Materials Management covers all tasks within the supply chain, including consumption-based planning, purchasing, vendor evaluation, and invoice verification. It also includes inventory and warehouse management to manage stock until usage dictates the cycle should begin again.
The purpose of the MM-Materials Management module is to provide detailed support for the day-to-day activities of every type of business that entails the consumption of material.
Materials Management
Fundamental Guide to SAP Procurement Processes
Definition and Configuration of Split Valuation in SAP
Though known by many users, Split Valuation’s functionality is not known well by everyone. Split Valuation allows substocks of the same material to be managed in different stock accounts. This allows substocks to be valuated separately, and every transaction is carried out at the substock level. So, when processing a transaction, it is necessary to mention the substock. Split valuation requires that you have the Materials Management and Finance modules implemented. It also helps management accountants to get accurate information of actual value and and cost of particular stocks.
The split valuation is necessary if the material has:
- Different Origins
- Various Levels of Quality
- Various Statuses
- Difference between delivery times
Product Hierarchy
Being useful for evaluation, pricing and reporting purposes, a ‘Product Hierarchy’ is an alphanumeric character string consisting of a maximum of 18 characters. It thus defines the product and its composition.
We maintain product hierarchy in the material master through following;
SPRO-> IMG-> Logistics – General-> Material Master-> Settings for Key Fields-> Data Relevant to Sales and Distribution-> Define Product Hierarchies