Movement type table in SAP is very important for functional specification preparation. SAP movement type table is mainly used to put any custom logic with movement type (BWART) key. SAP movement type description table is equally important. Many times client wants to display the description of movement type. At that time also the knowledge about the movement type tables help a consultant. In this post you will get the list of all tables and some sort of details for understanding purpose.

S.No.	SAP Movement type table	Movement type description	Comments
01	T156	Movement Type	This table is used to fetch the movement type key such as 101, 102, 201 etc.
02	T156T	Movement type description table in SAP (Movement Type Text)	If you want to display the description of the movement type then go for T156T.
03	T156A	Assignment of RP Account Posting Type to Movement Type	We can track the returnable packaging account postings
04	T156B	Movement Types: Screen Selection	Screen selection table. This table gets updated when we make screen specific change in SPRO for movement type.
05	T156C	Stock Types and Their Values
06	T156F	Fields in Quantity String
07	T156H	Help Texts for Movement Type (up to Rel. 2.0, then T157H)
08	T156HT	Main Text for Movement Type
09	T156K	Account Assignment Fields in Field Selection (up to 2.1)
10	T156M	Posting String: Quantity
11	T156N	Next Movement Type
12	T156Q	Movement Type: Material-Independent Control
13	T156S	Movement Type: Quantities/Value Posting (Until Rel. 4.5B)
14	T156SC	Mvt Type: Qty/Value Posting: Customer Table; as of Rel. 4.6A
15	T156SY	Mvt Type: Qty/Value Update: System Table; Rel. 4.6A
16	T156V	Availability Table
17	T156W	Posting string values
18	T156X	Trans./Event Key Modification

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Master data in SAP MM is the building block of all the logistics processes. It not only affects MM processes but also PM, QM, SD, FICO, PS and EHS module business processes. There are ten key master data in SAP MM. Please go through the list of master data in SAP MM and enhance your knowledge.

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List of master data in SAP MM

Master data in SAP MM are necessary for all the MM and other module’s business processes. There are ten important master data in SAP MM. All the logistics modules use Material Master; therefore, its quality must be good.

1. Material Master (“Product master” in S4 HANA)
2. Vendor Master (Business Partner)
3. Service Master
4. Purchase Info Record
5. Condition Master
6. Source List
7. Quota Arrangement
8. Class
9. Characteristics
10. Characteric values

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Consulting Tips and recommendations

In a full-lifecycle implementation project, master data plays a critical role. Poor design of master data and its nomenclature can completely derail the project. If you load garbage into the system, the system will throw garbage. “Garbage in – Garbage out“. You must take care of the following tips while designing master data with business:

1. Material Master Design is a joint activity between MM, SD, QM, FICO, PP, PM, and EHS.
2. Business Partner is introduced in SAP S4 HANA. It represents vendor master data. Vendor master design is a joint activity between MM and FI.
3. Nomenclature of Material Master, Service Master, and Vendor master id and their descriptions should be finalized as per predefined formulae. This is known as Cataloguing.
   • For ex: First 2 characters of material master should indicate material type such as Raw material, spare part or semi finished material. The next character can indicate its Function. Such as it is Air Circuit Breaker, Pump, Shocker, etc. Similarly you can decide the nomenclature of vendor master and service master. But you must do thorough study of master data before giving any recommendation. As per scope of project this activity can be done by client. You can only give consultation by showing examples.
4. Recommend client to develop a Material Cataloguing tools for generating material number. This Cataloguing helps business to identify and locate the material, vendor etc easily in SAP.
5. Finalize the Material type at the beginning of the blue print phase. So that purpose of each material type is clear to client. This will help them to prepare material master data in a correct form. Many times its has been observed that client gets confused between different material types.
6. Procedure to create the master data post go live must be defined during implementation itself. Responsible person at client side must be identified and all templates must be in place.
7. Do not forget to ask for material or vendor description in client local language.
   • For ex: If you are working for a German client then client may ask to enable master data uploading program to handle multiple languages such as German, Dutch etc.
8. Unit of measurement in material master is very critical. Generally people ignore it and later on it creates isue while doing business. Lot of SAP MM support tickets are created due to incorrect unit of measurement. You can use the additional data in material master.

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Master Data Dependency

Here is the list of master data in sap mm with the dependency of other data which must be created before we upload SAP MM related master data. Please refer below table to understand the dependency:

S. No.	Master data in SAP MM	Dependency on other master data
1	Characterisitcs	Unit of Measurement (UoM)
2	Class	Characteristics
3	Business Partner (Vendor or Supplier)	GL Account
4	Material Master	Profit Center, UoM,
5	Service Master
6	Purchase Info Record	Material master, Vendor (Supplier)
7	Condition Master	Material master, Vendor,
8	Source List	Purchase Info Record, Material, Vendor
9	Quota Arrangement	Purchase Info Record, Material, Vendor
10	Characterisitc values	Class, Characterisitcs, Material Master. It depends upon where we are assigning the characterisitc values.

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SAP MM Master data uploading

SAP MM Master data upload needs a proper strategy. You cannot plan it in a hustle. There are few ways we can do so. Please refer below table to understand various ways to upload MM master data. I have included only those ways which can be used by a functional consultant.

S. No.	List of master data in SAP MM	Master data upload approach/ tool
1	Material Master (or Product Master)	Migration cockpit LSMW MM17 SAP Data Service
2	Business Partner (Vendor Master)	Migration cockpit SAP Data Service
3	Purchase Info Record	Migration cockpit SAP Data Service
4	Source List	Migration cockpit SAP Data Service
5	Quota Arrangement	Migration cockpit SAP Data Service
6	Service master	LSMW BDC SAP Data Service
7	Condition Master	LSMW Migration cockpit SAP Data Service
8	Class	LSMW Migration cockpit SAP Data Service
9	Characterisitcs	LSMW Migration cockpit SAP Data Service
10	Characteristc values	Migration cockpit SAP Data Service

The post Master data in SAP MM | Consulting Tips appeared first on VaibhavERP.

After working 17+ years in SAP, providing training to more than 400 students I am writing this post to share critical and tricky SAP MM interview questions and answers. I am sure that this will help you not only to crack interview questions but also to face your client at all levels. This post is divided into different headings and sub headings to show topicwise SAP MM interview questions. It will solve your interview preparation problem. You can read it even one night before your interview. Please enjoy it and suggest to improvise it.

Here are the SAP MM interview questions:

Organization Structure in SAP MM

1. What is the purpose of Purchase Organization in SAP MM?

Ans. Remember following points related to purchase organization:

• All the procurement activities are executed under the umbrella of Purchase organization.
• All the negotiations on various conditions with suppliers are done at purchase organization level.
• A purchase organization can procure (or negotiate pricing conditions) for all company codes or a single company code and negotiates price and conditions of a material with supplier where it is being assigned.
• A purchase organization can also procure (or negotiate price conditions) material for plants where it is assigned.
• There are standard SAP Fiori reports available to monitor and track purchase activities at purchase organization level
• Procurement overview is a Fiori dashboard report (16 Fiori Cards) where we can fetch purchase reports (KPIs) at Purchase orgnization level

2. What is reference purchase organization in SAP MM? What is its use?

Ans. First of all do not try to remember the definition if reference purchase organization otherwise you will be confused and not able to conduct client workshop. Always explain reference purchase organization with the help of a business example.

For example:

• There is a company with several manufacturing plants and each plant has a local purchase organizations.
• Now if the company wants to do price negotations for buying Laptops, printers and mouses centrally and want each purchase organization to use the same price then they will use reference purchase organization.
• Reference Purchase organization will negotiate a comprehensive contract with a good price for Laptop, printers and mouses with supplier DELL.
• The other local purchase organizations can create release orders (PO) to buy laptop, printer and mouses with reference to the Contract create for Reference Purchase organization.

3. What are the pre requisites to use reference purchase organization in SAP MM?

Ans. To use reference purchase organization we need following configuration set up in SPRO:

• The purchase organization must be created in enterprise structure in SPRO
• The reference purchase organization must be created in enterprise structure in SPRO
• The purchase organization should be assigned to reference purchase organization in Enterpise structure in SPRO
• If you will not do the above assignment then user will not be able to create release order (PO) with reference to the comprehensive contract created by reference purchase organization
• Other than above setting we need material master and supplier master in place

4. Purchase group is assigned at to which organization element? Plant or purchase org or company.

Ans. Purchase group is not assigned to any organization element. It is a standalone organization element which represents buyer in purchase activities.

5. Suppose there is a storage location which is no longer in use or two storage locations merged into one storage location then what are the options available in SAP to handle such situation?

Ans. There can be such situations when we cannot delete the storage location because lot of transactions are already posted in SAP and we do so then it may result into a data inconsistency in data base. Therefore there is an option in SPRO where we can put a validity indicator. There are three options available. Please see below table to understand the impact of each storage location indicator:

S. No.	Indicator	Details
1	Blank -> Valid	It is a normal case when storage location is functional
2	E -> No longer valid	1. If we put this indicator then storage location will be invalid 2. Storage location will not appear in input drop down list (F4 help) 3. If user enters the storage location manually then system will throw an error message
3	W -> Deprecated	1. If we put this indicator then storage location will be invalid (deprecated) 2. Storage location will appear in input drop down list (F4 help) 3. If user enters the storage location manually in any transaction then system will throw a warning message

Others

Can you post physical inventory document for a new material in SAP or movement type 701 in SAP MM?

Ans. No you cannot. There should be at least one transaction posted for that material such as 561 or 101. Then only that material will be considered in physical inventory.

What is the prerequisite to create a source list?

Ans. Purchase info record must be created before we create a source list. Even if you try to create source list without purchase info record system will give you a message.

Which movement type is used for scrapping?

Ans. We can use movement type 551 for scrap process.

Suppose user wants to create a PO with alternate unit of measurement but system gives a message that purchase can be done only in the unit which is maintained in purchase view of material master? What will you do in such situation?

Ans. In order to create a purchase order in alternate unit of measurement we need to activate the field “variable purchase order unit“. Once this field is maintained with value ‘1‘ the purchase order can be created with alternate unit of measurements also.

What are different types of procurements?

Ans. There are three types of purchase:

1. Direct Purchase
2. Indirect Purchase
3. Service Purchase

Note: Generally people forget to include Service purchase while answering above question.

Suppose the warehouse received a material without PO on emergency basis and 501 movement is posted. Now how will you post invoice receipt? There is no PO.

Ans. This kind of issue can be solved in two ways:

1. User can post FB60 and create a vendor invoice and proceed further.
2. User can create a PO later on, cancel 501 movement posted and post a fresh GR with 101 movement type and ask supplier to send an invoice with reference to the PO.

Do not recommend to enter the bill of lading while posting 501 movement type because bill of lading field is removed from screen while posting GR with PO.

Is there any limitation on the creation of number of POs, PRs, GR posting and invoice postings in SAP?

Ans. Yes, there is limitation. Please read below points carefully.

• Once the number range is consumed we cannot create the documents any more. We need to archive the documents then only we can create new one.
• PR and PO items are limited to 99,999 items, because the item number has a maximum length of 5 digits.
• Also while posting invoice we can post only 999 items in one invoice. Afterwards, we have to post a new invoice. To overcome the 999 item limitation in invoice item, you can activate Extended Open Item Management.

You have created a PR and entered a PR text in PR item. This text contains some important information related to the material you want to purchase. This item text should be copied to PO item text also but it is not happening. How will you solve such issue?

Ans. There is a configuration in PR and PO where we can set the copy rules. Please check below path in SPRO:

Material Management > Purchase > Purchase order > Text for Purchase order > Define copy rules for item text

The unit of measurement related conversion is well maintained in the purchase info record but still the conversion is not working while creating purchase order?

Ans. The purchase order will take the Order unit which is maintained in Purchase tab of material master. If you want the purchase info record UoM conversion factor to work then you have to maintain the unit of measurement conversion in material master additional data also.

In SAP S4 HANA how can we generate a PR from MRP with automatic assignment of supplier in PR without source list?

Ans. In the Purchase Info record there is a check box auto sourcing. If this check box is ser then the vendor will auto popiulate in PR triggered from MRP. No need to maintain the supplier in source list with MRP indicator.

What is the purpose of GR/IR account in SAP?

Ans. The GR/IR account is used to show the temporary liability in system. Normally when we buy any goods from market then accounts entry goes like this -> Inventory Account Debit and Vendor Account Credit. But we do not receive the invoice by that time so we create a temporary liability in GR/IR accoiunt and this account entry gets cleared or reversed when we post invoice in system.

The post SAP MM Interview questions and answers appeared first on VaibhavERP.

Movement types in SAP MM

Movement types in SAP MM and movement type tables in SAP are most important feature to understand in inventory management. It involves SAP MM, SD, PP, PM and QM. It also has impact on FICO for accounts update. Let us understand the concept and details of features step by step. I hope you will like the information and bookmark this blog post.

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Jump on content

1. Overview of movement types
2. List of movement types
3. Movement type table in sap

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Overview of movement types in SAP MM

All logistics modules in SAP use movement types. Movement types in SAP MM ensures the tracking of inward and outward movement of goods (or material) and also capture the purpose of that goods movement. It tells us:

• whether material is moved inside or outside the warehouse
• purpose of material movement (consumption or stock).
• accounts updated in Finance (Debit/ Credit).
• fields displayed on screen while entering material document in system

List of movement types in SAP MM

There are more than 300 goods movement types in SAP MM. These movement types are used in all logistics modules such as MM, SD, PP, PM, QM. All the inventory management related business process includes goods movement.

Change in stock is outcome of goods movement. This change can be incremental, reduction or transfer.

Movement types in SAP MM indicates the incoming and outgoing material movement with quantity and value (if applicable)

• Each movement type has its own purpose
• It is represented as a three digit alphanumeric key

101 movement type in SAP

101 movement type in SAP is most frequently used movement type in any enterprise:

• Goods movement against a Purchase order
• Quantity in unrestricted stock increases
• Inventory account Debited and GR/IR Credited
• Material can be moved to Quality stock if we have quality view activated with required settings in material master

102 movement type in SAP

It is Goods Receipt for PO reversal. Suppose there is an incorrect 101 movement is posted then 102 is used to reverse the posting.

103 movement type in SAP

103 movement type in SAP is used to show that material is received in the plant but you do not want to show it in stock.

• GR against a Purchase Order
• Quantity increases in GR blocked stock (not blocked stock)
• No accounting document posted
• Invoice can be posted after a 103 movement but the invoice will automatically be blocked for payment due to the qty variance
• Not applicable for Stock Transport Order
• 103 movement type in SAP is used to receive the material without taking ownership of material. Hence no liabilities created aganist the supplier

104 GR to blocked rev.

It is reversal of 103 movement type

105 GR from blocked stck

106 GR from blocked rev.

107 GR to Val. Bl. Stock

108 GR to Val.BlS Cancel

109 GR frm Val.Bl.Stock

110 GR fr Val.BlS Cancel

121 GR subseq. adjustm.

122 movement type in SAP

• 122 movement type in SAP is used to return a material to vendor
• Sometimes user try to post 102 movement to cancel the 101 movement but that is not recommended
• 122 movement type allows to capture the reason of movement which is not possible in 102 cancellation
• This reason of movement is helpful in reporting
• 122 movement is posted aganist the material document created while posting 101 movement for the Purchase order or production order
• The transaction used is Return delivery
• Accounting document is also posted while posting 122 movement

123 RE rtrn vendor rev.

124 GR rtrn blocked stck

125 GR rtn blkd stck rev

131 Goods Receipt

132 Goods Receipt

141 GR G subseq. adjustm

142 GR G subseq. adjustm

161 movment type in SAP

• 161 movement type in SAP is used to post vendor returns with reference to return PO
• User has to create a return PO and set the return check box for the PO item
• Delivery cost can be added to return PO which can change the valuation while updating accounts
• using 161 movement type you cannot return to production department

162 GR rtrns reversal

167 GR Ret.frm Val.BlStk

168 GRRet fr ValBlS Rev.

169 GR Ret. to Val.BlStk

170 GR Ret to ValBlS Rev.

201 GI for cost center

202 RE for cost center

221 GI for project

222 RE for project

231 GI for sales order

232 RE for sales order

241 GI for asset

242 RE for asset

251 GI for sales

252 RE for sales

261 movement type in SAP

262 movement type in SAP

• Material in the warehouse which is issues with 261 movement type is returned with 262 movement type
• If you want to return the material using the PP or PM order then simply go to Component tab and enter the material id and quantity in negative.
• Negative quantity in order will allow posting of 262 movement type

281 GI for network

282 RE for network

291 GI all acc. assigmts

292 RE all acct assigmts

301 TF trfr plnt to plnt

302 TR trfr plnt to plnt

303 TF rem.fm stor.to pl

304 TR rem.fm stor.to pl

305 TF pl.in stor.in pl.

306 TR pl.in stor.in pl.

309 TF tfr ps.mat.to mat

310 TR tfr ps.mat.to mat

311 TF trfr within plant

312 TR transfer in plant

313 TF rem. fm str. to SLoc

314 TR rem. fm str.to SLoc

315 TF pl.in str.in SLoc

316 TR pl.in stor.in SLoc

317 Create struct. mat.

318 RE create struc. mat

319 Split structured mat

320 RE split struct. mat.

321 movement in SAP

322 TR quality to unr.

323 TF quality in plant

324 TR quality in plant

325 TF blocked in plant

326 TR blocked in plant

331 GI to sampling QI

332 RE to sampling QI

333 GI to sampling unre.

334 RE to sampling unre.

335 GI to sampl. blocked

336 RE to sampling blkd

340 Batch revaluation

341 TF unrestr.to restr.

342 TF rstricted to unr.

343 TF blocked to unre.

344 TR blocked to unre.

349 TF blocked to QI

350 TR blocked to QI

351 TF to stck in trans.

352 TR to stck in trans.

401 TP own from sls.ord.

402 TP own to sales ord.

403 TP own from consgt.

404 TP own to consgt.

405 TP own from project

406 TP own to project

411 TF SLoc to SLoc

412 TR SLoc to SLoc

413 TF SLoc to sls order

414 TR SLoc to sls order

415 TF SLoc to project

416 TR SLoc to proj.

417 TF IssVlCST to IssPl

418 TFRt IsVlCST to IsPl

419 TF SLoc to SLoc

420 TR SLoc to SLoc

421 TF SLoc to SLoc

422 TR SLoc to SLoc

423 TF SLoc to SLoc

424 TR SLoc to SLoc

425 TF SLoc to SLoc

426 TR SLoc to SLoc

427 TF SLoc to SLoc

428 TR SLoc to SLoc

429 TF SLoc to SLoc

430 TR SLoc to SLoc

441 TP unrstr.to tiedEmp

442 TP tiedEmp.to unrstr

451 GI returns

452 RE returns reversal

453 TP returns to own

454 TP own to returns

455 TF st. trfr returns

456 TR st. trfr returns

457 TP Returns to own QI

458 TP Own QI to returns

459 TP Ret. to own blckd

460 TP Own blckd to ret.

501 Receipt w/o PO

502 RE receipt w/o PO

503 Receipt to QI

504 RE receipt to QI

505 Receipt to blocked

506 RE receipt to blockd

511 Delivery W/o Charge

512 RE deliv. w/o charge

521 Receipt w/o order

522 RE receipt w/o prOrd

523 Rcpt QI w/o prOrder

524 RE quality w/o prOrd

525 Rcpt blkd w/o pr.ord

526 RE blocked w/o PrOrd

531 Receipt by-product

532 RE by-product

533 GI by-product

534 RE by-product

535 GR by-prod. sls.ord.

536 GR by-prod. sls.ord.

541 GI whse to subc.stck

542 RE subctrStck toWhse

543 GI issue sls ord.st.

544 GI receipt sls or.st

545 Rcpt SC by-product

546 GI issue SC by-prod.

551 movement type in SAP MM

• 551 movement type in SAP is used to declare a material in unrestricted stock as scrap
• Material is issued from unrestricted stock
• When business wants to show the $ value of rejected or damaged material in accounts they use 551 movement type
• It creates an accounting document and updates the scrap GL account
• 551 movement type does not update the moving average price in material master because the scrap has been removed from inventory and accounted in a separate GL account
• Material is issued from warehouse in this movement and stock reduces
• Be carefull while giving authorization of this movement type because there can be missuse of this movement to adjust inventory quantity to avoid cycle count

552 RE scrapping

553 movement type in SAP

• 553 movement type in SAP is used to declar the quality stock as scrap
• When a material is under quality inspection and found not upto the mark then the material may be declared as scrap
• Generally quality department uses this movement type.

554 RE scrapping QI

555 movement type in SAP

• 555 movement type in SAP is used to declar the blocked stock as scrap
• When a material is rejected due to some reason then warehouse incharge can take decision to scrap it or return it
• Sometime return to supplier cost is very high so it is better to declar it as scrap then 555 is used to declare blocked stock as scrap
• Sometime a chemical lost its properties and becomes unusable over a period of time. The warehouse people put it into blocked stock. Lateron warehouse incharge declare it as scrap.

556 RE scrapping blocked

557 GI adjust. transit

558 GI adjust. transit

559 GI Adj. Val. Bl.Stk

560 RE Adj. Val. Bl.Stk

561 Initial stock entry

562 RE in.entry stk bals

563 Init. entrStBals: QI

564 RE EntrStBals: QI

565 In.EntrStBals: blckd

566 RE EntrStBals: blckd

571 Receipt assembly

572 RE receipt assembly

573 Rcpt QI assembly

574 RE rcpt QI assembly

575 Rcpt blckd assmbly

576 RE rcpt blkd assmbly

581 Rcpt by-prod network

582 RE by-prod. network

601 movement type in SAP

602 RE goods deliv. rev.

It is reversal of 601 movement type

603 TF rem.fm stor.to pl

604 TR rem.fm stor.to pl

605 TF pl.in stor.in pl.

606 TR pl.in stor.in pl.

617 Cre. Str. Mat. Cons.

618 RE Cr. Str. Mat. Con

619 Rem. Str. Mat. Cons.

620 RE Rem. Str Mat Cons

621 GI ret.pack.:lending

622 GI ret.pack:ret.del.

623 GI iss:cust.ret.pack

624 GI rcpt:cust.re.pack

631 GI consgmt: lending

632 GI consgmt:ret.delvy

633 GI iss: cust.consgmt

634 GI rcpt:cust.consgmt

635 TF Consgmt Lending

636 TR consgmt ret. del.

641 TF to stck in trans.

642 TR to stck in trans.

643 TF to cross company

644 TR to cross company

645 TF cross company

646 TR cross company

647 TF to stck in trans.

648 TR to stck in trans.

651 GD ret.del. returns

652 GD ret.del. retn rev

653 GD returns unrestr.

654 GD returns unr. rev.

655 GD returns QI

656 GD returns QI rev.

657 GD returns blocked

658 GD returns blk. rev.

661 GI returns to vendor

662 RE ret. to vdr revrs

671 TR to stck in trans.

672 TF to stck in trans.

673 TR to cross company

674 TF to cross company

675 TR cross company

676 TF cross company

677 TR to stck in trans.

678 TF to stck in trans.

681 TF to Iss. Val. CST

682 TF Ret fr.Iss.Val.CST

683 TF to Rec. Val. CST

684 TF Ret.fr Iss.Val CST

685 TF fr Iss. Val. CST

686 TFRet to Iss Val.CST

687 GM Del to Iss Val SiT

688 RE fr Iss. Val. SiT

691 TF Ret fr.Iss.Val.CST

692 TF to Iss. Val. CST

693 TF Ret.fr Iss.Val CST

694 TF to Rec. Val. CST

695 TF Ret to Iss Val.CST

696 TF fr Iss. Val. CST

701 GR phys.inv.: whse

702 GI phys.inv.: whse

703 GR phys.inv: QI

704 GI phys.inv: QI

707 GR phys.inv.:blocked

708 GI phys.inv.:blocked

711 GI InvDiff.:whouse

712 GR InvDiff.:wrhouse

713 GI InvDiff: QI

714 GR InvDiff: QI

715 GI InvDiff.:returns

716 GR InvDiff.:returns

717 GI InvDiff.: blocked

718 GR InvDiff.: blocked

721 SlsVal.rec.n.afftMgs

722 SlsVal.iss.n.afftMgs

731 SlsVal.rec. afftgMgs

732 SlsVal.iss. afftgMgs

801 GR adv. inv. + tax

802 RGR ad. inv. + tax

803 GR AI ICMS/IPI

804 RGR AI ICMS/IPI

805 GR bl. AI w. tax

806 RGR bl. AI w. tax

811 GR TP dely w. tax

812 RGR TP dely w tax

815 GR B TP dely w. tax

816 RGR B TP dely w. tax

821 GR val. VS w. tax

822 RGR val. VS w. tax

825 GR B val. VS w. tax

826 RGR B val. VS w. tax

833 Reval. iss. w. tax

834 R reval. iss. w tax

835 Reval. rec. w. tax

836 R reval. rec. w tax

841 GR RTP

842 RGR RTP

843 GR RTP w. tax

844 RGR RTP w. tax

861 GR TF SD/MM

862 GI TF SD/MM

863 GI TF SD/MM return

864 GR TF SD/MM return

901 GI internal c.center

922 RE return to vendor

30A ST Remove to SC

30B SR Remove to SC

30C ST Put Away to SC

30D SR Put Away to SC

63A ST Consig. Borrow OA

63B ST Consig. Return OA

63C ST Consig. Borrow PA

63D ST Consig. Return PA

64A ST Transfer SC Order

64B SR Transfer SC Order

68A TF to Iss. Val. IST

68B TFRet fr Iss.Val.IST

68C TF to Rec. Val. IST

68D TFRet fr RecVal IST

68E TF fr Iss. Val. IST

68F TFRet to Iss.Val IST

68I TF fr Iss. Val. IST

68J TFRet to Iss.Val IST

69A TFRet fr Iss.Val.IST

69B TF to Iss. Val. IST

69C TFRet fr RecVal IST

69D TF to Rec. Val. IST

69E TFRet to Iss.Val IST

69F TF fr Iss. Val. IST

69I TFRet to Iss.Val IST

69J TF fr Iss. Val. IST

6A1 TF GI1

6A2 TR GI1

6A3 TF CC GI1

6A4 TR CC GI1

6A5 TF CC GI1

6A6 TR CC GI1

6A7 TF GI1

6A8 TR GI1

6B1 TF GI2

6B2 TR GI2

6B3 TF CC GI2

6B4 TR CC GI2

6B5 TF CC GI2

6B6 TR CC GI2

6B7 TF GI2

6B8 TR GI2

6K5 TF GI2 Consi

6K6 TR GI2 Consi

6W5 TF GI1 Consi

6W6 TR GI1 Consi

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Business Processes in SAP MM

Here is the list of business processes in SAP MM. The list is subdivided into three parts:

1. Purchase,
2. Inventory management and
3. Invoice verification

Purchase

Here is the list of purchase related business processes in SAP MM:

Normal Purchase Scenarios

1. Request for quotation
2. Purchase Requisition
3. Purchase order
4. Raw material purchase
5. Asset Purchase
6. Service Purchase
7. Centralized purchase (Centralized contracts)
8. Outline Agreement
   • Contract
   • Scheduling Agreement
9. Release Strategy in PR, PO and Outline Agreement
10. Consumption based planning – MRP (Reorder Planning)
11. Split Valuation

Special Purchase Scenarios

1. Third Party Purchase
2. Subcontracting process
3. Consignment Process
4. Pipeline material purchase
5. Stock Transfer Order (STO)
   • Inter Plant Stock transfer
   • Inter Company Stock transfer

Inventory Management

Here is the list of inventory management related processes:

1. Goods movement
   • Goods Receipt (and reversal)
   • Goods Issue (and reversal)
   • Free of Charge Material (FoC)
   • Scrapping Process
   • Block material
   • Transfer postings
   • Goods movement with Quality Inspection
   • Vendor returns
2. Physical Inventory and Cycle Counting
3. Serial number management
4. Reservation
5. Manage special stocks
6. Inbound delivery or Advance Shipping Note
7. Service Entry Sheet

Invoice processing

List of process in invoice processing:

1. Invoice Posting
2. Invoice parking
3. Invoice Block and Release
4. Purchase order down payment
5. Evaluated Receipt Settlement (ERS)
6. 3 way matching
7. Credit Memo
8. Debitmemo
9. Subsequent delivery
10. Create consignment and Pipeline settlement

Other Business Processes

1. Batch Management
2. Vendor evaluation
3. Accounts maintenance (GR/IR)
4. Month end activities management

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Introduction

Here I am sharing my SAP Implementation experience and learnings in one post. This post will help you if you are working in SAP MM Implementation project. This post is a summary of important things to remember while implementing SAP MM module. It will help you to reduce mistakes and save time.

Things to remember in SAP MM Implementation

1. Material type is finalized first in any SAP MM implementation project. Material types for all logistics modules should be finalized in the blue print phase and its integration with FICO should be discussed at the begining.
2. While doing an implementation project always remind client to pay attention on the unit of measurement because in the legacy system (Old one) there could be different units and those units are not available in SAP. You might have to create new UoM.
3. If user wants to create PO in alternate unit of measurement then activate variable puchase order unit in Purchase view of material master.
4. PO print needs lot of logic for different processes and different set of vendors. Always ready to make changes in it. Even just before go live also.
5. Providing correct price of material is a challenge for your client because it is maintained at various places in their legacy system. Even they are not sure which one is the correct one. Give them alert at the begining of implemntation.
6. Many clients does not take purchase info records seriously at the begining of project. You can tell its importance for PO print because sometime PO print needs information from purchase info record.
7. Never ignore SAP MM master data. Never hand it over to master data team (MDM). Support from functional consultant is necessary.
8. If material master fails, entire project will fail. Support MDM and Client by giving them proper direction in master data preparation. But do not touch their master data.
9. MRP is a part of PP module but MM conultant can take ownership of reorder (VB) MRP. Thi can help the maintenance department in spare part planning.
10. Do not forget to study the existing (legacy) system which your client is using. This will help you to raise new questions to your client on business process mapping.
11. Study of legacy system can help you to check the additional features and minor logical thing you need to implement in SAP.
12. Open Purchase orders is a part of open transactions. Work with Finance team rigorusly on open purchase order with account assignment from the begining of the project. Most of the consultants bring it at the last moment.
13. Do not upload open PRs as a part of open transactions data. Create them manually.
14. If the count of open PRs is very high then upload them. But make sure that there should not be any release strategy associated with open PR document type.
15. You must build expertise in LSWM to upload data in SAP. LSMW saves you from critical situations during and after master data upload.
16. Genrally people think that MM17 is used only for masss change of material master. But remember that you can create material master using MM17.
17. Whenever you plan any workshop with client then prepare the data in advance and run the end to end cycle multiple times. Plan everything at least two days before workshop.
18. Never plan workshop of 5 business processes in 5 days. You won’t be able to cover 5 processes in 5 days because your own preparation to explain the S4 details take time.
19. If you are working on a S4 HANA Public cloud implementation project then alwyas remember that not all scenarios run smoothly in public cloud. It needs a lot of preparation for simple processes before you go to client for the workshop.
20. Features and screens are different in S4 HANA public cloud therefore never promise anything to your client unless you build a PoC on it.
21. In S4 HANA Public Cloud there very limited configuration available to change. Therefore always check the configuration thoroughly before making any promise to client
22. Release stratrgy is not applicable to open purchase transaction data such as Purchase Order, Contract, Purchase Requisition etc.
23. Always recommend client to do physical inventory before go live and then only provide the inventory balances to upload.
24. Try to make a contact with end users also during realization phase. End users can give you some unique inputs which core team can’t give.
25. Take multiple round of client warehouse and understand how different types of materials are managed and stroed in warehouse. This will help you to design and define the storage locations.
26. Scrap process needs special attenion because end ot end process involves selling of scrap process. So check the coverage of process with client by involving Sales team also.
27. Subcontracting process involves some special situations also such as scrap generated during subcontracting, additional material povided by subcontractor etc. Never assum that your client has a standard subcontracting. So discuss it in details and create the BoM accordingly.
28. Some times involvement of PP consultant is critical in subcontracting process because BoM related features are know to them better than MM consultant and BoM feautures helps to map complex processes.
29. Purchase related reporting is an important aspect of any SAP Implementation. Therefore study all the PO related Fiori reports thoroughly before going to client. You can say that PO report can tell you “how many POs quantities are yet to be delivered?, how many POs are yet to be invoiced?“, “How many open POs are there?“. All such statements can help you to build truct in your client.
30. In case of contract client is interested to know “How many contracts are going to expire in next 30 days?” or “How much value of contract leakages or Off contract spendings are there?“.
31. You can refer Procurement overview Fiori report which as a lot of Fiori cards to answer client quesries mentioed above in point 28 and 29.
32. GR based invoice verification check box in PO item can do a lot of things in purchase cycle. Explain its importance to client thoroughly.
33. Do not activiate GR based invoice verification check box in open purchase orders because there can be POs which are partially delivered or partially invoice or fully delivered but not invoiced. If you activate the GR based invoice and GR quantity does not match then invoice posting will into error during hyper care.
34. Do not make GR based invoice verification default and grey out this at the begining of project (Go Live). Keep it editable and not set for open POs. Open POs need this check box to be removed otherwise invoice can go into error for partial GR cases. Once things are stablized you can mark the GR based invoice verification by using LSMW. But if you have made it grey then you need to move a TR to make it editable.
35. There are some business situations where invoice is posted before GR posting. In such situations also do not set GR based invoice verification chedk box otherwise invoice posting will go into error.
36. Sometime business situation demends an invoice posting without PO. In such circumstances post the invoice for the material directly to the GL account.
37. To achieve the business situation mentioned in above point you need to configure -> “Activate Direct Posting to G/L Accounts and Material Accounts” in SPRO.
38. Lean services in SAP is a latest innovation launched by SAP for service purchase. You need to prepare well about it before conducting any client workshop. At Client side production and maintenance people do not understand the concept of lean services easily. So prepare well for it. make a good quality presentation with examples of service purchase from production and maintenance point of view.
39. Always keep production, maintenance and sales team in loop when you make a certain filed mandatory in PR screen because the field will become mandatory in the production order, maintenance order and sales order also and can create issues while saving that order. For ex: If you make Tracking number or requisitioner as mandatory field in PR screen then this field will become mandatory in order screen also because SAP can trigger PR from production order, maintenance order or Sales order.
40. Blanket Purchase order (Framework Order) is a very good feature in procurement. In this type of order you can post the invoice directly with out posting GR. Always recommend this feature when client is doing business with their sister concern/ parent organization or with a low value goods/ services.
41. Procurement business processes can be divided into two parts -> Direct purchase and Indirect Purchase
42. Movement type is critical term in inventory management. Whenver you write any FS do not forget to consider reversal also in the logic. For ex: If you are considering 101 movement then do not forget to consider 102.
43. Always recommend your client to include goods movement reversal, PR and PO deletion process in the end user training because during hypercare of a project end users posts many wrong transactions. Therefore, Training must include reversal and deletion process.
44. The accounting view of material master needs lot of explaination to client. Also try to convience client not to change the valuation class of material post go live. Many clients try to change the valuation class as per the business requirements post go live. it is not a good practice.
45. Use UNBW material type to manage unvaluated material such as tools or material purchased as an asset. Explain the business significance of this material type to client because many clients need them in certain business situations. For ex: material considered as an Asset. Once received asset is capitaized and the material has zero valuation.
46. If manufaturer has to be added with the material then recommend to use the manufacturer profile in materil master. Do not add any custom field. Sometime client wants to display manufacturer in PO print. in rare cases we add the manufacturer as a custom field in PO screen.
47. Explain the difference between material type and material groups because if client is using any other ERP software then they get confuse what to fill up in material group. Client thinks that it is OK to fill up same information in material group and material type. You can give examples of material groups to make client understand.

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Definition – Subcontracting

• Subcontracting process in SAP MM is a special procurement process where a manufacturer outsources the whole manufacturing process or a part of it by sending the components of a machine or assembly to its supplier
• The supplier builds/ assemble the machine with components and returns the final product to the manufacturer
• The supplier charges for the services which it has performed to build or assemble the final product
• Generally we send the raw material components to the supplier and receive the semi-finished material as the final product
• Subcontracting process in SAP MM needs not only knowledge about SAP settings and configuration but also business knowledge. This post will help you to gain both.

Business Examples of Subcontracting Process

Here are few real time business examples of Subcontracting in SAP MM. It will definitely help you to make a understanding of business. In the next section we will discuss the mapping of subcontracting process in SAP.

• Assembling of bicycle: Suppose a bicycle manufacturer has a huge order to manufacturer but they do not have enough facility to build bicycles at such a huge level. So they will take help from a subcontractor to do the assembling job. The bicycle manufacturer can send the components (or parts) of the bicycle to the supplier (or subcontractor). The supplier will do the necessary assembling and return the bicycle (final product). Below is the list of bicycle components which a manufacturer can provide to a subcontractor for assembling.

• Main frame,
• Handle,
• Tyres,
• Seat,
• Chain,
• Pedals,
• Brake

The supplier will assemble the parts of a bicycle in its premises and return the complete bicycle to original manufacturer. The parts of bicycle will be use by supplier to make the final bicycle. On receiving the bicycle, its components will be consumed from the warehouse and stock of bicycle will increase.

Business knowledge will help you to crack SAP MM interview questions and client facing roles.

Fiori Apps to run Subcontracting Process

1. Create Subcontracting Purchase Rerquisition manually: We can create a subcontracting PR with item category ‘L‘ using a Fiori App “Process Purchase Requisition“. Please note that this Fiori App was formerly known as “Manage Purchase Requisitions”.
   • Subcontracting Purchase Requisition created by MRP: Purchase requisition can also be created automatically through MRP by using Fiori App “Schedule MRP run“.
2. Create Puchase Order: Purchase requisition can be converted into a Purchase order by using Fiori App “Process Purchase Requisition“.
   • Purchase order can also be created directly with item category ‘L’ using FIori App “Manage Purchase Orders” or “Create Purchase order”.
3. Transfer Posting: In this step we can post goods issue to transfer BoM components to subcontractor. We can do it by using FIori App “Subcontracting Cockpit“. Earlier this step was known as Post goods issue step.
4. Receive Final material from subcontractor: Once the assembling work is completed we can receive the final material in our plant by posting a goods receipt with reference to the Purchase order. We can use Fiori App “Post Goods receipt for Purchasing Document“. Once posting is done the BoM component stock reduces and final product stock increases.
5. Create Supplier Invoice: We can post invoice receipt using Fiori App “Create Supplier Invoice“. First simulate an then make the actual posting.

SAP T codes to run Subcontracting Process

1. ME51N for PR creation: User can create the subcontrcting purchase requisition with t code ME51N. Here user can select the item catgory ‘L’.
2. ME21N for PO creation: A Subcontracting Purchase order is created with reference to a PR usingt code ME21N. Here also make sure that item category is ‘L’.
3. MIGO for transfer posting: Use t code MIGO for transfer posting to issue the BoM components to the supplier. Transfer posting is executed with reference to subcontracting PO and movement type 541.
4. ME2O for transfer posting: Use can also use t code ME2O to post goods issue to a supplier with reference to a subcontracting PO. Choose green line item, select it’s check box and click on the Post Goods Issue button on header of the report output and it will post the BoM components to supplier.
5. MIGO to receive the final product: Once the subcontracting work is finished the supplier will send the final product to the manufacturer. At the manufacturer premises user can receive the final product by posting goods receipt with movement type 101 in t code MIGO with reference to the subcontracting PO.
6. MIRO for invoice receipt: User will receive the final invoice from subcontractor for the services executed by supplier. The t code MIRO is used to post subcontracting invoices.

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Introduction

Split valuation in SAP MM is one of the most asked question in SAP MM interviews. It is important for every organization because accounting department always wants to valuate the material as per different criteria. In interviews many time interviewer asks question indirectly and twist the wordings of questions. This article will help you to understand:

• knowledge in split valuation in SAP MM
• business examples
• master data required
• configuration settings
• important Fiori apps and
• the business benefits of this process

Definition

Split Valuation in SAP MM provides a flexibility for business to valuate their stock in different ways in a valuation area (generally valuation area is Plant). It means that a material (or product) can have different values in the same valuation area (or plant).

There can be various reasons of different valuations:

1. Same material but different status (or condition)
2. Same material but different origin
3. Same material but different grades
4. Same material but produced in-house and external procured

If a material is subject to split valuation, the material is managed as several partial stocks, each partial stock is valuated separately.

Split Valuation – Business examples

Here are few busines examples to build proper understanding of split valuation in SAP MM module. You can get detailed business knowledge on split valuation here in below points:

• Different status of material
• Different origin of material
• Different grades of material
• In-house produced or externally procured

Different status (or Condition) of material

• Different status (or Condition) of material: In maintenance department there are lot of spare parts or machines with cobdition good, damage or refurbished. Material is same but condition is different. So the value (or Price) of the spare part or machine with good condition will be different from damaged and refurbished material.
• For example: An Electric Motor’s material code is M100342. The value (or Price) of M100342 for valuation area (or Plant) 1000 can be 2000 USD for Good condition. 500 USD for a Refurbished condition and 2 USD for a Damaged condition.
• We can define three valuation types :
  • New,
  • Refurbish,
  • Damage

Different orgin of material

• Different orgin of material: In the production department there are different types of raw materials which play a pivotal role in product building. These raw material can have origin from overseas or domestic. As per the origin valuation of the raw material can vary.
• For example: A raw material such as Bituminus coal with material code B178002 is purchased from a domestic supplier at a price of 100 USD per unit and from an overseas supplier at a price of 90 USD per unit. Due to some country specific regulations and rules we cannot buy Bituminus coal from the overseas supplier beyond certain limit. So we have same material but with different values and this difference is due to the origin of the material.
• Bituminous coal is a middle rank coal between subbituminous and anthracite. Bituminous coal usually has a high heating (Btu) value and is used in electricity generation and steel making in the United States.
• We can use split valuation by defining two valuations types-
  • Domestic and
  • Overseas

Different grades of material

• Different grades of material: Material with different grades also results into split valuation. Many plants use the raw material or semi finished goods with different grades. Material can be a coal, steel, concrete or cement.
• For example: There are three different grades of Ordinary Portland cement available in the market, which are grade 33 (IS:269), grade 43 (IS:8112), and grade 53 (IS:12269). Each grade has its own application in construction industry. As per the grade the price also varies but material is same. So we can capture different prices of this cement for each grade 33, 43 and 53 in form of split valuation. The price of Grade 33 material price is 100 INR per kg. 80 INR and 50 INR per kg for Grade 43 and 53 respectively. So the split valuation allow user to maintain these three price values for same material.
• We can use split valuation by defining three valuation types-
  • Grade 33
  • Grade 43
  • Grade 53

In-house produced or externally procured

• In-house produced or Externally procured: Sometimes manufacturer produces semi finshed materials in its own facility and sometime purchased it from a supplier. Material is same but the cost of in house production will be different from externally procured material. So split valuation comes into picture.
• For example: There is an electrical industrial products manufacturing company. It is producing a industrical switchboard. The switchboard needs many parts such as frame, bus, overcurrent protective devices, sensors, LEDs, instrumentation, enclosures and exterior covers. Sensors can be produced in-house as well as procured externally. In-house produced sensors can be produced at a cost of 10 USD and externally procured sensors may cost 12 USD. As per the demand and supply business will take decision on production and procurement. So the split valuation allow user to maintain these two price values for same material.
• We can use split valuation by defining two valuation types-
  • In-house
  • External

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