Training Reference Document Template

PROCUREMENT

REFERENCE DOCUMENT

MATERIAL MASTER RECORDS

P11.16

DOCUMENT NO REVISION NO ISSUE DATE PAGE
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CREATE MATERIAL MASTER RECORD

CONCEPTION/PRESENTATION SHEET

(Note: Upon approval, delete the information below the dashed line. This then becomes a Presentation Sheet.)

TARGET AUDIENCE: MRP Controllers
DURATION: 4 hours
OBJECTIVES: - Create a Material Master Record on SAP.
- Distinguish between Material Type and
Industry Sectors.

CONTENTS: - Material Master Database
- Material Master Records
- Create a Material Master Record
- Complete Form FM-PQ-07

TRAINING AIDS: PC/person, PC screen projector, use of copy of
production system and Trainee Evaluation Sheets.
REFERENCE SOURCES:

REFERENCE PERSONS:

PREREQUISITES: P11_15 Master Data Overview

FOLLOWING MODULES: P11_11 Material Ownership

MODULE DEVELOPER:
DATE OF APPROVAL:
TRAINING KIT INCLUDES:
REFERENCE DOCUMENT (TR)
PRESENTATION FILE (TP)
-----------------------------------------------------------------------------------------------------------------------
--
HTC owner: Development dates: Start:
1st Review Committee:
2nd Review Committee:
Approver: Approval:
1st Presentation:
Final Approval:

CONCEPTION SHEET APPROVAL
HTC SPECIALIST DEPT. MANAGER DATE

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DOCUMENT NO:
DOCUMENT CONTROL
TRP11_16
DOCUMENT REVISION CONTROL CONTROL COPY:

0
REVISION PAGE
NUMBER NUMBER/S CHANGE EFFECTED DATE OF ISSUE

0.1 1 - Last First draft issued for Review 30-09-97
0.2 1 - 93 Incorporate comments from V Nemakula & E Mansoor 06-10-97
1.0 1 - 93 Issue for final approval 08-10-97

ROUTING SLIP FOR LAST REVISION NUMBER
ROLE RESPONSIBILITY REVIEW DATE
ORIGINATOR NAME
DEPARTMENT MANAGER
PROCEDURE CO-
ORDINATOR
REVIEWER 1
REVIEWER 2
REVIEWER 3
FINAL REVIEW BY
APPROVED BY

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REFERENCE DOCUMENT MAINTENANCE RECORD

Note to Presenters of this module:
Please record here your concerns, suggestions, etc. should you feel these would be
of value in future revisions of this reference document. Your views are appreciated.

DATE PAGE CONCERN/PROBLEM/ERROR AND PRESENTER
NO. SUGGESTED IMPROVEMENT NAME

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ABSTRACT

To implement an integrated system of production planning and materials
management, you must have a central database wherein anyone in your company
can find out all there is to know about any material passing through the plant.

Everyone must use the same rules and data structures when they enter data about
material details.

The integration of all material data in a single database object eliminates redundant
data storage. Areas such as purchasing, inventory management, material
requirements planning (MRP), invoice verification, and so on, can all use the same
data.

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TABLE OF CONTENTS
PAGE

Conception / Presentation Sheet 2
Document Control 3
Reference Document Maintenance Record 4
Abstract 5

1. INTRODUCTION.......................................................................................................................... 8

2. MATERIAL MASTER DATABASE........................................................................................... 9
2.1 FUNCTION AND USE OF THE MATERIAL MASTER ......................................................... 9
2.2 DATA STRUCTURE................................................................................................................. 9
2.2.1 CLIENT ............................................................................................................................. 11
2.2.2 COMPANY CODE ............................................................................................................ 11
2.2.3 PLANT............................................................................................................................... 11
2.2.4 STORAGE LOCATION ..................................................................................................... 11
3. MATERIAL MASTER RECORDS ........................................................................................... 12
3.1 DEPARTMENTAL DATA...................................................................................................... 12
3.1.1 WORK SCHEDULING ..................................................................................................... 13
3.1.2 ACCOUNTING ................................................................................................................. 13
3.1.3 MRP (MATERIAL REQUIREMENTS PLANNING) ......................................................... 13
3.1.4 PURCHASING .................................................................................................................. 13
3.1.5 PRODUCTION RESOURCES/TOOLS............................................................................. 13
3.1.6 COSTING .......................................................................................................................... 13
3.1.7 CLASSIFICATION ............................................................................................................ 13
3.1.8 BASIC DATA..................................................................................................................... 13
3.1.9 STORAGE ......................................................................................................................... 14
3.1.10 WAREHOUSE MANAGEMENT ..................................................................................... 14
3.1.11 FORECASTING .............................................................................................................. 14
3.1.12 QUALITY MANAGEMENT............................................................................................. 14
3.1.13 SALES.............................................................................................................................. 14
3.2 INTERDEPENDENCY OF USER DEPARTMENT AND ORGANIZATIONAL LEVELS . 14
3.3 MATERIAL NUMBER ........................................................................................................... 16
3.4 INDUSTRY SECTOR.............................................................................................................. 17
3.4.1 FUNCTION OF INDUSTRY SECTOR: ............................................................................ 18
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3.4.2 AVAILABLE INDUSTRY SECTORS:................................................................................ 18
3.5 MATERIAL TYPES ................................................................................................................ 19
3.5.1 FUNCTION OF MATERIAL TYPE: ................................................................................. 20
3.5.2 AVAILABLE MATERIAL TYPES:..................................................................................... 20
3.6 SCREEN SEQUENCE AND FIELD SELECTION................................................................. 20
4. CREATE A MATERIAL MASTER RECORD........................................................................ 21
4.1 CHECKLIST............................................................................................................................ 21
4.2 WHEN DO YOU CREATE A MATERIAL MASTER RECORD .......................................... 22
4.3 CREATING A MATERIAL MASTER RECORD................................................................... 23
4.3.1 MENU PATH .................................................................................................................... 23
4.3.2 INITIAL SCREEN ............................................................................................................. 23
4.3.3 SELECT VIEWS ................................................................................................................ 23
4.3.4 ORGANIZATIONAL LEVELS........................................................................................... 24
4.3.5 BASIC DATA VIEW .......................................................................................................... 26
4.3.6 CLASS TYPE ..................................................................................................................... 33
4.3.7 GENERAL CLASSIFICATION ......................................................................................... 34
4.3.8 GENERAL PURCHASING DATA .................................................................................... 36
4.3.9 GENERAL PURCHASE ORDER TEXT............................................................................ 42
4.3.10 MRP 1 ............................................................................................................................. 44
4.3.11 MRP 2 ............................................................................................................................. 58
4.3.12 FORECASTING .............................................................................................................. 66
4.3.13 STORAGE VIEW............................................................................................................. 75
4.3.14 WAREHOUSE MANAGEMENT: THIS IS NOT IN USE AT COMPANY...................... 80
4.3.15 QUALITY MANAGEMENT............................................................................................. 85
4.3.16 ACCOUNTING VIEW..................................................................................................... 90

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1. INTRODUCTION

MATERIAL MASTER
The material master contains all the information on all materials that a company
procures, produces, stores, and sells. It is the company's central source for
retrieving material data.

MATERIAL MASTER RECORD

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2. MATERIAL MASTER DATABASE

2.1 FUNCTION AND USE OF THE MATERIAL MASTER
The integration of all material data in a single database object eliminates
redundant data storage. Areas such as purchasing, inventory management,
material requirements planning (MRP), invoice verification, and so on, can all use
the same data.
The data in the material master is used to perform the following functions in the
SAP Logistics system:
• Purchasing for purchase order processing
• Inventory management for goods movement postings and physical inventory
management
• Invoice verification for posting invoices
• Sales for order processing
• Production planning and control for material requirements planning, scheduling,
and work scheduling

2.2 DATA STRUCTURE
The material master has a hierarchical structure resembling the organizational
structure of a company. Some material data is valid at all organizational levels,
while other data is valid only at certain levels.

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001
Client Alusaf Ltd

0100
Company Code Alusaf Ltd

1100 1200 1300
Plant Hillside Corporate Bayside

Storage 1116
Canteen
1115
Casthouse
1150
Lab

Location

14399 14400 14401
Material Belt, wedge Coupling Coupling

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2.2.1 CLIENT

In commercial, organizational, and technical terms, a client is a self-contained unit
in an R/3 System with separate master records and its own set of tables. General
material data applicable to the entire company is stored at client level. This
includes, for example, material group, base unit of measure, material descriptions,
and conversion factors for alternative units of measure.
Example: 001 for Company Limited

2.2.2 COMPANY CODE

A company code is the smallest organizational unit for which a complete self-
contained set of accounts can be drawn up for purposes of external reporting. This
involves recording all relevant transactions and generating all supporting
documents for the legally required financial statements such as balance sheets
and profit and loss statements.
Example: 0100 for Company Limited

2.2.3 PLANT

A plant is an organizational unit within a company that produces materials or
makes available goods and renders services. All data that is valid for a particular
plant, as well as for the storage locations belonging to it, is stored at plant level.
This includes, for example, MRP data and forecast data.
Example: 1100 for Company
1200 for Corporate
1300 for Company B

2.2.4 STORAGE LOCATION

A storage location is an organizational unit that allows the differentiation of material
stocks within a plant.

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3. MATERIAL MASTER RECORDS

All the information your company needs to manage a material is stored in a data
record in the material master, the material master record. A material master
record therefore contains all the main data on a material, sorted by various
different criteria.
You can enter and change the majority of data in a material master record
yourself.
However, some information can only be updated by the system. For example, the
system updates the administrative data when you process a material master
record, and stock balances when goods receipts or goods issues are posted.
Moreover, the data in a material master record can be divided into two categories:
• Data of a purely descriptive nature
This is data with an information content such as name, size, or dimension.
• Data that the system uses to perform a control function
This is data such as MRP type and price control.

3.1 DEPARTMENTAL DATA
Since different departments in a
company work with the same Engineering /
Sales
design
material, but each department Purchasing
uses different information on that MRP
Work
material, the data in a material scheduling

master record can also be
subdivided in terms of the Production
MATERIAL Quality
departments to which it belongs. MASTER RECORD management
Stock in plant /
storage location

Forecasting

Accounting
Maintenance Warehouse
Storage management

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3.1.1 WORK SCHEDULING

Data required for production scheduling. Examples: tolerance data and in-house
production times.

3.1.2 ACCOUNTING

Data relating to material valuation and automatic account determination. Examples:
price control, standard price or moving average price, valuation class.

3.1.3 MRP (MATERIAL REQUIREMENTS PLANNING)

Information on MRP. Examples: MRP type, safety stock, and planned delivery or
production time for a material.

3.1.4 PURCHASING

Material data provided by the purchasing department. Examples: purchasing group
responsible for the material, permissible over-delivery and under-delivery tolerances,
and purchase order text.

3.1.5 PRODUCTION RESOURCES/TOOLS

Information on the use of a material as a production resource/tool. Examples: use in
particular task list types, grouping keys, default values for task lists and production
orders.

3.1.6 COSTING

Data needed for costing purposes. Examples: product/unit costing, costing lot size,
default valuation data.

3.1.7 CLASSIFICATION

Typical material classification data. Examples: assignment to one or more classes,
characteristic value assignment, standard class.

3.1.8 BASIC DATA

Technical information on the engineering/design of a material. Examples include
document management data, International Article Numbers (EANs), and
dimensions.
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3.1.9 STORAGE

Information on storage and transportation. Examples: storage conditions and
packaging sizes.

3.1.10 WAREHOUSE MANAGEMENT

Information on stock placement and stock removal. Examples: storage type for
stock placement and stock removal, and loading equipment quantities.

3.1.11 FORECASTING

Information used to predict material requirements. Examples: forecast model and
forecast period.

3.1.12 QUALITY MANAGEMENT

Data relating to quality management. Examples: technical delivery terms,
certificate type requirement, QM inspection data (one type for each event).

3.1.13 SALES

Information on sales and shipping. Examples: product hierarchy, account
assignment group, pricing reference material, sales text.

3.2 INTERDEPENDENCY OF USER DEPARTMENT AND
ORGANIZATIONAL LEVELS
Depending on the department to which you belong, you may need to enter
additional organizational levels and control parameters. One important factor is the
organizational level at which the data is managed.
The table below shows you which data you must/can specify, and when.

User Departments/Views and Entries Required
Select the user ... and fill in the fields An entry is ...
department ...
Accounting Plant Mandatory
(if valuation at plant
level)
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Company code
(if valuation at Mandatory
company code level)
Select the user ... and fill in the fields An entry is ...
department ...
Basic data None
Classification None
Costing Plant Mandatory
Forecasting Plant Mandatory
Forecast profile Optional
MRP Plant Mandatory
Storage location Optional
MRP profile Optional
Production Plant Mandatory
resources/ tools
Purchase order None
text
Purchasing Plant Optional
Quality Plant Mandatory
management
Sales: sales org. Sales organization Mandatory
data Distribution channel Dependent on sales org.
Sales: general/ Plant Optional
plant data Sales organization Optional
Distribution channel Dependent on sales org.
Sales text Plant Optional
Sales organization Mandatory
Distribution channel Dependent on sales org.
Storage Plant Optional
Storage location Optional
Warehouse Plant Optional
management Warehouse number Mandatory
Storage type Optional
Work scheduling Plant Mandatory

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3.3 MATERIAL NUMBER

For every material that your company uses, you must create a material master
record in the material master. This record is uniquely identified by a material
number.
At Company you do not enter a material number when creating a material master
record. The system fills the field with the word “Internal” until you save the
material master record. Upon saving the material master record, it assigns a
consecutive number automatically. The number assigned to the record will be
displayed at the bottom of the screen.

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3.4 INDUSTRY SECTOR

Industry sectors have control functions in the SAP R/3 System. Once an industry
sector has been assigned to a material, it can no longer be changed.

M for Mechanical

C for Chemical

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3.4.1 FUNCTION OF INDUSTRY SECTOR:

When you create a material master record, the industry sector you specify
determines:
• which screens appear and in what sequence
• which industry-specific fields appear on the individual screens

3.4.2 AVAILABLE INDUSTRY SECTORS:

A Plant engin./construction
C Chemical industry
D Dienstleistung
L Aluminium
M Mechanical engineering
P Pharmaceuticals
At Company you always select M for Mechanical Engineering. You may find it
useful to predefine this in the system, that is, to set Mechanical as your default
industry sector. This value is then proposed automatically whenever you create a
material master record.
1. Select M at the Industry Sector field, as well as your Material Type in the
next field.
2. From the initial screen of the application function Create material, select
Defaults → Industry sector. A dialog box appears.

3. Enter the key for the industry sector that you want to set as a default.
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If you do not want the Industry sector field to be displayed on the initial screen
when creating a material master record, select the indicator Hide industry
sector. The industry sector will not reappear on the initial screen until you
cancel this selection.

3.5 MATERIAL TYPES

When creating a material master
record, you must assign the
material to a material type. The
material type determines certain
attributes of the material and has
important control functions. DIEN - Service

Materials with the same basic
ERSA - Spare Parts
attributes are grouped together and
assigned to a material type. This
HIBE - Operating
allows you to manage different Supplies
materials in a uniform manner in
accordance with your company's
requirements. Examples of material
types are raw materials, semi-
finished products, and finished
products.

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3.5.1 FUNCTION OF MATERIAL TYPE:

The material type you choose determines:
• which screens appear and in what sequence
• which departmental data you may enter
In addition, the material type determines the material's procurement type, that is,
whether a material is manufactured in-house or procured externally, or whether
both are possible.

3.5.2 AVAILABLE MATERIAL TYPES:

• DIEN (Services)
Services are procured externally and cannot be stored. A material master
record of this material type can always contain purchasing data.
• FERT (Finished products)
Finished products are produced by the company itself. Since they cannot be
ordered by Purchasing, a material master record of this material type does not
contain purchasing data.
• HIBE (Operating supplies)
Operating supplies are procured externally and required for the manufacture of
other products. A material master record of this material type can contain
purchasing data but no sales data.
• NLAG (Non-stock material)
Non-stock material is material that is not held in stock because it is consumed
immediately.
• ROH (Raw materials)
Raw materials are always procured externally and then processed. Since raw
materials cannot be sold, a material master record of this material type contains
no sales data.

3.6 SCREEN SEQUENCE AND FIELD SELECTION
When processing a material master record, you work through its screens in a set
sequence.
The screen sequence and field selection in a material master record depend
among other things on the following questions:

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• Which SAP components does your company use?
If, for example, your company does not yet use the SAP Warehouse
Management system, the warehouse management screens do not appear.
• To which industry sector does your company, and therefore your materials,
belong?
If, for example, your company belongs to the chemical industry, the fields that
appear on the screens will not be the same as for a mechanical engineering
company.
• To which material type do you assign a material?
If, for example, the material is a raw material, the sales screens are not
displayed in the standard R/3 System because raw materials cannot be sold.
• For which organizational level(s) do you wish to enter data?
If you enter data at plant level only, fields specific to storage location are
hidden.

Material
Material
(Industry)
(Material type)

Views Organizational Data screen(s)
- Engineering/ levels
design - Plant
- Purchasing - Storage location
.
. .
. .

4. CREATE A MATERIAL MASTER RECORD

4.1 CHECKLIST
Before you create a material master record, consult the following checklist:
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• Are you sure there is no material master record in the system for this material?
• Is there already a similar material in the system that you can use to enter
data?
• Which industry sector does the material belong to?
• What is the material's material type?
• What description do you want to give the material?
• In what unit of measure do you want to manage the material?
• If you enter basic data or if you enter purchasing data, to which material group
do you want to assign the material?
• If you enter MRP data, which procedure will be used to plan the material?
• If you enter forecasting data, which model do you want to use to forecast
material requirements?

4.2 WHEN DO YOU CREATE A MATERIAL MASTER RECORD
You must create a material master record in the following cases:
• If the material you need is not defined in the material master; in other words, if
there is no material master record for that material. In this case, you create
the material master record.
• If the material you need is already defined in the master record but the data for
a specific user department is missing. In this case, you extend the material
master record by selecting the Create function.
• If your user department data has already been entered for the material you
need but not at the appropriate organizational level (for example, a different
plant). In this case, you extend the material master record by selecting the
Create function.
There are three different approaches to creating material data in the system:
• Creating a Material Master Record
• Creating a Material Master Record with a Reference
• Extending a Material Master Record
The approach you adopt depends on what data is already in the system. In all
cases, you use the Create function.

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4.3 CREATING A MATERIAL MASTER RECORD

4.3.1 MENU PATH

• If you want to create a material master record and you want the data to be
available immediately, call up the material master menu screen and choose
Logistics → Materials Management → Material Master → Material → Create
(general) → Immediately.
• If you want to schedule the creation of a material master record for a particular
date in the future, call up the material master menu screen and choose
Logistics → Materials Management → Material Master → Material → Create
(general) → Schedule.

4.3.2 INITIAL SCREEN

• Material: Leave the field blank.
• Industry Sector: Assign the material to an industry sector. Refer to page 17 to
set the default Industry Sector to M for Company materials.
• Material Type: Assign the material to a material type.

4.3.3 SELECT VIEWS

As soon as the industry sector and material type is assigned and you click on
enter, the Select Views dialog box appears. Select the views (that is user

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departments) for which you want to enter data. Refer to paragraph 3.6 for screen
sequences.

4.3.4 ORGANIZATIONAL LEVELS

The Organizational Levels/Profiles dialog box now appears. Specify the
organizational levels necessary for your departments.

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To reach the data screen for the first user department, press ENTER.

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4.3.5 BASIC DATA VIEW

1 2

3 4

5

6

7 8

9 10

11

12

13 14

15 16

17

18 19

20

21 22 23

24 25 26 27

28

29

30

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1. Base unit of measure
This information is mandatory and identical for all departments. The unit of
measure in which stocks of the material are managed. The system converts all the
quantities you enter in other units of measure (alternative units of measure) to the
base unit of measure.

2. Material group

Material groups allow you to group together materials that have the same attributes.
• 36 Spec Indus Machinery
• 37 Gardening & Tools

3. Old material number

Number under which you have managed the material so far or still manage it, for
example, in another system or in a card index.

4. Lab./office

Key for the cost centre responsible for the material, eg:

BA Business Management Systems

CA Casthouse

EA Engineering

FA Finance

5. Division

A way of grouping materials, products, or services. The system uses divisions to
determine the sales areas and the business areas for a material, product, or
service. A product or service is always assigned to just one division. From the point
of view of sales and distribution, the use of divisions lets you organize your sales
structure around groups of similar products or product lines. This allows the people
in a division who process orders and service customers to specialize within a
manageable area of expertise. Eg:

01 Company Procurement

02 Corporate Div

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6. Product allocation

Product allocation determination procedure

7. Language

The language key indicates the language used to:

• Display texts

• Enter texts

• Create printouts

8. Material description

Text containing up to 40 characters that describes the material in more detail.

9. Basic material

Basic constituent of which the material is made. This field is purely for information.

10. Ind. std descr.

Description of the material in accordance with the appropriate industry standard
(such as ANSI or ISO). This field is purely for information.

11. CAD indicator

This indicator shows that the object (such as BOM or document) was created or
changed from a CAD system.

12. Net weight

Net weight of the material expressed in the unit of weight. This weight is given in
the unit of measure that you specify in the quot;Unit of weightquot; field later in this view.

13. Gross Weight

Gross weight per unit of weight. The weight relates to the unit that you specify in the
quot;Unit of weightquot; field later in this view. The gross weight and its unit always relate to
the base unit of measure.

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14. Unit of weight

Unit referring to a weight of the material. The weight can, for example, be the gross
weight, net weight, or allowed packaging weight. If you specify a weight, you must
enter the corresponding unit of weight here. The unit of weight is a required field in
the quot;Salesquot; view since it is copied to sales orders for the material. You cannot
change it in the sales order. Examples:

G Gram

KG Kilogram

TON Tonne

15. Volume

Space that the material occupies per unit of volume. The volume refers to the unit
specified in the quot;Volume unitquot; field to be entered after this field. The volume and its
unit always refer to the base unit of measure.

16. Volume unit

The unit that refers to the volume of a material. The volume can be the gross
volume, the net volume or the allowed packing volume, for example. If you specify
a volume, you have to enter the corresponding volume unit. Example:

CDM Cubic decimeter

HL Hectoliter

L Liter

M3 Cubic meter

17. Size/dimensions

Text field that you can use as you like, for example, to record the size or dimensions
of the material. The data you enter is merely for information and is not used by the
system. Always enter here the unit in which the dimensions are measured.

18. EAN/UPC

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International Article Number/Universal Product Internationally standardized number
that uniquely identifies a material. This number always refers to a particular unit of
measure or type of packaging. The EAN (International Article Number) is generally
assigned by the manufacturer of the material. In this case, the EAN also identifies
the manufacturer uniquely.

At Company we have internal material number assignment, you have to enter the
number category but no EAN.

19. EAN category

Defines how the system determines an International Article Number (EAN) to be
assigned internally, and which check criteria (check digit, prefix, and so on) an EAN
of this category must fulfil At Company we assign material numbers internally
(automatically by the system) and therefore you want the system to assign the EAN
(internal assignment). In this case you enter an EAN category, but leave the EAN
field blank. If both the EAN field and the EAN category field contain values, the
system assumes that you want to enter the EAN externally and that you have
possibly entered an incorrect EAN category. Example:

HE Manufacturer EAN codes

HK Manufacturer short EAN codes

IC ITF codes

20. No link

Status field for linking to documents in documentation management. Whether
selected or not, the field indicates:

• Either that no drawings/documents in the document management system
(DMS) are assigned to the material

• or that several drawings/documents in the document management system
are assigned to the material

21. Document

Document number (without document management system) Number of the
drawing that exists for this object. Together with the document version, the
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document number is used as information for technical services. It is displayed in
various lists.

22. Document type

Document type (without Document Management system). Subdivides the
documents into groups that are subject to the same organizational processes.
Together with the document number and the document version, the document type
represents the key for document management. It is the main criterion for controlling
document management. The document type controls field selection and the
available statuses for a document info record.

23. Doc. vers.

Version number of an in-house technical document for this object.

24. Page number

Page number of document (without Document Management system) Number of the
page in the document on which the material can be found.

25. Doc. ch. no.

Number that indicates the change status of the drawing. The SAP document
management system is not active in this case.

26. Page format

Page format of document

27. No. sheets

Number of pages that the technical document contains.

28. Gen. Confble matl

Alphanumeric key uniquely identifying the configurable material. The general
configurable material is valid for the whole client. A configurable material is a
material for which different variants are possible, for example different paintwork

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types. The BOM of a configurable material contains all components that are used in
at least one of the variants.

29. Variant

Material is a variant. This indicator specifies whether the current material has been
defined as a variant by configuration value assignment for the configurable material.

30. Material is configurable

This field determines whether a material is configurable. If this indicator is set, you
can assign a variant class to the material, allowing it to be used as a configurable
material.

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4.3.6 CLASS TYPE

Select 001 Material class

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4.3.7 GENERAL CLASSIFICATION

1 2 3 4

1. Class
In the Class column on the second Classification screen, you enter all the
classes to which you want the material to be assigned. The system supplies the
entries for the Class description and Status columns automatically on the basis of
the classes you have chosen. If the material is assigned to more than one class,
you must specify which class is to be the standard class in the Std class column.

2. Class description

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Language-dependent description of a class. The system supplies the entry for the
Class description column automatically on the basis of the classes you have chosen

3. Status

Classification status. Defines whether the allocation is released for class search or
locked. If the allocation is locked, the object is not shown in the search result, or is
shown with a special indicator. The system supplies the entries for the Status
columns automatically on the basis of the classes you have chosen.

4. Std class
If the material is assigned to more than one class, you must specify which class is
to be the standard class in the Std class column. If the indicator is selected, that
class is identified as the standard class. A standard class allows you to access all
the information on classification and characteristics for an object when you use the
object, without having to select one of the classes it is assigned to.

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4.3.8 GENERAL PURCHASING DATA

1 2

3 4

5 6

7 8

9

10 11

13

12 14

15 16

17 18

19 20

21

22

23

24

25

26 27

28

29

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1. Base unit of measure
This information is mandatory and identical for all departments. The unit of
measure in which stocks of the material are managed. The system converts all the
quantities you enter in other units of measure (alternative units of measure) to the
base unit of measure.
2. Order unit
Unit of measure in which the material is ordered. Maintain this field only if you want
to use a unit of measure that differs from the base unit. If the field is not filled, the
system will assume that the unit of measure is the base unit.
3. Purchasing group
Key for a buyer or a group of buyers, who is/are responsible for certain purchasing
activities.
Internally, the purchasing group is responsible for the procurement of a material or a
class of materials.
Externally, it is the medium through which contacts with the vendor are maintained.
Any value that you enter in this field will appear in each item as the default value.
4. Material group
Key that you can use to group together several materials or services with the same
attributes, and to assign them to a particular material group. You can use material
groups to:
• Restrict the amount of data considered in analyses
• Systematically search for material master records via matchcodes
5. MM/PP status
You can use the material status from the materials management/production
planning view to restrict the usability of the material for certain activities. The
material status defines
• in what neighbouring application areas (such as purchasing, material
requirements planning, bills of material, and so on) the material may be
used.
• the type of message the system issues if the material is used in these
application areas.

Example:
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01 Blocked for procmnt/whse 03 Blocked for procmnt
02 Blocked for BOM/Task list 04 Blocked for Warehouse
6. Variable order unit
You set this indicator to activate variable order unit processing. This means that the
order unit you specify in a purchase order may differ from the one given in the
purchasing info record. The indicator also determines whether it is possible to work
with conditions for each order unit.
Not active
1 Active
2 Active with own price
7. Tax indicator
Tax indicator for the material. The tax indicator is used in the automatic
determination of the tax code in Purchasing. If you have taxable materials and
materials that are not subject to tax, you can define two tax indicators with the aid of
which different tax codes can be determined. For example:
0 No tax
1 Full tax
8. Autom. PO
If this indicator: is selected, it specifying that purchase orders are generated
automatically when requisitions are converted (that is to say, the POs are not
displayed on the screen for the user to explicitly save).
9. Batch management
Indicator specifying whether the material is managed in batches.
10. Purchasing value key
You specify reminder and tolerance data, shipping instructions, and order
acknowledgement requirement using the purchasing value key. After you have
entered a key, the system fills the fields with the values defined in Customizing.
11. Shipping instructs.
Key denoting the packaging and shipping instructions issued to the vendor.

12. Reminder 1-3

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Number of days representing the time interval at which reminders or urging
letters/messages are sent to the vendor.

13. Underdel. tolerance
Percentage (based on the order quantity) up to which an under-delivery of this item
will be accepted The system suggests this value when a purchasing info record is
created. If no purchasing info record exists, the system also adopts this value into
the purchase order, contract, or scheduling agreement.
14. Overdeliv. Tolerance
Percentage (based on the order quantity) up to which an over-delivery of this item
will be accepted. The system suggests this value when a purchasing info record is
created. If no info record exists, the system also adopts this value in the purchase
order, contract, or scheduling agreement.
15. Unltd over-delivery
Indicator that specifies whether unlimited over-delivery can be accepted for the
item.
16. Acknowledgement reqd.
Determines whether the purchasing document (purchase order, outline agreement,
etc.) is to be acknowledged by the vendor.
17. GR processing time
Goods receipt processing time in days. Number of workdays required after receipt
of the material for its inspection and placement into storage.
18. Quality inspection
Indicator that specifies whether the material is subject to quality inspection, and
whether a goods receipt is posted to stock in quality inspection
19. Critical part
Indicator specifying whether the material is a critical, that is, particularly important
part. This indicator is purely for information.

20. Source list

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Indicator specifying that the source list must have been maintained in the case of
external procurement for a certain plant. If the indicator for a plant has been set, a
source of supply must be entered in the source list before a purchase order can be
created for issue to the source for the plant.
21. Quota arr. Usage
Key that specifies which business functions use a quota arrangement. The entry
you make here controls how the total order quantity is calculated in the quota
arrangement, and thus which source of supply is determined for the material at a
particular point in time. You can enter a quota arrangement for the following field
combinations:
Q Purchase Order Sloc PlOr Preq MRP Ord
1 X X
2 X X X X
3 X X X X X
22. Commodity code
Official key corresponding to the EC harmonized system for the description and
coding of merchandise.
23. Country of orig
Key of the material's country of origin. This information is used for export
declarations.
24. Region of origin
Describes more precisely the origin of goods during an export or import transaction.
You can enter a region of the country from which the goods originate. This
information is required for the declarations regarding imports and exports which are
made to the authorities (for example, Intrastat in the European Union and the
shipper's export declaration in the USA).
25. Export/import group
A grouping of materials with similar export requirements.
26. Exemption Certificate
ID of cert. stipulating that no imp./exp. license is required.
Set the indicator A if a certificate has been applied for which stipulates that the
material does not require a license for import or export.
Set the indicator B if a certificate exists which stipulates that the material does not
require a license for import or export. In addition, enter the number and issuing date
of the certificate in the respective fields.
Set the indicator C if the application for a certificate has been rejected for this
material.

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Leave the field blank if the material requires an import or export license.
27. No of certificate
No. of cert. stipulating no export/import license. Enter the number assigned by the
authorities to the certificate which stipulates that no import or export license is
required for the material.
28. Issue dat of cert.
Issue date of exemption certificate in export/import. Enter the issuing date of the
certificate which stipulates that no export or import license is required.
29. Military good
Indicates whether a material is a military goods.

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4.3.9 GENERAL PURCHASE ORDER TEXT

1 2 3

4

1. Language
Language key. The language key indicates the language used to:
• Display texts
• Enter texts
• Create printouts
The language key here refers to the purchase order text.

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2. Long Text
Text that describes the object to which it refers in greater detail than the description
or short text. It may extend over several lines.
3. More long texts exist
Indicates that more texts of this text type exist in different languages than are
displayed here.
4. More text
Indicator specifying that the text is longer than the lines displayed on the screen.

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4.3.10 MRP 1

1 4

2 4

3

6

7 9

8 10

11

12 17

13 18

14 19

15 20

16 21

22

23 27

24 28

25 29

26 30

33

31 34

32

35 38

36

37 39

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1. Base Unit of measure
Unit of measure in which stocks of the material are managed. The system converts
all the quantities you enter in other units of measure to the base unit of measure. In
inventory management, the base unit of measure is the same as stock-keeping unit.
The base unit of measure should be the unit which satisfies the need for the highest
level of detail.
Base units of Measure available in Company Company System are for example:
EA Each
H Hour
KG Kilogram
TON TONNE
2. Purchasing group
In this field, you must select a code allocated to a buyer or for a group of buyers
who/which is responsible for purchasing the material. As a result, during a planning
run, order proposals for externally procured materials can immediately be allocated
to the appropriate purchasing group.
Internally, the purchasing group is responsible for the procurement of a material or a
class of materials.
Externally, it is the medium through which contacts with the vendor are maintained.
3. ABC indicator
The system classifies a material as an A, B, or C part according to its
consumption or usage. This classification process is known as the ABC analysis.
The three indicators have the following meanings:
Symbol Meaning
A Very important material according to ABC analysis
B Fairly important material according to ABC analysis
C Less important material according to ABC analysis
4. MM/PP status
By allocating a material status from the view of materials management and
production planning, you determine for which business transactions a material is
used. If a material is not provided for a certain transaction, you specify whether a
warning or an error message appears with this status.
Statuses available in the Company Company System are:

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Code Status
01 Blocked for procmnt/whse
02 Blocked for BOM/Task list
03 Blocked for procmnt
04 Blocked for Warehouse
If you want certain movements not to happen on a specific material master record,
you block it for that function.
Example:
01 blocks a material master record from any issuing, buying, reserving or receiving;
03 blocks a material master record from buying, however, the warehouse can still
receive or issue.
5. Mrp group
The MRP group, groups together materials from the planning point of view for
allocating special control parameters for the planning run. The MRP group is
defined in Customizing where it is also provided with the control parameters.
These control parameters include, for example, the strategy group, the consumption
mode, and the planning horizon and creation indicator.
MRP Groups available in Company Company System:
Abbreviation Description
A General
NSTK Non Stock
PLAN Planned Materials
PPE Safety Clothing
REPA Repairables
ROTA Rotables
UNPL No Planning
REPA and ROTA groups’ results are generated into planned orders.
6. Mrp type
MRP type determine the MRP procedure in the material master record according to
which the material is to be planned.

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MRP types available in Company Company System are for example:
MRP Type Meaning
ND No Planning
PD Material requirements planning
VB Manual reorder point planning
The following table explain mandatory, optional & no entry required fields needed
for MRP type:
+ : Required
* : Optional
- : No entry required
MRP Type VB VM VV PD
Safety Stock * * * *
Reorder Level + + - -
Forecast data * + + *
Period indicator * + + *
Fiscal year variant * + + *
Service level - * * *
Splitting indicator - - * *
7. Reorder point / Level
If the stock falls below this quantity, the system flags the material for materials
planning by creating a planning file entry (requisition).

The reorder point / level is only relevant for reorder point planning. In
automatic reorder point planning, the system calculates the reorder level during
forecasting. If a material master record is recreated, the reorder point / level must
always be entered manually even if it is overwritten again by the system as is the
case in automatic reorder point planning. It is thus possible to plan a material even
if no forecast has yet been carried out for it.

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If you enter a reorder point / level for time-phased planning, the system uses a
mixture of the two planning procedures, reorder point planning and time-phased
planning: materials that are planned using time-phased planning are not only
included in the planning run on the MRP date, but they are also replanned if
material stock falls below the reorder point / level due to a goods issue.
8. Planning cycle
Key that determines on which days the material is to be planned and ordered. If a
vendor always delivers a material on certain days of the week, it makes sense to
carry out the planning run according to the same cycle, but displaced by the delivery
time. The planning cycle is a planning calendar that is defined when Customizing
MRP.
9. Planning time fence
The planning time fence specifies a period within which no automatic changes are
to be made to the master plan. The planning time fence is maintained in workdays.
It is only used for materials that are planned using an MRP type which includes a
firming type. The firming type determines how order proposals are to be created or
scheduled within the planning time fence.
10. Mrp controller
In this field, you must enter a number for a single MRP controller or for a group of
MRP controllers who/which is responsible for the planning of a material.
MRP Controllers within Company Company System are for example:
Department controllers
150 C/HOUSE PRODUCTION
110 MAINT AUTOMATION
133 MAINT CARBON A/ROD
161 MAINT LOGISTICS
106 SERVICES (DIEN)
101 General
11. Lot size key
Key that determines which lot-sizing procedure the system uses within materials
planning to calculate the quantity to be procured or produced. Lot sizing procedure
is the procedure used to calculate the order and production quantities.
It is material requirements planning's role to generate an order proposal if a
requirements shortage is determined during a planning run. The lot size for the
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order proposal is specified according to the lot-sizing procedure you entered in the
material master record.
The available lot-sizing procedures are divided into three groups:
• Static lot-sizing procedures
In static lot-sizing procedures, the lot size is calculated by means of the
quantity specifications recorded in the material master record. There are
three different criteria according to which the lot size can be calculated:
− Lot-for-Lot Order Quantity
If you have specified that the exact lot size is to be used, the system
uses the exact shortage quantity (requirement minus available
warehouse stock) as the order quantity in the case of a material
shortfall.
− Fixed Lot Size
It makes sense to select the fixed lot size for a material if it is only
delivered, for example, in pallets of a certain quantity or in tanks of a
certain size.

Where you have specified that the fixed lot size is to be used, the
system will use the fixed order quantity recorded in the material
master record as the order quantity in the case of a material shortage.
If this order quantity is not sufficient to cover the shortage then several
lots (of the fixed lot size) are planned for the same date until the
shortage has been covered.
− Replenishment up to Maximum Stock Level
Where you have specified that the lot size, quot;replenishment up to
maximum stock levelquot; is to be used then the lot size used by the
system is the difference between available warehouse stock and the
maximum stock level defined in the material master record.
• Period Lot-Sizing Procedures
In period lot-sizing procedures, the requirement quantities from one or from
several periods are grouped together to form a lot. The SAP System
supports various periods. You can determine the number of periods which
are to be grouped together into an order proposal. You have the choice
between:
− Daily Lot Size
− Weekly Lot Size

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If requisitions are in the system for more than a week, they are
grouped into one requisition.
− Monthly Lot Size
If requisitions are in the system for more than a month, they are
grouped into one requisition. This is done to prevent that the buyer
does not receive a lot of requisitions for the same material.
− Lot size according to flexible period lengths, depending on accounting
periods (period lot size)
Lot size keys available in Company Company System are for example:
Abbreviation Description
EX Lot-for lot order quantity
HB Replenish up to maximum stock level
MB Monthly lot size
WB Weekly lot size
Order policy combinations:
MRP Type Lot Size Key Description
VB HB Manual Reorder Point with Maximum
Stock Level Lot size key
VB FX Manual Reorder Point with Fixed Lot
size key
VM HB Automatic Reorder Point with max
Stock Level Lot size key
PD WB//MB/TB/PB/PK Order on Demand with Period Lot
size key
VM FX Automatic Reorder Point with Fixed
Lot size key
PD EX Order on Demand Lot-for-Lot Lot size
key
PD FX Order on Demand with Fixed Lot size
key
ND No Planning

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12. Rounding Profile
You use the rounding profile to instruct the system to adjust the order quantity to a
deliverable unit. You can enter a rounding profile in the material master record.
This profile is used by the system to calculate the order proposal in the planning
run. The rounding profile is defined in Customizing.
For example a material's base unit of measure is 1 unit; the purchase order is to be
delivered in boxes (1 box corresponds to 5 units) You maintain the profile as
follows:
From a requirements of 2 units, the system is to round up to 5; from a requirement
of 32 units, the system is to round up to 35.
13. Minimum lot size
By setting a minimum lot size, you are instructing the system (during lot-size
calculation) to create an order proposal for at least the amount which is specified
here even if a smaller quantity would have been sufficient.

14. Fixed lot size
By entering a fixed lot size, you are instructing the system to create order proposals
for the amount of the fixed lot size specified here. It only makes sense to use the
fixed lot size if you selected either the quot;fixed lot-sizing procedurequot; or the quot;fixed lot
size with splitting/overlappingquot;.
15. Ordering costs
Costs that are incurred, irrespective of lot size, for each purchase order or
production order over and above the actual purchase order price or production
costs.
The ordering costs increase as the number of orders placed increases. They
include costs related to the clerical work of preparing, releasing, monitoring, and
receiving orders, the physical handling of goods, inspections, and setup costs, as
applicable. Ordering costs must be specified in the currency of the company code
belonging to the plant.

16. Assembly scrap (%)
Scrap in percent that arises during production of the material if the material is an
assembly. The assembly scrap is used in materials planning for calculating the lot
size of the assembly, the system increasing the quantity to be produced by the
calculated scrap quantity.
Example

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Qty to be produced 200 pieces
Assembly scrap 10%
Scrap quantity 20 pieces
220 pieces are produced
17. Rounding value
By entering a rounding value, you are instructing the system to round up the receipt
quantity to a multiple of the value specified here. PR and Order proposal’s will be
ordered in multiples of the rounding profile.
18. Maximum lot size
By entering a maximum lot size, you can determine that during the lot-size
calculation, the system will not exceed the quantity specified here for order
proposals.

19. Maximum stock level
In this case, the system will create an order proposal for the amount that results
from subtracting the available stock from the maximum stock level during the lot-
sizing procedure. This is the quantity of the material in the plant that may not be
exceeded. You must enter a value if you have chosen quot;Replenish to maximum
stock levelquot; as the lot-sizing procedure.(VBHB)
20. Storage costs ind.
This indicator the storage costs percentage the system uses when calculating the
lot size to determine storage costs. The storage costs percentage is based on the
quantity stored and the unit price, and refers to the average value of the materials
stored. The percentage is considered constant for the stocking-up period. It
normally lies between 15 and 35%. The storage costs percentage is used by
optimizing lot-sizing procedures to calculate the lot size, but not for any other
purpose.

21. Cycle time
If you select the lot-sizing procedure, quot;fixed lot size with splitting and overlappingquot;,
then you must also enter a cycle time. The cycle time specifies the time interval in
which the planned orders, which are created using this lot-sizing procedure, may
overlap.
If a requirement quantity (for example, for capacity reasons) cannot be procured in
a single lot, you have to schedule several receipts. In conjunction with the overlap
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indicator in the lot size (set in Customizing for the lot size), you can use the cycle
time to specify that these receipts are offset in time, that is, that they are delayed by
the cycle time. You enter the cycle time in workdays. The system uses the cycle
time if a requirement is covered by several receipt elements due to restrictions on
lot size such as maximum lot size (with all lot-sizing procedures) or rounding value
(with fixed lot size with splitting).
22. Procurement type
The procurement type is automatically suggested by the system depending on the
material type. However, you can overwrite the default value. A material can be
produced in-house, it can be externally procured or it can be partly produced in-
house and partly procured externally. If both procurement types are possible for a
material but you only want to specify one, then you must enter the appropriate
indicator here.
Available procurement types within the Company Company System:
ProcType Description
E In-house production
F External procurement
No procurement
X Both procurement types
23. Special procurement
Entering a special procurement type makes it possible for you to specify the
procurement type quot;in-house productionquot; or quot;external procurementquot; more exactly.
For example, setting this indicator would make it possible for you to determine that
an externally procured material should be procured via consignment orders.
Special Procurement type available in Company Company System:
SpP Long Text
01 External procurement by consignment
24. Quota arr. usage
If a material is obtained from various sources of supply, the individual sources of
supply can be provided with a quota arrangement. The quota arrangement applies
to a certain period and specifies how the receipts should be distributed amongst
each source of supply. Sources of supply include, for example, in-house production
or external procurement, other plants as well as individual vendors and outline
agreements.

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With this indicator, you can determine whether a material should participate in the
quota arrangement and which transactions/events result in a quota arrangement.
This means that you can determine, for example, that only purchase orders take
part in quota arrangements or that order proposals, created by requirements
planning take part in quota arrangements.
The entry you make here controls how the total order quantity is calculated in the
quota arrangement, and thus which source of supply is determined for the material
at a particular point in time. The quota arrangement mechanism is also used in
materials planning; that is, the planned orders and purchase requisitions created by
materials planning are included in the quota arrangement.
Quota arrangements available in Company Company System:
Q PO DIS PIOr PReq MRP Ord
1 X X
2 X X X X
3 X X X X X
25. Backflush
By selecting this field you indicate an automatic goods issue for components some
time after their actual physical issue for use in an order.
Each material component is assigned to an operation (maintenance task list or work
order) in the production order. If a material component is backflushed, the system
posts the withdrawal only upon confirmation (part of order monitoring) of the
operation. The withdrawal is then posted automatically.

26. Bulk material
This indicator defines a BOM item as a bulk material, which is available directly at
the work center (for example, washers or grease). Since bulk materials are only
used in small quantities of low value, they are neither subject to MRP nor costed for
an order. This indicator is only supported for items that are relevant to production
and plant maintenance. This indicator is not supported for items that are relevant to
costing. You cannot enter an issue location for a bulk material.
27. Enter batch
This indicator determines whether, when, and how the batch for the components
has to be entered in the production order/process order.
28. Issue stge location

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This is the number of the storage location that is copied to the planned order,
production order, or run schedule quantity:
• If the material is a component, this is the issuing storage location to which any
backflushing is posted.
• If the material is produced, this is the receiving storage location to which the
receipt of the material is posted.

29. Ext. procurement sloc
Key of the storage location that, in materials planning, is proposed in the purchase
requisition for subsequent storage of the material.
30. Withdr. seq. group
Determines the sequence used by the system to withdraw material stocks. The
withdrawal sequence group can refer to a pipeline material, vendor consignment
stock, or to unrestricted-use stock. You use this key, for example, to determine that
for a goods issue, the system should first try to withdraw stock from the pipeline. If
no pipeline info record is available, the system should then try to withdraw stock
from the vendor consignment stock. If no vendor consignment data exists, the
system should then withdraw from the unrestricted-use stock.
31. Gr processing time
The goods receipt processing time specifies the time required to inspect the
material and to transfer it to stock. It represents the time span (in workdays)
between the receipt of the goods and the inward stock movement. The system also
takes goods receipt processing time into account during scheduling.
32. Sched. margin key
The scheduling margin key is used to allocate floats to the material for calculating
basic dates and for carrying out lead time scheduling for the planned order - for
materials that are produced in-house. The float is the opening period for
determining basic dates and the float before production and the float after
production for lead time scheduling. You maintain the floats in Customizing and
they are calculated in workdays.
33. Plnd delivery time
The planned delivery time determines the time required to obtain a material by
means of external procurement. You must only enter the planned delivery time if
the material is externally procured. The status lead time is equal to planned delivery
time plus goods receipt processing time plus procurement lead time.

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34. Planning calendar
You use the PPC planning calendar to specify flexible period lengths for master
planning and material requirements planning.
Flexible periods can be specified for a period lot-sizing procedure for master
production scheduling and material requirements planning. The system groups
together the order proposals, created in the period defined in the planning calendar
into one lot. You allocate this special lot-sizing procedure to the material in the
material master record together with the planning calendar.
35. Safety stock
The safety stock is used to prevent material shortfalls during the stocking-up period
which may occur if consumption is unexpectedly high or if delivery dates are
not kept. You have the choice between manually determining the safety stock or
letting the system automatically determine it for you when carrying out the forecast.
Safety stock forms a part of the reorder level and is not included in requirements
planning.
With manual reorder point planning, you can enter a value in the material
master record. However, it is merely for information With automatic reorder
point planning and forecast-based planning, the system determines and
adjusts the value automatically for forecasting purposes.
36. Coverage profile
The range of coverage profile contains the parameters for calculating the dynamic
safety stock. The dynamic safety stock is calculated depending on the requirements
within a specified period and the range of coverage. The range of coverage profiles
(period length for calculating the average consumption, range of coverage, and so
on) are maintained in Customizing in the MRP screen.

37. Safety time ind.
You use this indicator to switch on the safety time for a material in MRP. If you
define a safety time, the requirements in MRP are brought forward on the time axis
by the number of workdays you define here. Using this indicator you can activate
the safety time and you can set whether all requirements or only independent
requirements (sales order, planned independent requirements, and so on) are to be
brought forward. The actual requirements dates are not changed.

TRP11_16 1.0 08-10-97 56 OF 93

P11_16


38. Service level (%)
If the safety stock level is to be calculated by the system then you must specify a
service level. This level indicates the percentage of existing requirements which is
to be covered by warehouse stock. The higher you specify the service level, the
higher the system will calculate the safety stock level in order to compensate for
additional consumption or delays in delivery. Safety stock is calculated during the
forecast run. Since the system has the tendency to generate fractions, it should be
used in conjunction with rounding values.
39. Safety time
In this field, you set the number of days for the safety time. By entering a safety
time, the system brings forward the requirements date in the planning run by the
number of workdays specified here. The actual requirements dates are not
changed in the process.

TRP11_16 1.0 08-10-97 57 OF 93

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