Groups (OMSF)

a. Grouping of material and services according to their characteristics
b. It is used to
1. Limit scope of analysis
2. Systematically search for material master records
3. In SD we assign material groups to division

5. Set Tolerance limits for price variances

a. Tolerance Limits for PO’s

6. Plant Parameters (OM18)

a. All plant parameters for the material requirement planning
b. An overview of the maintenance statutes of the individual parameters on plant level

7. Select Control limits for Goods receipts (OMR6) (OMC0)

a. Tolerance limits for Goods receipts like quantity difference

8. Maintain default tax code (OMR2)

a. If we don’t assign any tax code to an invoice then this default tax code gets picked up
9. Configure vendor specific tolerances
a. Invoice difference with PO and GR
b. How do we calculate the difference PO – Inv. Or Inv. - PO

10. Define automatic status changes

11. Group together valuation areas

12. Valuation class

13. Define MRP controllers

14. Define Schedule margin keys

15. Create purchasing groups

16. Create purchased material masters

17. Creation of GL Accounts for material masters

a. GR / IR Inventory A/c – Liability
b. Finished Goods Stock A/c
c. WIP Stock A/c
d. Raw Material Stock A/c
e. Packing Material Stock A/c
4. 337

Multiple Plants can be assigned to company codes

Valuation grouping code:

1. It customize account determination according to different valuation area

2. It combines several valuation areas for the purpose of account determination
3.