Materials Management with SAP S/4HANA

Business Processes and Configuration

Book Information

• Publisher: SAP PRESS
• Authors: Jawad Akhtar, Martin Murray
• Year: 2024
• Edition: 3
• Pages: 1018
• Language: English

Description

Manage your materials with SAP S/4HANA! Whether your focus is on materials planning, procurement, or inventory, this guide will teach you to configure and manage MM in SAP S/4HANA. Start by creating your organizational structure and defining business partners and material master data. Then follow step-by-step instructions for your essential processes, from purchasing and MRP runs to goods issue and receipt. Discover how to get more out of SAP S/4HANA by using batch management, demand-driven MRP, SAP Fiori reports, and other built-in tools.

• Configure your materials management processes in SAP S/4HANA
• Maintain critical material and business partner records
• Master core functionality: procurement, MRP, inventory management, and more

Key Highlights

• Material master data
• Business partners
• Purchasing
• Batch management
• Material requirements planning (MRP)
• Demand-driven MRP
• Inventory management
• Goods issue and receipt (GI/GR)
• Material Ledger
• Invoice verification
• Document management
• Reporting

You'll learn about

• Procurement and Planning:
  Master your procurement processes, from setting up the purchasing information records and special procurement types to creating requests for quotations and purchase orders. Learn to run MRP and forecasting in SAP S/4HANA.
• Inventory Management:
  Ensure your system is properly configured to handle goods issue, goods receipt, and other inventory movements. Manage the physical inventory processes, invoice verification, valuation, and more.
• Advanced Processes:
  Core processes not enough? Configure batch management, set up demand-driven replenishment, and use the Document Management System. Discover all-new SAP Fiori apps to report on and monitor your system.

Table of Contents

• Acknowledgments

• Preface
• Who Is This Book For?
• How This Book Is Organized
• Conclusion

• Part I Materials Management Foundations

• 1 Materials Management Overview
• 1.1 What Is Materials Management?
• 1.1.1 Materials Management in SAP S/4HANA
• 1.1.2 Materials Management in Logistics
• 1.2 Materials Management Integration
• 1.2.1 Material Flow of the Supply Chain
• 1.2.2 Information Flow of the Supply Chain
• 1.2.3 Financial Flow of the Supply Chain
• 1.3 Summary

• 2 Organizational Structure
• 2.1 Mapping Business Functions of a Company in the SAP System
• 2.2 Client Structure in the SAP System
• 2.2.1 What Is a Client?
• 2.2.2 Clients in the SAP Landscape
• 2.2.3 Change and Transport System
• 2.3 Company Codes
• 2.3.1 What Is a Company?
• 2.3.2 Creating a Company Code
• 2.4 Plants
• 2.4.1 What Is a Plant?
• 2.4.2 Prerequisites for a Plant
• 2.4.3 Defining a Plant
• 2.4.4 Valuation Level
• 2.4.5 Assigning a Plant to a Company Code
• 2.5 Storage Locations
• 2.5.1 What Is a Storage Location?
• 2.5.2 Defining a Storage Location
• 2.5.3 Automatic Creation of Storage Location Data
• 2.6 Purchasing Organizations
• 2.6.1 What Is a Purchasing Organization?
• 2.6.2 Types of Purchasing Organizations
• 2.6.3 Creating a Purchasing Organization
• 2.6.4 Assigning a Purchasing Organization to a Company Code
• 2.6.5 Assigning a Purchasing Organization to a Plant
• 2.6.6 Assigning a Purchasing Organization to a Reference Purchasing Organization
• 2.7 Purchasing Groups
• 2.8 SAP Calendar
• 2.8.1 Public Holidays
• 2.8.2 Holiday Calendar
• 2.8.3 Factory Calendar
• 2.9 Summary

• 3 Configuring the Material Master
• 3.1 Material Master
• 3.2 Configuring a New Material Type
• 3.3 Defining a Number Range for a Material Type
• 3.4 Defining Field Selections
• 3.5 Configuring an Industry Sector
• 3.6 Defining Material Groups
• 3.7 Configuring a New Unit of Measure
• 3.8 Validating the Correctness of Configurable Objects
• 3.9 Summary

• 4 Material Master Data
• 4.1 Industry Sector
• 4.2 Material Type
• 4.2.1 Standard Material Types
• 4.2.2 Configuring Material Types
• 4.2.3 Changing a Material Type
• 4.3 Basic Data
• 4.3.1 Creating a Material Master Record: Immediately
• 4.3.2 Creating a Material Master Record: Scheduled
• 4.3.3 Creating a Material Master Record: Special
• 4.3.4 Selecting Views
• 4.3.5 Organizational Levels
• 4.3.6 Basic Data Tabs
• 4.4 Classification Data
• 4.4.1 Class Type
• 4.4.2 Classes
• 4.4.3 Characteristics
• 4.5 Purchasing Data
• 4.5.1 General Data
• 4.5.2 Purchasing Value Key
• 4.5.3 Other Data/Manufacturer Data
• 4.5.4 Foreign Trade Data
• 4.5.5 Origin/EU Market Organization/Preferences
• 4.5.6 Legal Control
• 4.6 Sales Organizational Data
• 4.6.1 General Data
• 4.6.2 Tax Data
• 4.6.3 Quantity Stipulations
• 4.6.4 Grouping Items
• 4.6.5 Material Groups
• 4.6.6 Product Attributes
• 4.7 Sales General Data
• 4.7.1 General Data
• 4.7.2 Shipping Data
• 4.7.3 General Plant Parameters
• 4.8 Material Requirements Planning Data
• 4.8.1 General Data
• 4.8.2 Material Requirements Planning Procedure
• 4.8.3 Lot Size Data
• 4.8.4 Procurement
• 4.8.5 Scheduling
• 4.8.6 Net Requirements Calculations
• 4.8.7 Forecast Requirements
• 4.8.8 Planning
• 4.8.9 Availability Check
• 4.8.10 Bill of Materials Explosion/Dependent Requirements
• 4.8.11 Discontinued Parts
• 4.8.12 Repetitive Manufacturing/Assembly/Deployment Strategy
• 4.9 Advanced Planning Data
• 4.9.1 Procurement/PP/DS
• 4.9.2 Demand
• 4.9.3 Lot Size
• 4.9.4 Goods Receipt/Goods Issue
• 4.9.5 Location Dependent Shelf-Life
• 4.10 Extended Service Parts Planning
• 4.10.1 Basic Data
• 4.10.2 Extended SPP
• 4.11 Forecasting Data
• 4.11.1 General Data
• 4.11.2 Number of Periods Required
• 4.11.3 Control Data
• 4.12 Work Scheduling Data
• 4.12.1 General Data
• 4.12.2 Tolerance Data
• 4.12.3 In-House Production Time in Days
• 4.13 Production Resources/Tools Data
• 4.13.1 General Data
• 4.13.2 Default Values for Task List Assignment
• 4.14 Plant Data/Storage Location
• 4.14.1 General Data
• 4.14.2 Shelf Life Data
• 4.14.3 Segmentation Data
• 4.15 Extended Warehouse Management Data
• 4.15.1 General Data
• 4.15.2 Storage Strategies
• 4.15.3 Palletization Data
• 4.15.4 Storage Bin Stock
• 4.16 Quality Management Data
• 4.16.1 General Data
• 4.16.2 Procurement Data
• 4.17 Accounting Data
• 4.17.1 General Data
• 4.17.2 General Valuation Data
• 4.17.3 Determination of Lowest Value
• 4.17.4 Last In, First Out Data
• 4.18 Costing Data
• 4.18.1 General Data
• 4.18.2 Quantity Structure Data
• 4.18.3 Standard Cost Estimate
• 4.18.4 Planned Prices
• 4.19 Key Differences between the Material Master in SAP ERP and SAP S/4HANA
• 4.20 Summary

• 5 Business Partners
• 5.1 Business Partner Overview
• 5.2 Vendor Account Groups
• 5.2.1 Configuring Vendor Account Groups
• 5.2.2 Number Ranges for Vendor Account Groups
• 5.3 Configuring a Business Partner
• 5.3.1 Number Ranges for Business Partners
• 5.3.2 Business Partner Role Categories
• 5.3.3 Field Attributes for a Business Partner Role Category
• 5.4 Customer-Vendor Integration
• 5.4.1 Business Partner Role Categories
• 5.4.2 Business Partner Roles
• 5.4.3 Vendor Account Groups for Business Partner Groupings
• 5.5 Additional Business Partner Configurations
• 5.5.1 Business Partner Types
• 5.5.2 Partner Functions in Materials Management
• 5.6 Maintaining a Business Partner
• 5.6.1 Business Partner General Data
• 5.6.2 Extending a Business Partner as a Financial Accounting Vendor
• 5.6.3 Extending Business Partners for Purchasing
• 5.6.4 Maintaining a Business Partner Relationship
• 5.6.5 Validating the Business Partner Setup
• 5.6.6 Manage Supplier Master Data App
• 5.7 Summary

• Part II Procurement

• 6 Purchasing Overview
• 6.1 Procure to Pay
• 6.2 Purchase Requisitions
• 6.3 Quotations
• 6.4 Outline Agreements
• 6.5 Purchase Orders
• 6.6 Order Acknowledgment
• 6.7 Goods Receipt
• 6.8 Invoice Verification
• 6.9 Source Lists and Source Determination
• 6.9.1 Single Sourcing
• 6.9.2 Multisourcing
• 6.9.3 Generating a Source List
• 6.9.4 Source Determination
• 6.10 Conditions in Purchasing
• 6.10.1 Condition Processing
• 6.10.2 Pricing Conditions
• 6.10.3 Taxes
• 6.10.4 Delivery Costs
• 6.11 Purchasing Information Records
• 6.11.1 Purchasing Information Record for a Nonstock Material
• 6.11.2 Purchasing Information Record Numbering
• 6.11.3 Purchasing Information Record Screen Layout
• 6.12 Serial Numbers
• 6.12.1 Serial Number Profiles
• 6.12.2 Serializing Procedures
• 6.13 Quota Arrangements
• 6.14 Summary

• 7 Purchasing Information Record
• 7.1 Purchasing General Data
• 7.1.1 Creating a Purchasing Information Record
• 7.1.2 Creating a Purchasing Information Record with a Material Number
• 7.1.3 Creating a Purchasing Information Record without a Material Number
• 7.1.4 General Data Screen
• 7.2 Purchasing Organization Data
• 7.2.1 Conditions
• 7.2.2 Validity
• 7.2.3 Text Screen
• 7.2.4 Statistical Data
• 7.3 Summary

• 8 Purchase Requisitions
• 8.1 Configuring a New Purchase Requisition Document Type
• 8.1.1 Defining a Number Range
• 8.1.2 Defining Document Types
• 8.1.3 Creating a Purchase Requisition with a Material Master Record
• 8.1.4 Creating a Purchase Requisition without a Material Master Record
• 8.2 Processing a Purchase Requisition
• 8.2.1 Changing a Purchase Requisition
• 8.2.2 Displaying a Purchase Requisition
• 8.2.3 Closing a Purchase Requisition
• 8.2.4 Follow-On Functions
• 8.3 Indirectly Created Requisitions
• 8.3.1 Purchase Requisition Created by Production Order
• 8.3.2 Purchase Requisition Created by a Plant Maintenance Order
• 8.3.3 Purchase Requisition Created by Project System
• 8.3.4 Purchase Requisition Created by Material Requirements Planning
• 8.3.5 Hand Over Purchase Requisitions
• 8.4 Release Procedures
• 8.4.1 Release Procedures without Classification
• 8.4.2 Release Procedures with Classification
• 8.5 Flexible Workflow
• 8.5.1 Configuration Settings
• 8.5.2 Master Data
• 8.5.3 Setting Up Flexible Workflows
• 8.5.4 Validating and Handling Approval with a Flexible Workflow
• 8.6 Summary

• 9 Requests for Quotation
• 9.1 Creating a Request for Quotation
• 9.1.1 Request for Quotation Type
• 9.1.2 Request for Quotation Date
• 9.1.3 Quotation Deadline
• 9.1.4 Request for Quotation Document Number
• 9.1.5 Organizational Data
• 9.1.6 Default Data for Items
• 9.1.7 Collective Number
• 9.1.8 Validity Start/Validity End
• 9.1.9 Apply By
• 9.1.10 Binding Period
• 9.1.11 Reference Data
• 9.1.12 Request for Quotation Item Detail
• 9.1.13 Request for Quotation Delivery Schedule
• 9.1.14 Additional Data
• 9.1.15 Supplier Selection
• 9.2 Changing a Request for Quotation
• 9.3 Releasing a Request for Quotation
• 9.4 Issuing a Request for Quotation to a Supplier
• 9.5 Maintaining Quotations
• 9.6 Comparing Quotations
• 9.6.1 Price Comparison Factor in Quotations
• 9.6.2 Other Qualitative Factors in Quotations
• 9.7 Rejecting Quotations
• 9.7.1 Flagging the Quotation as Rejected
• 9.7.2 Printing the Quotation Rejection
• 9.7.3 Advising Unsuccessful Bidders
• 9.8 Summary

• 10 Purchase Orders
• 10.1 Creating and Maintaining a Purchase Order
• 10.1.1 Purchase Order Creation
• 10.1.2 Purchase Order Maintenance
• 10.1.3 Version Management
• 10.2 Blocking and Canceling a Purchase Order
• 10.2.1 Blocking a Purchase Order Line Item
• 10.2.2 Canceling a Purchase Order Line Item
• 10.3 Creating a Purchase Order with Reference to Purchasing Documents
• 10.4 Account Assignment in a Purchase Order
• 10.4.1 Account Assignment Categories
• 10.4.2 Single Account Assignment
• 10.4.3 Multiple Account Assignment
• 10.4.4 Automatically Create Purchase Orders from Purchase Requisitions
• 10.5 Progress Tracking
• 10.5.1 Configuration Basics
• 10.5.2 Business Processes
• 10.5.3 Evaluation
• 10.6 Outline Purchase Agreements
• 10.6.1 Scheduling Agreements
• 10.6.2 Contracts
• 10.7 Supplier Confirmations
• 10.7.1 Supplier Confirmation Overview
• 10.7.2 Confirmation Configuration
• 10.7.3 Master Data Maintenance of Confirmation Control
• 10.7.4 Business Processes of Supplier Confirmation
• 10.7.5 Monitoring Supplier Confirmations
• 10.8 Messages and Outputs
• 10.8.1 How Message Determination Works
• 10.8.2 Configuration Steps
• 10.8.3 Maintaining Condition Records
• 10.8.4 Creating a Purchase Order
• 10.9 Pricing Procedures
• 10.9.1 Business Processes
• 10.9.2 Configuration Basics
• 10.10 Supplier Evaluations
• 10.10.1 Configuration Basics
• 10.10.2 Master Data Maintenance
• 10.10.3 Business Processes
• 10.10.4 Calculating Scores
• 10.10.5 Supplier Evaluation by Purchasing Categories
• 10.11 Serial Numbers in Purchasing
• 10.11.1 Configuration Steps
• 10.11.2 Business Processes
• 10.12 Summary

• 11 External Services Management
• 11.1 Service Master Record
• 11.1.1 Material/Service Group
• 11.1.2 Tax Indicator
• 11.1.3 Valuation Class
• 11.1.4 Formula
• 11.1.5 Graphic
• 11.2 Standard Service Catalog
• 11.3 Conditions in External Services Management
• 11.4 Procurement of Services
• 11.5 Entry of Services
• 11.6 Blanket Purchase Orders
• 11.7 Configuration Basics of External Services Management
• 11.8 Summary

• 12 Special Procurement Types
• 12.1 Overview
• 12.2 Direct Procurement
• 12.3 Stock Transfers
• 12.4 Withdrawals from an Alternative Plant
• 12.5 Subcontracting
• 12.5.1 Production Version
• 12.5.2 Production Version: Mass Processing
• 12.5.3 Business Processes in Subcontracting
• 12.5.4 Two-Step Stock Transfer and Subcontracting Cockpit
• 12.5.5 Stock Transfer Direct to Subcontractor
• 12.6 Consignment
• 12.7 Pipeline Material
• 12.8 Third-Party Procurement
• 12.8.1 Third-Party Procurement for a Subcontract Supplier
• 12.8.2 Third-Party Procurement for a Customer
• 12.9 Intercompany Purchases
• 12.9.1 Stock Transport Order with Delivery via Shipping
• 12.9.2 Stock Transport Order with Delivery and Billing Document/Invoice
• 12.10 Simplified Sourcing
• 12.10.1 Source of Supply without a Source List
• 12.10.2 Simplified Sourcing with a Quota Arrangement
• 12.10.3 Simplified Sourcing with a Scheduling Agreement or a Contract
• 12.10.4 Simplified Sourcing for Internal Procurement
• 12.11 Summary

• Part III Planning

• 13 Planning Overview
• 13.1 Material Requirements Planning
• 13.2 Consumption-Based Planning
• 13.3 Summary

• 14 Material Requirements Planning
• 14.1 Material Requirements Planning Elements
• 14.1.1 Material Requirements Planning Types
• 14.1.2 Lot-Sizing Procedures
• 14.1.3 Scrap
• 14.1.4 Safety Stock
• 14.1.5 Scheduling
• 14.1.6 Net Requirements Calculation Logic
• 14.1.7 Procurement Proposals
• 14.2 Material Requirements Planning Procedures
• 14.2.1 Consumption-Based Planning
• 14.2.2 Forecast-Based Consumption Planning
• 14.2.3 Types of Planning Runs
• 14.2.4 MRP Live
• 14.2.5 Stock/Requirements List
• 14.3 Planning Areas
• 14.3.1 Configuration
• 14.3.2 Setting Up in the Material Master
• 14.3.3 Running MRP at the Planning Area Level
• 14.3.4 Planning Results
• 14.4 Classic MRP
• 14.5 Configuration Settings
• 14.5.1 Material Requirements Planning Activation
• 14.5.2 Plant Parameters Configuration
• 14.5.3 Material Requirements Planning Group Configuration
• 14.6 Planning Calendar
• 14.7 Summary

• 15 Forecasting
• 15.1 Forecast Models
• 15.1.1 Constant Model
• 15.1.2 Trend Model
• 15.1.3 Seasonal Model
• 15.1.4 Seasonal Trend Model
• 15.2 Forecasting Master Data
• 15.3 Forecast Profile
• 15.4 Business Processes in Forecasting
• 15.4.1 Executing Forecast
• 15.4.2 Executing Material Requirements Planning
• 15.5 Configuration Settings for Forecasting
• 15.5.1 MRP Types
• 15.5.2 Weighting Group
• 15.5.3 Splitting Indicator
• 15.6 Summary

• Part IV Inventory

• 16 Inventory Management Overview
• 16.1 Stock Types
• 16.1.1 Standard Stock Types
• 16.1.2 Special Stock Types
• 16.2 Goods Movements
• 16.2.1 Transaction MIGO
• 16.2.2 Stock Overview
• 16.2.3 Warehouse Stock of Materials
• 16.2.4 Material Document
• 16.2.5 Movement Types
• 16.2.6 Goods Issue
• 16.2.7 Goods Receipt
• 16.3 Physical Inventory
• 16.4 Returns
• 16.4.1 Creating a Return
• 16.4.2 Configuring Reasons for Returns
• 16.5 Material Documents
• 16.6 Reservations
• 16.6.1 Creating a Manual Reservation
• 16.6.2 Automatic Creation of Reservation
• 16.6.3 Material Requirements Planning and Reservations
• 16.6.4 Reservations Management Program
• 16.6.5 Configuration Settings of Reservations
• 16.6.6 Pick List
• 16.7 Stock Transfer and Transfer Posting
• 16.7.1 Transfer between Plants
• 16.7.2 Stock Transfer between Storage Locations
• 16.7.3 Transfer between Plants Using Transaction MIGO_TR
• 16.7.4 Transfer between Company Codes
• 16.7.5 Additional Transfer Posting Scenarios
• 16.8 Configuration Basics in Inventory Management
• 16.8.1 Configuring a Movement Type
• 16.8.2 Number Ranges for Material Documents
• 16.9 Summary

• 17 Goods Issue
• 17.1 Goods Issue to a Production Order
• 17.1.1 Planned Goods Issue
• 17.1.2 Unplanned Goods Issue
• 17.1.3 Backflushing
• 17.2 Goods Issue to Scrap
• 17.3 Goods Issue for Sampling
• 17.4 Goods Issue Posting Documents
• 17.4.1 Material Documents
• 17.4.2 Accounting Documents
• 17.4.3 Goods Issue Slips
• 17.4.4 Stock Changes
• 17.4.5 General Ledger Account Changes
• 17.5 Goods Issue Reversals
• 17.6 Summary

• 18 Goods Receipt
• 18.1 Goods Receipt for a Purchase Order
• 18.1.1 Goods Receipt with a Known Purchase Order Number
• 18.1.2 Goods Receipt with an Unknown Purchase Order Number
• 18.1.3 Goods Receipt Posting
• 18.2 Goods Receipt for a Production Order
• 18.3 Initial Entry of Inventory
• 18.4 Good Receipt of Co-Products or By-Products
• 18.4.1 Material Master Flag
• 18.4.2 Bill of Materials
• 18.4.3 Production Order
• 18.4.4 Confirmation
• 18.4.5 Goods Receipt
• 18.4.6 Documented Goods Movement
• 18.5 Other Goods Receipt
• 18.5.1 Goods Receipt without a Production Order
• 18.5.2 Goods Receipt for Free Goods
• 18.5.3 Goods Receipt for Returnable Transport Packaging
• 18.5.4 Automatic Goods Receipt
• 18.5.5 Supplier Return Process
• 18.6 Cancellation of Material Document
• 18.7 Summary

• 19 Physical Inventory
• 19.1 Physical Inventory Methods
• 19.2 Physical Inventory Preparation
• 19.2.1 Preparations for a Physical Inventory Count
• 19.2.2 Creating the Physical Inventory Count Document
• 19.2.3 Printing the Physical Inventory Count Document
• 19.3 Counting and Recounts
• 19.3.1 Entering the Count
• 19.3.2 Difference List
• 19.3.3 Missing Material
• 19.3.4 Recounts
• 19.4 Physical Inventory Posting
• 19.4.1 Posting the Count Document
• 19.4.2 Posting a Count without a Document
• 19.4.3 Accounting of Inventory Differences
• 19.5 Cycle Counting Method of Physical Inventory
• 19.5.1 Configuration Basics
• 19.5.2 Business Processes of Cycle Counting
• 19.6 Summary

• 20 Invoice Verification
• 20.1 Standard Three-Way Match
• 20.1.1 Entering an Invoice
• 20.1.2 Simulating a Posting
• 20.1.3 Invoice Posting
• 20.1.4 Invoice Parking
• 20.1.5 Invoices for Account-Assigned Purchase Orders
• 20.1.6 Invoices for Blanket Purchase Orders
• 20.2 Duplicate Invoice Check
• 20.3 Invoice Verification in Background Processing
• 20.4 Evaluated Receipt Settlement
• 20.4.1 Master Data
• 20.4.2 Business Processes in Evaluated Receipt Settlement
• 20.5 Credit Memos and Reversals
• 20.6 Subsequent Debit/Credit
• 20.7 Taxes in Invoice Verification
• 20.8 Discounts in Invoice Verification
• 20.8.1 Gross Posting
• 20.8.2 Net Posting
• 20.9 Goods Receipt/Invoice Receipt Account Maintenance
• 20.10 Invoice Reduction
• 20.11 Invoicing Plans
• 20.11.1 Periodic Invoicing Plan
• 20.11.2 Partial Invoicing Plan
• 20.11.3 Variances
• 20.11.4 Tolerance Keys
• 20.11.5 Supplier-Specific Tolerance
• 20.12 Blocking Invoices
• 20.12.1 Manual Block
• 20.12.2 Stochastic or Random Block
• 20.12.3 Block Due to an Amount of an Invoice Item
• 20.12.4 Quantity Variance
• 20.12.5 Price Variance
• 20.13 Releasing Blocked Invoices
• 20.14 Down Payments
• 20.14.1 Creating a Purchase Order with a Down Payment
• 20.14.2 Monitoring Down Payments
• 20.14.3 Creating a Down Payment
• 20.14.4 Purchase Order with Down Payment History
• 20.14.5 Invoice Verification with Down Payment
• 20.15 Retention Money
• 20.15.1 Configuration
• 20.15.2 Business Processes
• 20.16 Summary

• 21 Inventory Valuation and Account Assignment
• 21.1 Valuation Methods: Moving Average Price and Standard Price
• 21.1.1 Standard Price: S
• 21.1.2 Moving Average Price: V
• 21.1.3 Configuration Steps
• 21.1.4 Process Steps
• 21.2 Split Valuation
• 21.2.1 Configuration Steps
• 21.2.2 Master Data
• 21.2.3 Business Processes
• 21.2.4 Reports of Split-Valuated Materials
• 21.3 Account Determination
• 21.3.1 Configuration with the Automatic Account Determination Wizard
• 21.3.2 Configuration without the Automatic Account Determination Wizard
• 21.3.3 Master Data Setup
• 21.3.4 Troubleshooting Errors
• 21.4 Last In, First Out Valuation
• 21.4.1 Configuration
• 21.4.2 Preparation
• 21.4.3 Running a Last In, First Out Valuation
• 21.5 First In, First Out Valuation
• 21.5.1 Configuration
• 21.5.2 Preparation
• 21.5.3 Running a First In, First Out Valuation
• 21.6 Lowest Value Determination
• 21.6.1 Lowest Value Determination Based on Market Prices
• 21.6.2 Lowest Value Determination Based on Range of Coverage
• 21.6.3 Lowest Value Determination Based on Movement Rate
• 21.7 Material Price Changes
• 21.7.1 Price Changes in the Current Posting Period
• 21.7.2 Price Changes Not Carried Over
• 21.7.3 Price Changes Carried Over
• 21.7.4 Business Process
• 21.7.5 Configuration Steps for Price Changes in the Previous Period/Year
• 21.8 Summary

• 22 Material Ledger
• 22.1 Material Ledger Overview
• 22.2 Business Processes
• 22.2.1 Inventory Valuation Method
• 22.2.2 Material Price Determination
• 22.2.3 Multiple Currencies
• 22.2.4 Price Differences
• 22.2.5 Debit and Credit of a Material
• 22.3 Configuration Basics
• 22.3.1 Activating Valuation Areas
• 22.3.2 Assigning Currency Types
• 22.3.3 Maintaining Number Ranges for Material Ledger Documents
• 22.3.4 Automatic Account Determination
• 22.4 Activating the Material Ledger
• 22.5 Reporting in the Material Ledger
• 22.6 Summary

• 23 Classification
• 23.1 Classification Overview
• 23.1.1 SAP S/4HANA Classification System
• 23.1.2 Describing an Object
• 23.2 Characteristics
• 23.2.1 Creating a Characteristic
• 23.2.2 Additional Details of Characteristics
• 23.3 Create a Class and Assign Characteristics
• 23.4 Assigning a Class to a Material Master
• 23.5 Finding Objects Using Classification
• 23.6 Summary

• Part V Advanced Materials Management

• 24 Document Management System
• 24.1 Configuration Steps
• 24.1.1 Define a New Number Range
• 24.1.2 Defining the Document Type
• 24.1.3 Document Status
• 24.1.4 Object Links
• 24.1.5 Define Workstation Application
• 24.2 Document Info Record Management
• 24.2.1 Creating a Document Info Record
• 24.2.2 Originals
• 24.2.3 Classification System and Additional Data
• 24.2.4 Object Links
• 24.3 Changing a Document Info Record
• 24.4 Display a Document Info Record
• 24.5 Searching Document Info Records
• 24.5.1 Search Options
• 24.5.2 Basic Documents Attributes
• 24.5.3 Search Additional Attributes or Classification
• 24.5.4 Object Links
• 24.5.5 Text or Long Text
• 24.5.6 Originals
• 24.5.7 Full Text
• 24.6 Manage Documents App
• 24.6.1 Editing a Document with the Manage Documents App
• 24.6.2 Creating a Document Info Record with the Manage Documents App
• 24.7 Summary

• 25 Batch Management
• 25.1 Batch Management Overview
• 25.2 Batch Level and Batch Status Management
• 25.2.1 Define the Batch Level
• 25.2.2 Batch Number Assignment
• 25.2.3 Creation of New Batches in the Production Process
• 25.2.4 Batch Creation for Goods Movement
• 25.3 Master Data in Batch Management
• 25.3.1 Activate Batch Management in the Material Master
• 25.3.2 Batch Classification
• 25.3.3 Assigning Classification in the Material Master
• 25.4 Business Processes of Batch Management
• 25.4.1 Create a Batch Master Manually
• 25.4.2 Changing a Batch
• 25.4.3 Deleting a Batch
• 25.4.4 Automatic Creation of a Batch in Goods Movement
• 25.4.5 Stock Overview
• 25.5 Batch Determination
• 25.5.1 Define Condition Tables
• 25.5.2 Define the Access Sequence
• 25.5.3 Define Strategy Types
• 25.5.4 Batch Search Procedure Definition
• 25.5.5 Batch Search Procedure Allocation and Check Activation
• 25.5.6 Batch Search Procedure for Process Orders
• 25.5.7 Creating Sort Rules
• 25.5.8 Maintaining Condition Records
• 25.5.9 Business Process
• 25.6 Recurring Inspection and Expiration Dates
• 25.6.1 Quality Management Master Data Checklist
• 25.6.2 Business Processes
• 25.7 Batch Derivation
• 25.7.1 Configuration Basics
• 25.7.2 Classification in Material Master
• 25.7.3 Business Processes
• 25.7.4 Reporting
• 25.8 Batch Traceability of Work in Process Batches
• 25.8.1 Configuration Settings
• 25.8.2 Master Data Setup
• 25.8.3 Business Processes
• 25.8.4 Work in Process Batches Reporting
• 25.9 Batch Information Cockpit
• 25.10 Electronic Batch Record
• 25.11 Summary

• 26 Early Warning System
• 26.1 Overview
• 26.2 Setting Up the Early Warning System
• 26.2.1 Creating Exceptions
• 26.2.2 Grouping Exceptions
• 26.2.3 Setting Up Periodic Analysis
• 26.3 Scheduling an Early Warning System
• 26.4 Early Warning System in Action
• 26.5 Exception Analysis
• 26.6 Summary

• 27 Demand-Driven Replenishment
• 27.1 Demand-Driven MRP Overview
• 27.2 Demand-Driven MRP Components
• 27.2.1 Strategic Inventory Positioning
• 27.2.2 Buffer Profiles and Levels
• 27.3 Demand-Driven MRP Setup
• 27.3.1 Configuration Settings
• 27.3.2 Master Data Settings
• 27.3.3 Transactions
• 27.4 Running Demand-Driven Replenishment
• 27.4.1 Protecting Throughput
• 27.4.2 Classification
• 27.4.3 Buffer Positioning
• 27.4.4 Lead Time Classification
• 27.4.5 Buffer Level Determination
• 27.4.6 Planning and Execution
• 27.4.7 Metrics and Analytics
• 27.5 Summary

• 28 Reporting and Analytics
• 28.1 The Basics of Reporting
• 28.2 Purchasing Reports
• 28.2.1 Purchasing Documents
• 28.2.2 Multiple Selection
• 28.2.3 Report Output
• 28.2.4 Downloading
• 28.2.5 Copying Selective Data to Microsoft Excel
• 28.2.6 Printing
• 28.2.7 Maintaining Selections
• 28.2.8 Maintaining Variants
• 28.2.9 Purchase Order History
• 28.3 SAP Fiori Apps for Procurement
• 28.3.1 Procurement Overview
• 28.3.2 Purchase Requisition Average Approval Time
• 28.3.3 Purchasing Spend
• 28.3.4 Spend Analysis
• 28.3.5 Overdue Purchase Order Items
• 28.3.6 Material Price Variance
• 28.3.7 Invoice Price Variance
• 28.3.8 Supplier Evaluation by Time
• 28.3.9 Purchasing Group Activities
• 28.3.10 Invoice Processing Analysis
• 28.3.11 Off-Contract Spend
• 28.3.12 Contract Leakage
• 28.3.13 Purchase Order Average Delivery Time
• 28.3.14 Spend Variance
• 28.3.15 My Purchasing Documents Items
• 28.3.16 Monitor Purchase Order Items
• 28.3.17 Monitor Supplier Confirmations
• 28.4 SAP Fiori Apps for Planning
• 28.4.1 Display MRP Master Data Issues
• 28.4.2 Monitor Material Coverage
• 28.4.3 Manage Material Coverage
• 28.4.4 Monitor Internal Requirements
• 28.4.5 Monitor External Requirements
• 28.5 SAP Fiori Apps for Inventory Management
• 28.5.1 Overview Inventory Management
• 28.5.2 Goods Movement Analysis
• 28.5.3 Inventory Turnover Analysis
• 28.5.4 Non-Moving Stock
• 28.5.5 Slow-Moving Stock
• 28.5.6 Physical Inventory Document Overview
• 28.5.7 Manage Stock
• 28.5.8 Material Documents Overview
• 28.5.9 Material Stocks on Posting Date
• 28.5.10 Shelf Life List
• 28.5.11 Physical Inventory Analysis
• 28.6 Summary

• A Movement Types

• B The Authors

• Index

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