User Exits In MM Area

The following SAP enhancements are available for the Purchasing area:

AMPL0001 - User subscreen for additional AMPL data (manufacturer part number)

LMELA002 - Adoption of batch number from shipping notification at time of posting of a goods receipt

LMELA010 - Incoming shipping notification: adoption of item data from IDoc

LMEQR001 - User exit for source determination

M06B0001 - Role determination for release of requisitions

M06B0001 - Changes to communication structure for release of requisitions

M06B0003 - Number range and document number

M06B0004 - Number range and document number

M06B0005 - Changes to communication structure for overall release of purchase requisitions

M06E0004 - Changes to communication structure for release of purchasing document

M06E0005 - Role determination for release of purchasing documents

ME590001 - Grouping of requisitions for PO split in transaction ME59

MEETA001 - Determination of schedule line type (backlog, immediate requirement, forecast)

MEFLD004 - Determination of earliest delivery date for checking at time of goods receipt (PO only)

MELAB001 - Generation of forecast delivery schedule: realization via creation profile

MEQUERY1 - Enhancement for document overview ME21N / ME51N

MEVME001 - Calculation of default GR quantity and over/underdelivery tolerances

MM06E001 - User exits for inbound EDI messages and outbound purchasing documents

MM06E003 - Number range and document number

MM06E004 - Control of import data screens in purchase orders

MM06E005 - Customer fields in purchasing documents

MEREQ001 - Customer's own data in purchase requisitions

MM06E007 - Change document for requisitions when converting into POs

MM06E008 - Monitoring of contract target value in case of release orders

MM06E009 - Relevant texts for "Texts exist" indicator

MM06E010 - Field selection for vendor address

MM06E011 - Activation of requisition block

MM06L001 - Exits for determination of ratings in vendor evaluation

MMAL0001 - ALE source list distribution: outbound processing

MMAL0002 - ALE source list distribution: inbound processing

MMAL0003 - ALE purchasing info record distribution: outbound processing

MMAL0004 - ALE purchasing info record distribution: inbound processing

MMDA0001 - Default values for delivery addresses

MMFAB001 - User exit for generation of releases

MRFLB001 - Control items during release creation

LWBON001 - Enhancement of LIS update through extension of the communication structure MCKONA (business volumes and rebate income)

LWBON003 - Change settlement data for end-of-period rebate settlement before creation of settlement documents

LWSUS001 - Customer-specific source determination in Retail

LMEXF001 - Conditions in purchasing documents without invoice receipt

LMEKO002 - Enhance communication structure KOMP for price determination

MM Configuration help

Maintain Plant

Plant 0001 is the SAP default.

OX14 - Define Valuation Area (Tick one only- Once your system go live, no more changes)
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
Bx2
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 determination.
• 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 code

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.

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.

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

Steps:-

• 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

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
• Settlement
• 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 blocked.

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 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 MI01

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 document.)

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)

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 Assignments.

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

Mass Change Material Group In Materials Master

How I can move several materials belonging to one Material Group to another Material Group?

1. SE16 - MARA table find all the material with OLD_material_group.

2. MM17 - select TABLE as MARA and FIELDS as MATKL (material group), press execute.

3. In tab "Data Records to be changed", copy all the materials you have selected in step 1. Press execute.

4. In NEW VALUES field enter NEW_material_group. Press 'Carry out a mass change' button.

5. Press Save.

6. Check in MARA table for materials with new material group.

Change Base Unit of Measure

One raw material we assigned base unit of measure as OZ, later add alternate unit of measure as ML.

Now I wanted to change the base unit to ML and alternaet to OZ. For that I deleted component from the BOM. Related PO's, Prd ord and demand are closed. Deleted the alternate unit from purchasing and plant/stock (Area were we assign the alternate unit), then try to change it giving message as Unit of measure ML used as alternate unit. (In additinal data screen still the alternate unit and conversion available)

You can do the following procedure (after deleting the material in all concerened documents):

1. Delete the uom from Unit of issue field (General Plant Data / Storage 1) in MM if you have mentioned it there.

2. Go to additional data , use delete line tab and delete the conversion factor by keeping the cursor on that line.

3. Come to main data, now change the base unit of measure to the required one.

4. Then give the alternative unit of measure, system will ask for conversion factor.

5. Then save

Changing the Material Valuation Types

Assuming you have defined split valuation types in the sap img, you must remove all stock for the current period and one previous period before you can create the material with different valuation types.

The best method is to wait until the last day of a period, and then perform a physical inventory adjustment to remove the stock.

Then on the first day of the next period you can set up the material accounting views for each split valuation type.

After the material valuation types are set up for the material, you can do an inventory adjustment to put the stock back in.

Make sure you notify your accounting inventory control departments as to the quantities and values you are taking out at
the end of the period.

Price Control V or S in material type

Standard price are used for products that do not fluctuated frequently. It is usually used for finished or semi finished products.

Moving average price are used mainly for raw materials that are purchased externally. The advantage of using moving average price for your raw materials is that your inventory costs will always reflect the current market cost.

SAP strongly recommends that you do not select price control V for semi-finished products and finished products, because doing so will very easily cause the calculation of unrealistic valuation prices. SAP recommends:
Price control V for raw materials and trading goods; price control S for semi-finished products and products.

If you nevertheless select price control V, take care in the following situations:

1. Unrealistic prices occur if materials are produced and also retire during one period (that is, the inventory at the end of the period is smaller than the total of aquisitions from production orders) and if, in addition, several production orders belonging to a material were finished in this period, and the production order settlement calculates variances at the end of the period. Every single production order carries out an inventory coverage check and may therefore cause the moving average price to be changed. However, the individual production orders do not check whether the inventory available at the end of the period has already been debited by another production order.

Example: on 20 workdays in the period, 1 piece of material xyz was produced for each day and delivered to the warehouse at a price of USD 1000. At the end of the period there is 1 piece at the warehouse. Since an activity price of a participating cost center was higher than planned , every single production order calculates cost of goods manufactured of USD 1100 during the settlement. Every single one carries out a inventory coverage check and finds out that the variance can be posted completely to the inventory. That is, the ending inventory of one piece is debited with USD 20 x 100 and it consequently receives a price of USD 3000.

1. A settlement is carried out although not all costs have yet been posted to the order. This can even result in a price of 0 for the delivered product.
2. No period check of the costs is carried out on the order, that is, costs from previous periods may be settled.
3. Settling orders is already possible in the 'Delivery completed' status.

Solution: Standard price for products together with possible manual price changes.
If you are required to valuate semi-finished and finished products with actual prices that correspond to the costs of the actual production, SAP recommends you use the function of the material ledger for this. Here, a periodic actual price is created that is calculated on a much more reliable basis than the moving average price. A so-called price limiter quantity is used which makes sure that in the above example price differences are proportionally taken into account (95% of the total price differences) when valuating the 19 pieces withdrawn from material xyz which results in a periodic actual price of 1100 USD. In addition, it is possible as of Release 4.5 to even take into account the variances of the actual prices of the raw materials in the valuation of the semi-finished and finished products that are manufactured from it.

If we select std price for any type of material or mav and then make po, it will pick from material master or what?

The Purchase Info Record have the FIRST priority. When no po info record is found, the Purchase Order will pick the user LAST enter price. The PO module do not pick up any price from material master.

SAP Split Valuation for Materials

The SAP R/3 System allows you to valuate stocks of a material either together or separately, that is, according to different valuation criteria. Split valuation is necessary if, for example:

1. Stock from in-house production has a different valuation price than externally procured stock.

2. Stock obtained from one manufacturer is valuated at a different price than stock obtained from another manufacturer.

3. Different batch stocks of a material have different valuation prices.

4. Value damaged and repair part differently from a new part.

To used split valuation, you have to activate it using 'OMW0'.

To change split material valuation once it has been set, you must

1. first post out all stocks (for example, to a cost center or with movement type 562)
2. then change the control parameters
3. if necessary, change the automatic account determination
4. finally post the stocks back in again

In split valuation, you can distinguish between partial stocks of a material according to certain criteria and valuate them separately.

The material stock is divided according to valuation category and valuation type.

The valuation category determines how the partial stocks are divided, that is, according to which criteria.

The valuation type describes the characteristics of the individual stocks.

With the function "Setting" you can determine:

which valuation categories exist in your company (global categories)
which valuation types exist in your company (global types)
which valuation types belong to which valuation category
which valuation categories exist in a valuation area (local categories)

Your entries are only relevant if you set split valuation as active in the function "Global settings".

In the standard SAP R/3 System, the following valuation categories are default settings :

B procurement type

with the valuation types:

"EIGEN" for in-house production
"FREMD" for external procurement

H Origin

X automatic valuation (only for batch)

To select split valuation ('OMWC'), proceed as follows:

1. Determine the valuation categories and valuation types that are allowed for all valuation areas:
global valuation categories via menu "Goto --> Global Categories"
global valuation types via menu "Goto --> Global Types"

2. Allocate the valuation types to the valuation categories.
a) Select "Goto --> Global Categories".
b) Position the cursor on a valuation category and select
"Goto --> Global Categories --> Assignments --> 'Types->Category'".
c) Activate the valuation types you want.

3. Determine the local valuation categories for each valuation area.
a) Select "Goto --> Local definitions".
b) Position the cursor on a valuation area and select
"Goto --> Local Definitions --> Allocate Categoires->Org.units (button Cats->(OU)".
You obtain a list of the global valuation categories.
c) Activate the categories to be used in this valuation area.
The system creates the local valuation types based on the allocations under point 2.
Only now can you create a master record with split valuation.

Specifying Split Valuation by creating Material Subject to Split Valuation

1. Create a material master record, selecting the Accounting View 1.
2. Enter your data as required on the Accounting data screen, specifying a valuation category.
(If you can't find the valuation category field, it might be hidden, use OMSR to define the Field Groups.
Look for the field MBEW-BWTTY for Valuation category).
3. Be sure that the price control indicator is V for moving average price and enter a moving average price.
4. In the case of split valuation, you can create only one valuation header record with price control V because the
individual stock values are cumulated, and this total value is written to the valuation header record. This is where the
individual stocks of a material are managed cumulatively. To do this, fill in the Valuation category field on the accounting
screen when you create the material master record and leave the Valuation type field blank.
5. Save your data and the system creates the valuation header record.
6. The initial screen appears.
7. Extend the material by creating new material master records from the Accounting view 1. For the first material, specify a
valuation type in the Organizational Levels dialog box and enter the respective accounting data on the data screen.
Proceed likewise for the other materials, distinguishing between them by valuation type. To do this, call up the material in
creation mode again. Due to the fact that a valuation header record exists, the system requires you to enter a valuation
type for the valuation category.
8. Repeat step seven for every valuation type planned.

You want to valuate the stock of material XYZ that you obtain from manufacturer A in Los Angeles at a different price than the stock you obtain from manufacturer B in Detroit. In this case, the valuation category is H for origin. Your valuation types can be LOS ANGELES and DETROIT.

If a material is subject to split valuation, every quantity (sub-stock) of this material must be assigned to a valuation type (for example, country of origin).

For every valuation type, there are two types of data in the system, as follows:

Valuation data (for example, valuation price, total stock quantity, total stock value), which is defined for every valuation type at valuation-area level and applies to all dependent storage locations.

Stock data, which, like batch data, is managed separately for each storage location. If a material that is subject to split valuation is also subject to management in batches, its stock data is not managed by valuation type, but rather by batch. Every batch is assigned to a valuation type.

The stock quantity, stock value, and valuation price for all valuation types are managed cumulatively at valuation-area level.

Must the Valuation Type Exist Before the First Goods Receipt?

You can post the goods receipt of material of a certain valuation type only if the valuation data for this valuation type already exists, because the system valuates the goods receipt at the price defined in the valuation data. On the other hand, the stock data for the valuation type is created automatically during the first goods receipt into the storage location, if this is defined in Customizing for Inventory Management.

Goods Movements with Materials Subject to Split Valuation

If you want to enter goods movements for materials subject to split valuation, you must enter the valuation type in addition to the material number.

Enter the valuation type in the Batch field for MB01.

In MIGO, there is a valuation type field in Detail data -> Material.