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MM Class Notes

The document discusses different SAP project types including implementation, support, roll-out, enhancement, and upgradation projects. It then covers material management in SAP, including the procurement to pay cycle and inventory management. Finally, it defines important SAP organizational terms like client, company code, plants, and storage locations as well as types of procurement organizations.

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Venkatesh
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56 views4 pages

MM Class Notes

The document discusses different SAP project types including implementation, support, roll-out, enhancement, and upgradation projects. It then covers material management in SAP, including the procurement to pay cycle and inventory management. Finally, it defines important SAP organizational terms like client, company code, plants, and storage locations as well as types of procurement organizations.

Uploaded by

Venkatesh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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MATERIAL MANAGEMENT

“Material management is an approach for planning, organizing, and controlling


all those activities principally concerned with the flow of materials into an
organization.”

SAP Project Types:

1. Implementation Project
2. Support Project
3. Roll Out Project
4. Enhancement Project
5. Up Gradation Project.
6. Diverse Teacher.

1. Implementaion Project:

Making the New Template is called Implementation Project. In this two types of Project is there
(1) Normal and (2) Green field.

Normal Project: There is No Paperwork Initiated, as per the Business Process wise implement
the system.

Green field Project: here no Business Process, Paper work also required for System
Implementation

2.Support Project: Implementation done at somewhere, we are giving only Support for the
Existing Implementation Project is Called Support Project.

3.Roll-Out Project: Copy of the Existing Template for the same Client in other Company Code is
called Roll-Out Project, Based on Company Code Location Wise Country Specific Adjustments
Required.

4.Enhansement Project: Existing Implemented System(SAP) Needed for the some Changes for
the Their Country introduce the New Rules.

5. Upgradation Project: Based the Generation SAP System As Upgraded. It is called Upgrading
Project.

6. Diverse Teacher: One Part of the Organization Plant Merge with Some Other Company
System is called as Diverse Teacher.
Material Management

Procurement Inventory Management Invoice Verification

PROCUREMENT:

Fundamentals of the Procurement:

 Requirement
 Identification of the Source (Vendor)
 Get Material
 Payment

Normal Business Process SAP (( Procure 2 Pay) P2P Cycle)

1. Requirements’ 1. Purchase Requisition (PR)

2. From where/ Identification of Correct 2. Request for Quotation (RFQ)


Source.

3. Get the Response from the Vendor 3. Entry or Maintain the Quotation

4. Best one Chosen out of entire 4. Comparing the Quotation.


Quotation.

5. Order the Material. 5. Purchase Order.

6. Goods Receipt. 6. Goods Receipt.

7. Receive the Purchase Invoice. 7. Receive the Purchase Invoice.

8. Payment Against GR 8. Payment Against GR


In SAP first 4 Steps in (Identification of Vendor),
Three way match: “At the Time of Invoice Verification System will check Quantity in 3 ways
Purchase Order Qty, Goods Receipt Qty, Invoice Qty it is Called 3 Way Match.

Two Way Match: At the time of Invoice Verification time System will Check Quantity in 2 Ways
Purchase order Quantity and Invoice Quantity.

Client: Who is having the Ultimate Authority of the Business is called Client.

Company Code: Where the Place Profit and Loss and Financial Matters Consolidate is called
Company Code.

Plants: Manufacturing Units/ All departments Logistics Matters Involved in Place is called Plant.

Storage Location: Storage Place of the Materials is called Storage Location.

Types of Procurement Organization:

1. Central Procurement Org.


2. Company Code Level Procurement Org.
3. Plant Specific Procurement Org.
4. Reference Procurement Org.
5. Standard Procurement Org.

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