Procurement with SAP MM: Business User Guide

1 . . . Management at a Glance . . . 15

1. 1 . . . Materials Management Overview . . . 16

1. 2 . . . Materials Management with SAP . . . 19

1. 3 . . . Materials Management Organizational Structures . . . 31

1. 4 . . . Summary . . . 37

2 . . . Master Data . . . 39

2. 1 . . . Importance of Master Data in Procurement . . . 39

2. 2 . . . Material Master . . . 40

2. 3 . . . Service Master . . . 49

2. 4 . . . Business Partners . . . 55

2. 5 . . . Vendor Hierarchies . . . 69

2. 6 . . . Source Lists . . . 71

2. 7 . . . Quota Arrangement . . . 74

2. 8 . . . Purchasing Info Records . . . 79

2. 9 . . . Pricing . . . 85

2. 10 . . . Taxes . . . 91

2. 11 . . . Other Master Data . . . 99

2. 12 . . . Summary . . . 101

3 . . . Planning and Forecasting . . . 103

3. 1 . . . Material Requirements Planning Procedures . . . 104

3. 2 . . . Master Data in Planning . . . 111

3. 3 . . . Forecasting . . . 122

3. 4 . . . Sales and Operations Planning and Flexible Planning . . . 135

3. 5 . . . Planning Execution . . . 143

3. 6 . . . Evaluation and Analysis . . . 147

3. 7 . . . Summary . . . 150

4 . . . Purchasing from Third Parties . . . 151

4. 1 . . . Requests for Quotation (RFQs) . . . 152

4. 2 . . . Outline Agreements . . . 159

4. 3 . . . Purchase Requisitions . . . 178

4. 4 . . . Purchase Orders . . . 182

4. 5 . . . Subcontracting . . . 193

4. 6 . . . Third-Party Orders . . . 209

4. 7 . . . Release Strategies . . . 212

4. 8 . . . Return Materials to Vendor . . . 221

4. 9 . . . Vendor Evaluation . . . 226

4. 10 . . . Reporting . . . 237

4. 11 . . . Summary . . . 251

5 . . . Intracompany and Cross-Company Procurement . . . 253

5. 1 . . . Classic Stock Transport Order Process . . . 253

5. 2 . . . Classic Cross-Company Code Stock Transport Order . . . 281

5. 3 . . . Stock Transport Orders with Stock In-Transit . . . 294

5. 4 . . . Summary . . . 325

6 . . . Kanban . . . 327

6. 1 . . . Kanban Procedures and Categories . . . 327

6. 2 . . . Master Data . . . 330

6. 3 . . . The Kanban Board and Signals . . . 336

6. 4 . . . Summary . . . 337

7 . . . Order Optimizing . . . 339

7. 1 . . . Investment Buying . . . 341

7. 2 . . . Quantity Optimizing . . . 343

7. 3 . . . Load Building . . . 347

7. 4 . . . Summary . . . 358

8 . . . Procurement of Services . . . 359

8. 1 . . . Processing Requirements . . . 360

8. 2 . . . Service Entry and Acceptance . . . 371

8. 3 . . . Using Outline Agreements for Services . . . 377

8. 4 . . . Summary . . . 380

9 . . . Inbound Logistics . . . 383

9. 1 . . . Confirmation Controls . . . 384

9. 2 . . . Order Acknowledgements . . . 388

9. 3 . . . Rough Goods Receipts . . . 392

9. 4 . . . Inbound Delivery: Shipping Notification . . . 395

9. 5 . . . Inbound Shipments . . . 419

9. 6 . . . Shipment Cost Document . . . 432

9. 7 . . . Summary . . . 438

10 . . . Inventory Management . . . 439

10. 1 . . . Overview . . . 440

10. 2 . . . Receiving . . . 442

10. 3 . . . Managing Special Stocks . . . 451

10. 4 . . . Transfer Postings . . . 456

10. 5 . . . Summary . . . 459

11 . . . Logistics Invoice Verification . . . 461

11. 1 . . . Invoice Processing . . . 462

11. 2 . . . Automatic Settlement . . . 477

11. 3 . . . Processing Subsequent Debits and Credits . . . 483

11. 4 . . . Cancelling an Invoice Document . . . 485

11. 5 . . . Summary . . . 486

. . . Appendices . . . 489

A . . . Procurement Tables . . . 491

B . . . Working with Procurement Documents: Quick Reference Guide . . . 501

C . . . Additional Resources . . . 513

D . . . The Authors . . . 515

. . . Index . . . 517