Configuring Lot Sizes for MRP in SAP S4HANA

This document, prepared by Ahmed Shafay, provides a comprehensive guide to the configuration and implementation of Material Requirements Planning (MRP) in SAP S/4HANA. It covers the key objectives, working principles, and different lot size types in MRP, along with detailed steps for configuring the necessary MRP settings, including defining MRP groups, special procurement types, and number ranges for purchase requisitions. The document then walks through three end-to-end test scenarios demonstrating the application of fixed lot size, replenishment up to maximum stock level, and exact lot size MRP procedures. This guide serves as a valuable resource for SAP users and consultants seeking to optimize their MRP processes and inventory management.

Read more

SAP MM Subcontracting Process Guide

This Subcontracting Process in SAP MM PDF document, prepared by SAP MM Consultant Mohammed Murtuza Siddiqui, provides an in-depth look at the subcontracting procurement process within SAP Materials Management. Subcontracting, where a procuring entity supplies components to a subcontractor for manufacturing a final product, is detailed through a practical scenario involving the ordering, supplying components, and receiving assembled items. The document outlines key steps for executing a subcontracting process, including maintaining stock, creating BOMs, setting up subcontracting POs, and handling material issues, receipts, and invoice verification, accompanied by relevant SAP transaction codes and accounting document verification.

Key topics mentioned in the guide are:

  • Subcontracting definition and importance.
  • Scenario description.
  • Detailed step-by-step execution of the subcontracting process.
  • Accounting entries and invoice verification.

Read more

Release Strategy Configuration in SAP MM

This PDF document, authored by Mohammed Murtuza Siddiqui, an SAP MM Consultant, provides a comprehensive guide on the release strategy process within SAP Materials Management (MM). The release strategy is essential for managing approval requirements for internal and external documents like purchase requisitions and orders, ensuring that purchase orders are approved by designated roles before proceeding. The document outlines scenarios based on purchase order values and the corresponding approval processes, detailed steps for configuring the release strategy in SAP MM.

Key sections covered in the document include:

  • Definition and importance of release strategy in SAP MM.
  • Scenario-based approval process for purchase orders.
  • Detailed steps for configuring the release strategy, including:
    • Copying and configuring standard PO document types.
    • Defining characteristics, class, release groups, codes, and indicators.
  • Execution of the release strategy with practical testing scenarios for different PO values.

Read more

Setting Up Scheduling Agreements in SAP MM

This document provides an overview of how to set up and use scheduling agreements with release documentation in SAP MM for forecast and just-in-time (JIT) delivery schedules. It covers creating the necessary master data, generating the different schedule types, and how creation profiles control schedule aggregation.

Key Sections from the document are:

  • Material master data setup with JIT indicator
  • Creation profiles for release documentation
  • Assigning creation profile to vendor master
  • Creating a scheduling agreement with release documentation
  • Generating forecast and JIT delivery schedules
  • How creation profile controls aggregation of forecast vs JIT schedules
  • Reviewing schedule release documents

Read more

SLED in SAP MM: Configuration and End User Guide

This document provides an overview of shelf life expiration date (SLED) configuration and functionality in SAP Materials Management (MM) module. It covers how to set up and activate SLED checks, define minimum and total shelf life in material master records, and enter SLED dates during goods receipt. Four scenarios are explained with examples to illustrate system behavior based on whether minimum and total shelf life values are maintained.

  • Introduction to shelf life expiration date and its importance for perishable goods inventory management
  • Prerequisites for enabling SLED checks such as configuration settings and material master data
  • Explanation of total shelf life vs minimum remaining shelf life fields and how they impact SLED calculations
  • Four case studies analyzing system behavior when minimum/total shelf life values are blank or populated in material master
  • Step-by-step configuration guide with screenshots for activating SLED checks and period indicators
  • Examples of SLED entry during goods receipt and resulting system validations for each case study scenario
  • Conclusion summarizing learnings on how minimum and total shelf life settings impact GR process

Read more

Negative Stock Configuration in SAP MM

Negative stock is a concept in SAP that allows inventory to be issued or sold even when there is no physical stock available. This can be useful in some scenarios, such as:

  • When there is a delay in updating the inventory records due to technical or operational reasons, but the business needs to continue the sales or production process.
  • When there is a temporary shortage of stock due to high demand or supply disruptions, but the business expects to receive replenishment soon and wants to avoid losing customers or orders.
  • When there is a planned negative stock situation, such as when a consignment vendor delivers goods directly to the customer, but the business still wants to record the sales and revenue in SAP.

This document provides an overview of negative stock handling in SAP MM (Materials Management). It covers the prerequisites and configuration steps required to allow negative stocks at the plant and storage location level. Two scenarios are presented to demonstrate how negative stocks can be utilized when a goods issue needs to be completed before the corresponding goods receipt is posted.

List of topics covered in the document are;

  • What is Negative Stock Handling
  • Prerequisites for Negative Stock Handling
  • Scenario 1: Goods issue with movement type 201, goods receipt with movement type 101
  • Scenario 2: Goods issue with movement type 201, stock transfer between locations with movement type 311
  • Important points to remember about negative stocks

Read more

SAP MM-FI Integration: A Presentation to Understand Key Concepts

This document provides an overview of integration between Materials Management (MM) and Financial Accounting (FI) modules in SAP. It covers fundamentals like goods movements, movement types, transaction keys, and account determination. The process flow from MM transaction to FI journal entry is explained. Configuration, master data setup, and key transaction codes are listed. Exercises demonstrate customizing a new movement type and modifier for specific integration requirements.

Key FI-MM integration topics covered in the document are;

  • Introduction to current FI-MM transactions and processes
  • Fundamentals – goods movements, movement types, transaction keys
  • Understanding MM to FI integration process flow
  • Advanced topics like purchase accounts, variance accounts
  • Configuration and master data for FI-MM integration
  • Key transaction codes
  • Exercises to customize movement type and modifier

Read more