Materials management with SAP ERP: functionality and technical configuration

Preface
1 Materials Management Overview
	1.1 Materials Management as a Part of SAP ERP
		1.1.1 SAP History
		1.1.2 Core SAP ERP Functionality
		1.1.3 Business Suite Functionality
	1.2 Materials Management as Part of Logistics
		1.2.1 Definition of Logistics and Supply Chain
		1.2.2 Management of the Supply Chain
		1.2.3 SAP and Logistics
	1.3 MM Integration
		1.3.1 The Material Flow of the Supply Chain
		1.3.2 The Information Flow of the Supply Chain
		1.3.3 The Financial Flow of the Supply Chain
	1.4 Summary
2 Materials Management Organizational Structure
	2.1 Client Structure
		2.1.1 What Is a Client?
			Client 000
			Client 001
			Client 066
		2.1.2  Creating the Client Landscape
		2.1.3 Defining a Client
		2.1.4 Correction and Transport System (CTS)
	2.2 Company Code
		2.2.1 What Is a Company?
		2.2.2 Creating a Company Code
		2.2.3 Assigning a Company Code
	2.3 Plants
		2.3.1 What Is a Plant?
		2.3.2 Prerequisites for a Plant
		2.3.3 Defining a Plant
		2.3.4 Valuation Level
		2.3.5 Assigning a Plant
	2.4 Storage Locations
		2.4.1 What Is a Storage Location?
		2.4.2 Defining a Storage Location
		2.4.3 Automatic Creation of Storage Locations
	2.5 Warehouse and Storage Types
		2.5.1 Assign a Warehouse to a Plant and Storage Location
		2.5.2 Storage Type
		2.5.3 Storage Sections and Storage Bins
	2.6 Purchasing Organization
		2.6.1 What Is a Purchasing Organization?
		2.6.2 Types of Purchasing Organizations
			Purchasing at an Enterprise Level
			Purchasing at the Company Level
			Purchasing at the Plant Level
			Reference Purchasing Organization
		2.6.3 Create a Purchasing Organization
		2.6.4 Purchasing Groups
	2.7 Business Examples — Organizational Structure
		2.7.1 Client Structure
			Example
		2.7.2 Plants
			Example
		2.7.3 Storage Locations
			Example
		2.7.4 Warehouse Management
			Example
		2.7.5 Purchasing Organization
			Example
	2.8 Summary
3 Master Data in Materials Management
	3.1 Material Master
		3.1.1 Material Master Overview
		3.1.2 Material Master Tables
		3.1.3 Material Numbering
		3.1.4 Material Number Range
		3.1.5 Material Type
	3.2 Vendor Master
		3.2.1 Definition of a Vendor
		3.2.2 Vendor Master in SAP
			General Data
			Accounting Data
			Purchasing Data
		3.2.3 Vendor Account Groups
		3.2.4 Vendor Number Range
	3.3 Purchasing Information Data
		3.3.1 Purchasing Information Record
		3.3.2 Purchasing Information Record for a Non-Stock Material
		3.3.3 Purchasing Information Record Numbering
		3.3.4 Purchasing Information Record-Screen Layout
	3.4 Batch Management Data
		3.4.1 What Is a Batch?
		3.4.2 Batch Level
			Client Level
			Plant Level
			Material Level
		3.4.3 Changing the Batch Level
		3.4.4 Batch-Status Management
		3.4.5 Initial Batch Status
		3.4.6 Batch-Number Assignment
	3.5 Serial Number Data
		3.5.1 What Is a Serial Number?
		3.5.2 Serial Number Profile
		3.5.3 Serializing Procedures
	3.6 Business Examples – Master Data in Materials Management
		3.6.1 Material Master Data
			Example
		3.6.2 Vendor Master Data
			Example
		3.6.3 Purchasing Data
			Example
		3.6.4 Batch Management
			Example
		3.6.5 Serial Numbers
			Example
	3.7 Summary
4 Material Master Data – Part 1
	4.1 Industry Sector
	4.2 Material Type
		4.2.1 Standard Material Types
			CONT – KANBAN Container
			DIEN – Services
			ERSA – Spare Parts
			FERT – Finished Good
			FHMI – Production Resources/Tools (PRT)
			HALB – Semi-Finished Goods
			HAWA – Trading Goods
			HERS – Manufacturer Parts
			HIBE – Operating Supplies
			IBAU – Maintenance Assembly
			KMAT – Configurable Material
			LEER – Empties
			LEIH – Returnable Packaging
			NLAG – Non-Stock Material
			PIPE – Pipeline Material
			ROH – Raw Materials
			UNBW – Non-Valuated Material
			VERP – Packaging Material
			WETT – Competitive Products
		4.2.2 Configuring Material Types
		4.2.3 Changing a Material Type
	4.3 Basic Data
		4.3.1 Creating a Material Master Record - Immediately
		4.3.2 Creating a Material Master Record - Schedule
		4.3.3 Creating a Material Master Record – Special
		4.3.4 Organizational Levels
			MRP Profile
			Forecast Profile
		4.3.5 Basic Data Screen
			Material Description
			Base Unit of Measure
			Material Group
			Old Material Number
			Division
			Laboratory/Design Office
			Cross-Plant Material Status
			Product Hierarchy
			General Item Category Group
			Dimensions
			EAN/UPC
			Product/Inspection Memo and Industry Standard Description
			Basic Material
			Dangerous Goods (DG) Indicator Profile
			Environmentally Relevant
			Highly Viscous and In Bulk/Liquid
			Design Drawing Fields
			Cross-Plant Configurable Material
			Material Group: Packaging Materials
	4.4 Classification Data
		4.4.1 Class Type
		4.4.2 Classes
		4.4.3 Characteristics
	4.5 Purchasing Data
		4.5.1 General Data
			Base Unit of Measure
			Order Unit
			Variable Order Unit
			Plant-Specific Material Status
			Tax Indicator for Material
			Qualify for Free Goods Discount
			Material Freight Group
			Automatic Purchase Order
			Batch-Management Requirement Indicator
		4.5.2 Purchasing Value Key
			Deadline Monitoring – Reminders
			Deadline Monitoring – Acknowledgement Required
			GR/IR Control – Under-Delivery Tolerance
			GR/IR Control – Over-Delivery Tolerance
			GR/IR Control – Unlimited Over-Delivery Allowed
			GR/IR Control – Shipping Instructions
			Vendor Evaluation – Minimum-Delivery Quantity Percentage
			Vendor Evaluation – Standardizing Value for Delivery-Time Variance
		4.5.3 Other Data/Manufacturer Data
			Goods-Receipt Processing Time in Days
			Post to Inspection Stock
			Critical Part
			Source List
			Quota Arrangement Usage
			Item Relevant to JIT Delivery Schedules
		4.5.4 Manufacturer Parts
			Manufacturer Part Number
			Manufacturer
		4.5.5 Foreign Trade Data
			Commodity Code/Import Code Number for Foreign Trade
			Export/Import Group
			CAS Number for Pharmaceutical Products
			PRODCOM Number for Foreign Trade
			Control Code for Consumption Taxes in Foreign Trade
		4.5.6 Origin/EU Market Organization/Preferences
			Country of Origin
			Region of Origin
			CAP Product List Number
			CAP Product Group
			Preference Status
			Vendor Declaration Status
		4.5.7 Legal Control
			Exemption Certificate/Certificate Number/Issue Date
			Military Goods
	4.6 Forecasting Data
		4.6.1 General Data
			Forecast Model
			Period Indicator
			Fiscal Year Variant
			Reference Material for Consumption
			Reference Plant
			Date To
			Multiplier
		4.6.2 Number of Periods Required
			Historical Periods
			Forecast Periods
			Number of Periods for Initialization
			Fixed Periods
			Number of Periods per Seasonal Cycle
		4.6.3 Control Data
			Initialization Indicator
			Tracking Limit
			Reset Forecast Model Automatically
			Model Selection
			Selection Procedure
			Indicator for Parameter Optimization
			Optimization Level
			Weighting Group
			Correction Factor Indicator
	4.7 Work Scheduling Data
		4.7.1 General Data
			Production Unit
			Production Scheduler
			Production Storage Location
			Production Scheduling Profile
		4.7.2 Tolerance Data
			Under-Delivery Tolerance
			Over-Delivery Tolerance
			Unlimited Over-Delivery
		4.7.3 In-House Production Time in Days
			Setup Time
			Processing Time
			Base Quantity
			Interoperation Time
			In-House Production Time
	4.8 Sales Organizational Data
		4.8.1 General Data
			Sales Unit
			Variable Sales Unit Not Allowed Indicator
			Cross-Distribution Chain Material Status
			Delivering Plant
		4.8.2 Tax Data
			Tax Category/Tax Classification
		4.8.3 Quantity Stipulations
			Minimum Order Quantity
			Minimum Delivery Quantity
			Delivery Unit
			Rounding Profile
		4.8.4 Grouping Items
			Material Statistics Group
			Volume Rebate Group
			Commission Group
			Material Pricing Group
			Account Assignment Group
		4.8.5 Material Groups
		4.8.6 Product Attributes
	4.9 Sales General Data
		4.9.1 General Data
			Replacement Part
			Availability Check
			Approved Batch Record Required Indicator
		4.9.2 Shipping Data
			Transportation Group
			Loading Group
			Setup Time
			Processing Time/Base Quantity
		4.9.3 General Plant Parameters
			Negative Stock in Plant
			Profit Center
			Serial Number Profile
			Distribution Profile
			Level of Explicitness for Serial Number
	4.10 Business Examples – Material Master Data
		4.10.1 Material Type
			Example
		4.10.2 Classification Data
			Example
		4.10.3 Purchasing Data
			Example
		4.10.4 Sales Data
			Example
	4.11 Summary
5 Material Master Data – Part 2
	5.1 Production Resources/Tools (PRT) Data
		5.1.1 General Data
			Task List Usage
			Grouping Keys 1 and 2
		5.1.2 Default Values for Task List Assignment
			Control Key for the Management of PRTs
			Standard Text Key
			Quantity Formula
			Usage Value Formula
			Reference Date to Start of PRT Usage
			Offset to Start
			Reference Date for Finish/Offset to Finish
	5.2 Plant Data/Storage Location
		5.2.1 General Data
			Storage Bin
			Picking Area
			Temperature Conditions
			Storage Conditions
			Container Requirements
			Hazardous Material Number
			Cycle Counting Physical Inventory Indicator
			Cycle Counting Indicator Is Fixed
			Number of Goods Receipt Slips
			Label Type
			Label Form
		5.2.2 Shelf Life Data
			Maximum Storage Period
			Time Unit
			Minimum Remaining Shelf Life
			Total Shelf Life
			Period Indicator for Shelf-Life Expiration Date
			Rounding Rule SLED
	5.3 Warehouse Management Data
		5.3.1 General Data
			Warehouse Management Unit of Measure
			Unit of Issue
			Picking Storage Type
		5.3.2 Storage Strategies
			Stock Removal
			Stock Placement
			Storage Section
			Bulk Storage
			Special Movement
			Message to IM
			Two-Step Picking
			Allow Addition to Stock Indicator
		5.3.3 Palletization Data
			Loading Equipment Quantity/Unit of Measure
			Storage Unit Type
		5.3.4 Storage Bin Stock
			Storage Bin
			Maximum Bin Quantity
			Control Quantity
			Minimum Bin Quantity
			Replenishment Quantity
			Rounding Quantity
	5.4 Quality Management Data
		5.4.1 General Data
			Inspection Setup
			Post to Inspection Stock Indicator
			Material Authorization Group for Activities in QM
			Document Required Indicator
			Inspection Interval
			Catalog Profile
		5.4.2 Procurement Data
			QM in Procurement Indicator
			QM Control Key
			Certificate Type
			Target QM System
	5.5 Material Requirements Planning Data
		5.5.1 General Data
			MRP Group
			ABC Indicator
		5.5.2 MRP Procedure
			MRP Type
			Reorder Point
			Planning Time Fence
			Planning Cycle
			MRP Controller
		5.5.3 Lot Size Data
			Lot Size
			Minimum Lot Size
			Maximum Lot Size
			Fixed Lot Size
			Maximum Stock Level
			Ordering Costs
			Storage Costs Indicator
			Assembly Scrap
			Takt Time
		5.5.4 Procurement
			Procurement Type
			Batch Entry
			Special Procurement
			Production Storage Location
			Default Supply Area
			Storage Location for External Procurement
			JIT Delivery Schedule
			Co-Product Indicator
			Bulk Material Indicator
		5.5.5 Net Requirements Calculations
			Safety Stock
			Service Level
			Minimum Safety Stock
			Coverage Profile
			Safety Time Indicator
			Safety Time/Actual Coverage
			Period Profile for Safety Time
		5.5.6 Forecast Requirements
			Period Indicator
			Fiscal Year Variant
			Splitting Indicator
		5.5.7 Planning
			Strategy Group
			Consumption Mode
			Backward Consumption Period
			Forward Consumption Period
			Mixed MRP
			Planning Material
			Planning Plant
			Conversion Factor for Planning Material
		5.5.8 Availability Check
			Total Replenishment Lead Time
			Cross-Project Material Indicator
		5.5.9 Bill of Materials Explosion/Dependent Requirements
			Selection Method
			Component Scrap
			Individual or Collective Requirements
			Requirements Group
			MRP Dependent Requirements
		5.5.10 Discontinued Parts
			Discontinuation Indicator
			Effective-out Date
			Follow-Up Material
		5.5.11 Repetitive Manufacturing/Assembly/Deployment Strategy
			Repetitive Manufacturing Indicator
			Repetitive Manufacturing Profile
			Action Control
			Fair Share Rule
			Push Distribution
		5.5.12 Storage Location MRP
			Storage Location MRP Indicator
			Special Procurement Type at Storage Location Level
			Reorder Point for Storage Location MRP
			Replenishment Quantity for Storage Location MRP
	5.6 Accounting Data
		5.6.1 General Data
			Valuation Category
			ML Active
		5.6.2 Current Valuation
			Valuation Class
			Valuation Class for Sales Order Stocks
			Valuation Class for Project Stock
			Price Control
			Price Unit
			Moving Price
			Standard Price
			Future Price
		5.6.3 Determination of Lowest Value
			Tax Price
			Commercial Price
			Devaluation Indicator
		5.6.4 LIFO Data
			LIFO/FIFO-Relevant
			LIFO Pool
	5.7 Costing Data
		5.7.1 General Data
			Do Not Cost
			With Quantity Structure
			Origin Group
			Material Origin
			Overhead Group
		5.7.2 Quantity Structure Data
			Group
			Group Counter
			Task-List Type
			Costing Lot Size
		5.7.3 Standard Cost Estimate
			Planned Price
			Standard Price
		5.7.4 Planned Prices
			Planned Price 1
			Planned Price Date 1
	5.8 Business Examples – Material Master Data
		5.8.1 Plant and Storage Location Data
			Example
		5.8.2 Warehouse Data
			Example
		5.8.3 Quality Management Data
			Example
		5.8.4 Material Requirements Planning Data
			Example
		5.8.5 Accounting Data
			Example
	5.9 Summary
6 Vendor Master Data
	6.1 General Data
		6.1.1 Address Screen
			Title
			Name
			Search Terms
			Street Address
			PO Box Address
			Communication
		6.1.2 Control Screen
			Customer
			Trading Partner
			Corporate Group
			Tax Numbers 1 and 2
			Tax Type
			Jurisdiction Code
			Country-Specific Tax Fields
			Global Location Number (GLN)
			Industry Key
			Standard Carrier Alpha Code (SCAC)
			Forwarding Agent Freight Group
			Service-Agent Procedure Group
			Vendor’s QM System
			QM System Valid to Date
			External Manufacturer Code Name or Number
		6.1.3 Payment Transactions
			Bank Details
			Payment Transactions
	6.2 Accounting Information
		6.2.1 Accounting Information
			Reconciliation Account
			Sort Key
			Head Office
			Authorization Group
			Cash Management Group
			Release Group
			Minority Indicator
			Certification Date for Minority Vendors
			Interest Calculation Indicator
			Interest Calculation Frequency
			Withholding Tax Code
			Withholding Tax Country Key
			Vendor Recipient Type
			Exemption Number
			Validity Date for Exemption
			Exemption Authority
			Previous Account Number
			Personnel Number
		6.2.2 Payment Transactions
			Payment Terms
			Tolerance Group
			Check Flag for Double Invoices
			Check Cashing Time
			Payment Methods
			Payment Block
			House Bank
			Individual Payment Indicator
			Bill of Exchange Limit
			Payment Advice by EDI
		6.2.3 Correspondence Screen
			Dunning Procedure
			Dunning Block
			Dunning Recipient
			Legal Dunning Procedure
			Last Dunned
			Dunning Level
			Dunning Clerk
			Account Statement Indicator
			Accounting Clerk
			Account with Vendor
			Vendor Clerk Information
	6.3 Purchasing Data
		6.3.1 Conditions
			Order Currency
			Incoterms
			Vendor Schema Group
			Pricing Date Control
			Order Optimum Restrictions
		6.3.2 Sales Data
			Salesperson
			Telephone
			Account with Vendor
		6.3.3 Control Data
			Good Receipt-Based Invoice Verification
			Automatic Evaluated Receipt Settlement
			Acknowledgement Required
			Automatic Purchase Order
			Subsequent Settlement
			Business-Volume Comparison/Agreement Necessary
			Document Index Active
			Service-Based Invoice Verification
			ABC Indicator
			Mode of Transport for Foreign Trade
			Office of Entry
			Sort Criterion
			Grant Discount in Kind
			Relevant for Price Determination for Vendor Hierarchy
		6.3.4 Default Data Material
			Purchasing Group
			Planned Delivery Time
			Confirmation Control Key
			Unit of Measure Group
			Rounding Profile
		6.3.5 Service Data
			Price Marking Agreement
			Rack-Jobbing Agreement
			Order Entry by Vendor
			Vendor Service Level
		6.3.6 Partner Functions
	6.4 Business Examples – Vendor Master Data
		6.4.1 General Data
			Example
		6.4.2 Purchasing Data
			Example
	6.5 Summary
7 Purchasing Information Data
	7.1 Purchasing General Data
		7.1.1 Create a Purchasing Information Record
			Standard Purchasing Information Record
			Subcontracting Purchasing Information Record
			Pipeline Purchasing Information Record
			Consignment Purchasing Information Record
		7.1.2 Create a Purchasing Information Record with Material Number
		7.1.3 Create a Purchasing Information Record without a Material Number
		7.1.4 General Data Screen
			Reminder Fields
			Vendor Sub-Range (VSR)
			Vendor Sub-Range (VSR) Sort Number
			Points
			Return Agreement
	7.2 Purchasing Organization Data
		7.2.1 Conditions
			Validity
			Price Calculation Schema
			Condition Type
			Access Sequence
			Condition Tables
		7.2.2 Text Screen
		7.2.3 Statistical Data
	7.3 Business Examples – Purchasing Information Data
		7.3.1 Standard Purchasing Information Record
			Example
		7.3.2 Subcontracting Purchasing Information Record
			Example
	7.4 Summary
8 Batch Management Data
	8.1 Batch Management Overview
		8.1.1 Batch Definition
		8.1.2 Pharmaceutical Industry
			Product Recall
	8.2 Batch Master Record
		8.2.1 Creating a Batch
			Production Date
			Shelf-Life Expiration Date
			Available From
			Batch Status
			Next Inspection
			Vendor Batch
			Class
			Characteristics
			Release Status
			Linked Documents
			Document Type
			Document
			Document Part
			Version
		8.2.2 Changing a Batch
		8.2.3 Deleting a Batch
	8.3 Batch Determination
		8.3.1 Batch Determination Condition Tables
		8.3.2 Batch Determination Access Sequences
		8.3.3 Batch Strategy Types
		8.3.4 Batch Search Procedure
	8.4 Batch Information Cockpit
		8.4.1 Batch Information Cockpit Overview
		8.4.2 BIC Standard Configuration
		8.4.3 BIC User-Defined Configuration
	8.5 Business Examples – Batch Management Data
		8.5.1 Batch Management Record
			Example
		8.5.2 Batch Determination
			Example
	8.6 Summary
9 Material Master Record
	9.1 Creating a Material Master Record
		9.1.1 Create a Material Master Record Through a Schedule
	9.2 Changing a Material Master Record
		9.2.1 Change a Material Master Record - Immediately
		9.2.2 Change a Material Master Record – Schedule
		9.2.3 Change a Material Master Record – Activate
			Activate To
			Activate From
			Keep User Names
			Changes Per Processing Block
			Test Mode
	9.3 Material Master Deletion
		9.3.1 Flag for Deletion – Immediately
		9.3.2 Flag for Deletion – Schedule
		9.3.3 Flag for Deletion – Proposal List
		9.3.4 Material Master Archiving
		9.3.5 Remove a Material-Deletion Flag
	9.4 Loading Material Master Records
		9.4.1 Loading Material Master Records via Direct Input
		9.4.2 Distribution of Material Master Records via ALE
	9.5 Production Versions
		9.5.1 Production Version Overview
		9.5.2 Creating a Production Version
			Version
			Version Text
			Valid To/Valid From
			Basic Data
			Planning Data
			Bill of Material Data
			Repetitive Manufacturing Data
			Other Production-Version Data
		9.5.3 Production Versions – Mass Processing
	9.6 Revision Levels
		9.6.1 Revision Level Overview
		9.6.2 Revision Level Configuration
	9.7 Business Examples – Material Master Record
		9.7.1 Creating and Changing a Material Master Record
			Example
		9.7.2 Material Master Deletion
			Example
		9.7.3 Version Control
			Example
	9.8 Summary
10 Vendor Master Record
	10.1 Creating the Vendor Master Record
	10.2 Changing the Vendor Master Record
		10.2.1 Change Vendor Master Record - Current
		10.2.2 Change Vendor Master Record - Planned
		10.2.3 Display Planned Changes to Vendor Master Records
		10.2.4 Activate Planned Changes
		10.2.5 Change Vendor Account Group
	10.3 Deleting Vendor Master Record
		10.3.1 Flag a Vendor Master Record for Deletion
			Deletion Flags
			Deletion Blocks – General Data
		10.3.2 Deleting Vendor Records via Archiving
	10.4 Display Vendor Master Record
		10.4.1 Display Vendor Master Record – Current
		10.4.2 Display Vendor Master Record – Per Key Date
		10.4.3 Display Vendors – Purchasing List
	10.5 Blocking Vendors
		10.5.1 Block a Vendor – Purchasing
	10.6 One-Time Vendor
	10.7 Vendor Sub-Range Functionality
	10.8 Business Examples – Vendor Master
		10.8.1 Creating and Changing a Vendor Master Record
			Example
		10.8.2 Vendor Master Deletion
			Example
		10.8.3 One Time Vendor
			Example
	10.9 Summary
11 Purchasing Overview
	11.1  Purchase Requisition
	11.2 Request for Quotation
	11.3 Quotation
	11.4 Purchase Order
	11.5 Source List and Source Determination
		11.5.1 Single Source
			Compatibility
			Economic Justification
		11.5.2 Multi-Source
			Valid To/Valid From
			Agreement/Item
			Fixed Source
			Blocked Source
			MRP Field
		11.5.3 Generate a Source List
		11.5.4 Source Determination
	11.6 Conditions in Purchasing
		11.6.1 Condition Processing
			Condition Types
		11.6.2 Pricing Conditions
			Time-Dependent Conditions
			Time-Independent Conditions
		11.6.3 Taxes
		11.6.4 Delivery Costs
	11.7 Vendor Evaluation
		11.7.1 Vendor Evaluation Overview
		11.7.2 Vendor Evaluation Criteria
			Main Criteria
			Subcriteria
		11.7.3 Vendor Evaluation Weighting
		11.7.4 Points Scoring for Criteria
		11.7.5 Maintain Vendor Evaluation
		11.7.6 Scoring for Automatic and Semi-Automatic Criteria
		11.7.7 Evaluation for a Material
	11.8 Business Examples - Purchasing
		11.8.1 Purchase Requisitions
			Example
		11.8.2 Source List
			Example
		11.8.3 Conditions
			Example
		11.8.4 Vendor Evaluation
			Example
	11.9 Summary
12 Purchase Requisition
	12.1 Indirectly Created Requisition
		12.1.1 Purchase Requisition Created by Production Order
		12.1.2 Purchase Requisition Created by Plant Maintenance Order
		12.1.3 Purchase Requisition Created by Project Systems
		12.1.4 Purchase Requisition Created by Materials Planning
	12.2 Directly Created Requisition
		12.2.1 Create a Purchase Requisition with a Material Master Record
			Document Type
			Purchase Requisition Number
			Item Category
			Account Assignment Category
			Plant/Storage Location
			Purchasing Group
			Requirement Tracking Number (RTN)
			Requisitioner
		12.2.2 Create a Purchase Requisition without a Material Master Record
	12.3 Processing a Purchase Requisition
		12.3.1 Change a Purchase Requisition
		12.3.2 Display a Purchase Requisition
			Purchase Requisition – Display
			Purchase Requisition – List Display
			Purchase Requisitions by Tracking Number
		12.3.3 Close a Purchase Requisition
		12.3.4 Follow-On Functions
			Assign Source
	12.4 Business Examples – Purchase Requisitions
		12.4.1 Indirectly Created Purchase Requisition
			Example
		12.4.2 Directly Created Purchase Requisition
			Example
	12.5 Summary
13 Request for Quotation
	13.1 Creating a Request for Quotation
		13.1.1 RFQ Type
		13.1.2 RFQ Date
		13.1.3 Quotation Deadline
		13.1.4 RFQ Document Number
		13.1.5 Organizational Data
		13.1.6 Default Data for Items
			Item category
			Delivery Date
			Plant/Storage Location
			Material Group
			Requirement Tracking Number (RTN)
		13.1.7 Collective Number
		13.1.8 Validity Start/Validity End
		13.1.9 Apply By
		13.1.10 Binding Period
		13.1.11 Reference Data
		13.1.12 RFQ Item Detail
		13.1.13 RFQ Delivery Schedule
		13.1.14 Additional Data
		13.1.15 Vendor Selection
	13.2 Changing a Request for Quotation
	13.3 Releasing an RFQ
		13.3.1 Release Code/Release Group/Release Strategy
		13.3.2 Set Release/Cancel Release
		13.3.3 Release Prerequisite Fulfilled
		13.3.4 List with Items
		13.3.5 Scope of List
		13.3.6 Purchasing Document Category
		13.3.7 Other Selection Criteria
	13.4 Issuing a Request for Quotation to a Vendor
	13.5 Business Examples – Request for Quotation
		13.5.1 Creating and Changing a Request for Quotation
			Example
		13.5.2 Releasing a Request for Quotation
			Example
	13.6 Summary
14 Quotation
	14.1 Entering a Quotation
	14.2 Comparing Quotations
		14.2.1 Price Comparison Factor in Quotations
		14.2.2 Other Qualitative Factors in Quotations
	14.3 Rejecting Quotations
		14.3.1 Flagging the Quotation as Rejected
		14.3.2 Printing the Quotation Rejection
		14.3.3 Advising Unsuccessful Bidders
	14.4 Business Examples – Quotations
		14.4.1 Comparing Quotations
			Example
		14.4.2 Rejecting Quotations
			Example
	14.5 Summary
15 Purchase Order
	15.1 Create a Purchase Order
		15.1.1 Create a Purchase Order with Vendor Known
		15.1.2 Create a Purchase Order Where the Vendor Is Unknown
	15.2 Maintaining a Purchase Order
	15.3 Blocking and Canceling a Purchase Order
		15.3.1 Block a Purchase Order Line Item
		15.3.2 Canceling a Purchase Order Line Item
	15.4 Account Assignment in a Purchase Order
		15.4.1 Account Assignment Overview
		15.4.2 Account Assignment Categories
		15.4.3 Single Account Assignment
		15.4.4 Multiple Account Assignment
	15.5 Outline Purchase Agreement
		15.5.1 Outline Purchase Agreement Overview
		15.5.2 Outline Purchase Agreement Types
	15.6 Scheduling Agreement
		15.6.1 Scheduling Agreement Overview
		15.6.2 Create a Scheduling Agreement Manually
		15.6.3 Create a Scheduling Agreement with Reference
	15.7 Contracts
		15.7.1 Contract Overview
			Quantity Contract
			Value Contract
		15.7.2 Centrally Agreed Contract
		15.7.3 Creating a Contract
		15.7.4 Release Order Against a Contract
	15.8 Vendor Confirmation
		15.8.1 Vendor Confirmation Overview
		15.8.2 Confirmation Configuration
			External Confirmations
			Internal Confirmations
		15.8.3 Enter a Manual Confirmation
	15.9 Messages and Outputs
		15.9.1 Message Overview
		15.9.2 Message Creation
		15.9.3 Message Output Definition
		15.9.4 Output Messages
	15.10 Pricing Procedures
		15.10.1 Pricing Conditions
		15.10.2 Condition Types
		15.10.3 Condition Tables
		15.10.4 Access Sequences
		15.10.5 Calculation Schema
		15.10.6 Price Determination
		15.10.7 Standard Pricing Condition Type PB00
		15.10.8 Calculation Schema for Condition Type PB00
	15.11 Reporting
		15.11.1 Reporting Overview
	15.12 Release Procedures
		15.12.1 Introduction to Release Procedures
		15.12.2 Release with Classification for a Purchase Requisition
			Edit Characteristics
			Edit Class
			Release Groups
			Release Codes
			Release Indicator
			Release Strategy
			Workflow
	15.13 Business Examples – Purchase Orders
		15.13.1 Blocking a Purchase Order
			Example
		15.13.2 Outline Purchase Agreement
			Example
		15.13.3 Scheduling Agreement
			Example
		15.13.4 Contracts
			Example
		15.13.5 Releasing a Purchase Order
			Example
	15.14 Summary
16 External Service Management (ESM)
	16.1 Service Master Record
		16.1.1 Activity Number
		16.1.2 Service Category
		16.1.3 Material/Service Group
		16.1.4 Tax Indicator
		16.1.5 Valuation Class
		16.1.6 Formula
		16.1.7 Graphic
	16.2 Standard Service Catalog (SSC)
		16.2.1 Overview
		16.2.2 Creating a SSC Entry
	16.3 Conditions in ESM
		16.3.1 Total Price Condition
	16.4 Procurement of Services
		16.4.1 Using a Purchase Order
			Overall Limit
			Expected Value
			“Actual” Value
			Contract
			Services
	16.5 Entry of Services
		16.5.1 Service Entry Sheet
	16.6 Blanket Purchase Order
		16.6.1 Creating a Blanket Purchase Order
			Document Type
			Item Category
			Validity Period
			Vendor Invoicing
	16.7 Business Examples - External Service Management
		16.7.1 Service Master Record
			Example
		16.7.2 Procurement of Services
			Example
		16.7.3 Blanket Purchase Order
			Example
	16.8 Summary
17 Consumption-Based Planning
	17.1 Master Data in CBP
		17.1.1 Material Master Record
		17.1.2 Planning Calendar
	17.2 Planning Process
		17.2.1 Planning at the Plant Level
		17.2.2 Planning at the Storage Location Level
			Storage Location Planning
			Excluding Storage Location from Planning
	17.3 Planning Evaluation
		17.3.1 MRP List
		17.3.2 Stock/Requirements List
	17.4 Procurement Proposal
		17.4.1 Purchase Requisitions
		17.4.2 Schedule Lines
		17.4.3 Planned Orders
	17.5 Business Examples – Consumption-Based Planning
		17.5.1 Planning Process
			Example
		17.5.2 Planning Evaluation
			Example
	17.6 Summary
18 Material Requirements Planning
	18.1 Reorder-Point Planning
		18.1.1 Manual Reorder-Point Planning
		18.1.2 Automatic Reorder-Point Planning
	18.2 Forecast-Based Planning
	18.3 Time-Phased Planning
	18.4 Business Examples – Material Requirements Planning
		18.4.1 Reorder Point Planning
			Example
		18.4.2 Forecast-Based Planning
			Example
		18.4.3 Time-Phased Planning
			Example
	18.5 Summary
19 Forecasting
	19.1 Forecast Models
		19.1.1 Constant Model
		19.1.2 Trend Model
		19.1.3 Seasonal Model
		19.1.4 Seasonal Trend Model
	19.2 Forecast Parameters
		19.2.1 Create Forecast Profile
			Forecast Model
			Historical Periods
			Forecast Periods
			Number of Periods for Initialization
			Fixed Periods
			Number of Periods per Seasonal Cycle
			Initialization Indicator
			Tracking Limit
			Model Selection
			Selection Procedure
			Indicator for Parameter Optimization
			Optimization Level
			Smoothing Factors
	19.3 Forecast Options
		19.3.1 Manual Forecast Model Selection
		19.3.2 Automatic Forecast Model Selection
			Forecast Model
			Selection Procedure 1
			Selection Procedure 2
	19.4 Business Examples – Forecasting
		19.4.1 Forecast Models
			Example – Constant Model
			Example – Trend Model
			Example – Seasonal Model
			Example – Seasonal Trend Model
	19.5 Summary
20 Inventory Management Overview
	20.1 Goods Movements
		20.1.1 Stock Overview
		20.1.2 Material Document
		20.1.3 Movement Types
	20.2 Goods Issue
	20.3 Goods Receipt
	20.4 Physical Inventory
	20.5 Returns
		20.5.1 Introduction to Returns
		20.5.2 Creating a Return
		20.5.3 Configuring Reason for Movement
		20.5.4 Material Documents
	20.6 Reservations
		20.6.1 Introduction to Reservations
		20.6.2 Creating a Manual Reservation
			Movement Type
			Requirements Date
			Requirements Quantity
			Movement Indicator
			FI Indicator
			Deletion Indicator
			Debit/Credit Indicator
		20.6.3 MRP and Reservations
		20.6.4 Reservations Management Program
			Movement Indicator
			Days for Movement Default Value
			Retention Period in Days
			MRA Indicator
	20.7 Stock Transfers
		20.7.1 Stock Transfer and Transfer Posting
		20.7.2 Transfer Between Storage Locations Using Transaction MB1B
			One-Step Procedure
			Two-Step Procedure
		20.7.3 Transfer Between Plants Using Transaction MB1B
			One-Step Procedure
			Two-Step Procedure
		20.7.4 Transfer Between Storage Locations Using MIGO_TR
		20.7.5 Transfer Between Plants Using MIGO_TR
		20.7.6 Transfer Between Company Codes
	20.8 Business Examples – Inventory Management
		20.8.1 Physical Inventory
			Example
		20.8.2 Returns
			Example
		20.8.3 Reservations
			Example
	20.9 Summary
21 Goods Issue
	21.1 Goods Issue to a Production Order
		21.1.1 Planned Goods Issue Using MB1A
		21.1.2 Planned Goods Issue Using Transaction MIGO_GI
		21.1.3 Unplanned Goods Issue Using Transaction MB1A
		21.1.4 Backflushing
	21.2 Goods Issue to Scrap
		21.2.1 Goods Issue to Scrap Using Transaction MB1A
		21.2.2 Goods Issue to Scrap Using Transaction MIGO_GI
	21.3 Goods Issue for Sampling
		21.3.1 Goods Issue for Sampling Using Transaction MB1A
		21.3.2 Goods Issue for Sampling Using Transaction MIGO_GI
	21.4 Goods Issue Posting
		21.4.1 Material Document
		21.4.2 Accounting Document
		21.4.3 Goods Issue Slip
		21.4.4 Stock Changes
		21.4.5 General Ledger Account Changes
	21.5 Goods Issue Reversal
		21.5.1 Goods Issue Reversal with Reference to a Material Document
	21.6 Business Examples – Goods Issue
		21.6.1 Goods Issue to Scrap
			Example
		21.6.2 Goods Issue to Sampling
			Example
		21.6.3 Backflushing
			Example
	21.7 Summary
22 Goods Receipt
	22.1 Goods Receipt for a Purchase Order
		22.1.1 Goods Receipt with a Known Purchase Order Number
		22.1.2 Goods Receipt with an Unknown Purchase Order Number
		22.1.3 Goods Receipt Posting
			Material Document
			Accounting Document
			Goods Receipt Note
			Stock Changes
	22.2 Goods Receipt for a Production Order
	22.3 Initial Entry of Inventory
		22.3.1 Initial Inventory Load
	22.4 Other Goods Receipts
		22.4.1 Goods Receipt Without a Production Order
		22.4.2 Goods Receipt of By-Products
		22.4.3 Goods Receipt for Free Goods
		22.4.4 Goods Receipt for Returnable Transport Packaging (RTP)
	22.5 Business Examples – Goods Receipts
		22.5.1 Goods Receipt for a Purchase Order
			Example
		22.5.2 Goods Receipt Without a Purchase Order
			Example
		22.5.3 Goods Receipt for Returnable Transport Packaging (RTP)
			Example
	22.6 Summary
23 Physical Inventory
	23.1 Physical Inventory Preparation
		23.1.1 Preparations for a Physical Inventory Count
		23.1.2 Creating the Physical Inventory Count Document
			Posting Block
			Freeze Book Inventory
			Include Deleted Batches
		23.1.3 Printing the Physical Inventory Count Document
	23.2 Counting and Recounts
		23.2.1 Entering the Count
		23.2.2 Difference List
		23.2.3 Missing Material
		23.2.4 Recounts
	23.3 Physical Inventory Posting
		23.3.1 Posting the Count Document
		23.3.2 Posting a Count Without a Document
		23.3.3 Accounting of Inventory Differences
	23.4 Business Examples – Physical Inventory
		23.4.1 Physical Inventory Preparation
			Example
		23.4.2 Physical Inventory Posting
			Example
	23.5 Summary
24 Invoice Verification
	24.1 Standard Three-Way Match
		24.1.1 Entering an Invoice
			Invoice Date
			Amount
			Calculate Tax
			Purchase Order Number
		24.1.2 Simulate Posting
		24.1.3 Invoice Posting
	24.2 Evaluated Receipt Settlement
		24.2.1 Benefits of ERS
		24.2.2 Running the Evaluated Receipt Settlement
	24.3 Document Parking
		24.3.1 Benefits of Document Parking
		24.3.2 Parking an Invoice
	24.4 Variances
		24.4.1 Variances Overview
		24.4.2 Tolerance Limits
	24.5 Blocking Invoices
		24.5.1 Blocking Invoices
		24.5.2 Manual Block
		24.5.3 Stochastic or Random Block
		24.5.4 Block Due to Amount of an Invoice Item
		24.5.5 Block Due to Variance of an Invoice Item
	24.6 Releasing Invoices
		24.6.1 Releasing Invoices Automatically
	24.7 Business Examples – Invoice Verification
		24.7.1 Evaluated Receipt Settlement
			Example
		24.7.2 Variances
			Example
		24.7.3 Blocking Invoices
			Example
	24.8 Summary
25 Balance Sheet Valuation
	25.1 LIFO Valuation
		25.1.1 Configuration for LIFO
		25.1.2 Preparation for LIFO
			Material Master Records
			Base Layers
			Determination of Basis for Comparison
		25.1.3 Running a LIFO Valuation
	25.2 FIFO Valuation
		25.2.1 Configuration for FIFO
		25.2.2 Preparation for FIFO
		25.2.3 Running a FIFO Valuation
	25.3 Lowest Value Determination
		25.3.1 Lowest Value Determination Based on Market Prices
		25.3.2 Lowest Value Determination Based on Range of Coverage
		25.3.3 Lowest Value Determination Based on Movement Rate
	25.4 Business Examples – Balance Sheet Valuation
		25.4.1 LIFO Valuation
			Example
		25.4.2 FIFO Valuation
			Example
		25.4.3 Lowest Value Determination
			Example
	25.5 Summary
26 Material Ledger
	26.1 Material Ledger Overview
		26.1.1 Activating the Material Ledger and Actual Costing
		26.1.2 Benefits of Using the Material Ledger
	26.2 Material Ledger Data
		26.2.1 Material Master Record
		26.2.2 Data for the Material Ledger
	26.3 Material Price Determination
		26.3.1 Material Price Analysis
		26.3.2 Single-Level Material Price Determination
		26.3.3 Multi-Level Material Price Determination
		26.3.4 Transaction-Based Material Price Determination
	26.4 Business Examples – Material Ledger
		26.4.1 Material Ledger Overview
			Example
		26.4.2 Material Price Determination
			Example
	26.5 Summary
27 Classification System
	27.1 Classification Overview
		27.1.1 What Is the SAP ERP Classification System?
		27.1.2 Describing an Object
	27.2 Characteristics
		27.2.1 Create Characteristics
		27.2.2 Configuring Characteristics
			Characteristic Defaults
			Characteristic Status
			Value Templates
	27.3 Classes
		27.3.1 Create Classes
	27.4 Class Type
		27.4.1 Class Type Overview
		27.4.2 Configuring a Class Type
	27.5 Class Hierarchies
		27.5.1 Creating a Class Hierarchy
		27.5.2 Inherited Characteristics
	27.6 Object Dependencies
		27.6.1 Object Dependency Overview
		27.6.2 Dependency Creation
	27.7 Finding Objects Using Classification
		27.7.1 Classifying Materials
		27.7.2 Classifying Objects
		27.7.3 Finding Objects
	27.8 Business Examples – Classification
		27.8.1 Characteristics and Classes
			Example
		27.8.2 Finding Objects Using Classification
			Example
	27.9 Summary
28 Document Management
	28.1 Document Management Overview
	28.2 Document Information Record
		28.2.1 Document Number
		28.2.2 Document Type
		28.2.3 Document Part
		28.2.4 Document Version
		28.2.5 Document Status
	28.3 Creating a Document
		28.3.1 Create a Document
			Description
			Document Status
			Change Number
	28.4 Linking an Object to a Document
		28.4.1 Configuration for Linking Documents
		28.4.2 Linking a Document to a Material Master Record
		28.4.3 Linking a Document to a Vendor Master Record
	28.5 Documents and Classification
		28.5.1 Using Classification for Documents
	28.6 Business Examples – Document Management
		28.6.1 Document Information Record
			Example
		28.6.2 Linking an Object to a Document
			Example
			Acknowledgments
	28.7 Summary
29 Conclusion
	29.1 Lessons Learned
	29.2 Future Direction
Appendices
A Bibliography
B Glossary
C List of Materials Management Transaction Codes
D The Author
Index