SAP MM Configuration Hints and Tips

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. 


Comments (2)

chins
Said this on 7-31-2010 At 01:09 pm

anyone forward a sap mm model resume

munendra
Said this on 4-20-2011 At 04:47 pm

dear sir i wont ti complete PP,MMand SD Modules materials on my Email ID. I M obliged 2 u. I M waiting for your response.

thx

Your's

Munendra

Chandigarh

mpsingh1133@gmail.com

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