Materials Management with SAP S4HANA: Business Processes and Configuration


Manage your materials with SAP S/4HANA! Whether your focus is on materials planning, procurement, or inventory, this guide will teach you how 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.

Materials Management with SAP S4HANA Business Processes and Configuration

  • 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
Procurement and Planning

Master your procurement processes, from setting up purchasing information records and special procurement types to creating requests for quotations and purchase orders. Learn how 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

Are 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.

  • 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
Contents at a Glance

PART I: Materials Management Foundations

  • Materials Management Overview
  • Organizational Structure
  • Configuring the Material Master
  • Material Master Data
  • Business Partners
Configuring the Material Master

Material Master

  • Configuring a New Material Type
  • Defining a Number Range for a Material Type
  • Defining Field Selections
  • Configuring an Industry Sector
  • Defining Material Groups
  • Configuring a New Unit of Measure
  • Validating the Correctness of Configurable Objects
  • Summary
Material Master Data

Industry Sector

Material Type

  • Standard Material Types
  • Configuring Material Types
  • Changing a Material Type
Basic Data
  • Creating a Material Master Record: Immediately
  • Creating a Material Master Record Scheduled
  • Creating a Material Master Record: Special
  • Selecting Views
  • Organizational Levels
  • Basic Data Tabs
Classification Data
  • Class Type
  • Classes
  • Characteristics
Purchasing Data
  • General Data
  • Purchasing Value Key
  • Other Data/Manufacturer Data
  • Foreign Trade Data
  • Origin/EU Market Organization/Preferences
  • Legal Control
Sales Organizational Data
  • General Data
  • Tax Data
  • Quantity Stipulations
  • Grouping Items
  • Material Groups
  • Product Attributes
Sales General Data
  • General Data
  • Shipping Data
  • General Plant Parameters
Material Requirements Planning Data
  • General Data
  • Material Requirements Planning Procedure
  • Lot Size Data
  • Procurement
  • Scheduling
  • Net Requirements Calculations
  • Forecast Requirements
  • Planning
  • Availability Check
  • Bill of Materials Requirements
  • Discontinued Parts
  • Repetitive Manufacturing/Assembly/Deployment Strategy
Advanced Planning Data
 
  • Procurement/PP/DS
  • Demand
  • Lot Size
  • Goods Receipt/Goods Issue
  • Location Dependent Shelf-Life
  • Extended Service Parts Planning
    • Basic Data
    • Extended SPP
Forecasting Data
  • General Data
  • Number of Periods Required
  • Control Data
Work Scheduling Data
  • General Data
  • Tolerance Data
  • In-House Production Time in Days
Production Resources/Tools Data
  • General Data
  • Default Values for Task List Assignment
Plant Data/Storage Location
  • General Data
  • Shelf Life Data
  • Segmentation Data
Extended Warehouse Management Data
  • General Data
  • Storage Strategies
  • Palletization Data
  • Storage Bin Stock
Quality Management Data
  • General Data
  • Procurement Data
Accounting Data
  • General Data
  • General Valuation Data
  • Determination of Lowest Value
  • Last First Out Data
Costing Data
  • General Data
  • Quantity Structure Data
  • Standard Cost Estimate
  • Planned Prices
Key Differences between the Material Master in SAP ERP and SAP S/4HANA

Summary

PART II: Procurement

  • Purchasing Overview
  • Purchasing Information Record
  • Purchase Requisitions
  • Requests for Quotation
  • Purchase Orders
  • External Services Management
  • Special Procurement Types
PART III: Planning

Planning Overview

  • Material Requirements Planning
  • Forecasting
PART IV: Inventory

Inventory Management Overview

  • Goods Issue
  • Goods Receipt
  • Physical Inventory
  • Invoice Verification
  • Inventory Valuation and Account Assignment
  • Material Ledger
  • Classification
PART V: Advanced Materials Management
  • Document Management System
  • Batch Management
  • Early Warning System
  • Demand-Driven Replenishment
  • Reporting and Analytics

About the Author

Jawad Akhtar is an SAP logistics and supply chain management expert with a focus on business sales and delivery. He earned his chemical engineering degree from the Missouri University of Science and Technology in the United States. He has more than 20 years of professional experience, 16 of which have been spent working with SAP systems. He has experience working on several large-scale, end-to-end SAP implementation project lifecycles, including rollouts. He works with SAP clients to help them identify the root causes of business issues and address those issues with the appropriate SAP products and change management strategies. He now focuses on next-generation SAP products such as SAP S/4HANA, SAP Integrated Business Planning, SAP Ariba, and SAP Customer Experience.

Martin Murray was a respected logistics consultant and worked with IBM for more than 15 years. He joined the computer industry upon his graduation from Middlesex University in 1986. In 1991, he began working with SAP R/2 in the materials management area for a London-based multinational beverage company, and in 1994 he moved to the United States to work as an SAP R/3 consultant.

Materials Management with SAP S4HANA: Business Processes and Configuration

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