SAP MM Integration with SD-PM-PS-FI-WM-QM modules

Material Management (MM) module is one of the core modules of SAP ERP (formerly known as SAP R/3). MM is highly integrated with other modules such as FICO (Financial Accounting & Controlling), Sales & Distribution (SD), Production Planning (PP), Plant Maintenance (PM), Project System (PS), Warehouse Management (WM), Quality Management (QM), etc.

The main areas covered by MM are:

• Enterprise structure
• Master Data (vendor and material)
• Purchasing /procurement
• Materials planning (MRP and CBP)
• Inventory Management and Physical Inventory Management
• Material valuation and Account determination
• Invoice verification

In this post, I will try to explain the integration between SAP MM and other modules. I will explain it in a simple way. Please give your opinion or suggestion by writing a comment at the end of this post.

The sales order (SO) or demand forecast of a finished product from SD module can be considered as a requirement in SAP MM. I have explained the SD business processes at previous article.

• If the finished product is available, then it can be delivered to the customer by converting SO to outbound delivery, then perform Goods Issue (GI) transaction based on outbound delivery in inventory management.
• If the finished product is not available, this requirement can trigger materials planning process in MM. Materials planning in SAP can automatically create procurement proposals, such as planned order. Planned order can be converted into:
  • Purchase Requisition (PR), if the finished product is procured externally.
  • Production order in PP, if the finished product is produced internally. The production order will be considered as dependent requirement for their components or raw materials. SAP will determine these dependent requirements by using the information from Bill of Materials (BOM) of finished product. These dependent requirements will also trigger materials planning for the components  that will create planned order of the components.
  In addition, materials planning can also create purchase requisition directly as a procurement proposal (no planned order).

The maintenance order (from PM) or network activity (from PS) can also create:

• PR of material/service that is procured externally, or
• Reservation of the stock material.
  • If the stock of material is available then the reservation item can be issued with GI transaction in Inventory Management.
  • If it’s not available, the reservation (which can be considered as requirement) can be processed by materials planning to create procurement proposals, such as planned order that can be converted to PR or production order.

The PR will be processed by purchasing/procurement department with MM module to be a purchase order (PO). Based on the PO, the vendor will deliver the material/service. Then it will be received in Inventory Management with Goods Receipt (GR) transaction.

• If the material received is finished product, we can deliver it to the customer by converting SO to outbound delivery, then perform GI transaction in inventory management.
• If the material is component or raw material, we can use it in production order to produce the finished product with GI to production order transaction. When the finished product has been  produced, we can perform the GR to production order transaction in inventory management. Then, we can deliver it to the customer by converting SO to outbound delivery, then perform GI transaction in inventory management.

The vendor that delivered the material/service based on PO, will send their invoice to the responsible person in the company. Then, he/she will perform the Invoice Receipt (IR) transaction in MM. Based on the IR transaction, the finance department will process the payment in FI module.
The GR, GI, and other transactions in Inventory Management can be linked in details to the WM module. In WM module, we can maintain material stock at a level that more detail (which is storage bin) than MM module (which is storage location). We can store the same materials at several storage bins in a storage location.
With QM, we can copy quality master data, such as certificate required, of a material that ordered in a PO, so the vendor will provide it.  When we post GR transaction, we can post it to quality inspection stock. We can give a score/quality level to the material that delivered by vendor.
The GR and GI transactions in inventory management also trigger the accounting journals in FI module that in a real-time basis update the company financial reports such as Balance Sheet and Profit & Loss Statement.

The budgeting in PS can also be linked to the PR and PO in MM to keep that the total value (price) in PR and PO does not exceed the budget.
If you have something to add about MM integration with other modules please write on comment section.

LSMW – Create Vendor Master Data

Part 1:

http://www.youtube.com/watch?feature=player_embedded&v=WryqzGUlEpI

Part 2:

http://www.youtube.com/watch?v=xBynCYbcU9Y&feature=player_embedded

• Go to LSMW tcode
• On “Legacy System Migration Workbench” screen, place cursor on “Project” field and, click “Create Entry” button () to create a new project, sub project, and object if you haven’t had one yet.
• Fill the project/sub project/object and its description fields.
• Click the “execute” button ().
• On “LSM Workbench:XXXX” screen, choose “Maintain Object Attributes” radio button, and click “execute” button ().
• On “LSM Workbench – Display Object Attribute” screen, click the “display – change” button (). Click the “Batch Input Recording” radio button and then click “Recordings: Overview” button ().
• On “Recording of Project XXXX: Overview” screen, click “Create Recording” button ().
• On “Create Recording” pop up window, fill the “Recording” and “Description” fields, and press Enter.
• On “Transaction Code” pop up window, fill the “Transaction Code” with “XK01”, and press Enter. This will bring you to the Create Vendor transaction (XK01).
• On “Create Vendor: Initial Screen” screen, fill the “Company Code”, “Purchasing Organization”, and “Account Group” fields. In this example, we only fill those fields. Then click “Enter” button ()
• Note: All fields that we fill on the LSMW recording screen will be the input parameters and can be the input fields on the template file.
• On “Create Vendors: Address” screen, fill the relevant fields like on the video above. Click “Enter” button ()
• On “Create Vendors: Control” screen, fill the relevant fields. In this example we don’t fill any fields, but if you need to fill some of them, go ahead, those fields will be input parameters of your LSMW recording program. Click “Enter” button ()
• On “Create Vendors: Payment Transactions” screen, fill the relevant fields. In this example we don’t fill any fields, but if you need to fill some of them, go ahead, those fields will be input parameters of your LSMW recording program. Click “Enter” button ()
• On “Create Vendors: Accounting Information Accounting” screen, fill the relevant fields like on the video above. Click “Enter” button ()
• On “Create Vendors: Payment Transactions Accounting” screen, fill the relevant fields like on the video above. Click “Enter” button ()
• On “Create Vendors: Corresponding Accounting” screen, fill the relevant fields. In this example we don’t fill any fields, but if you need to fill some of them, go ahead, those fields will be input parameters of your LSMW recording program. Click “Enter” button ()
• On “Create Vendors: Purchasing Data” screen, fill the relevant fields like on the video above. Click “Enter” button ()
• On “Create Vendors: Partner Functions” screen, fill the relevant fields. In this example we don’t fill any fields, but if you need to fill some of them, go ahead, those fields will be input parameters of your LSMW recording program. Click “Enter” button ()
• On “Last data screen reached” pop up window, click “Yes” button to save the vendor master data we’ve just created.
• On “Create Recording” screen, click “Default All” button to assign the input parameter field name with the corresponding field name in SAP table.
• Press “Ctrl+Y” on the keyboard to change the cursor to selection tool. Select the field name and field description, press “Ctrl+C” on the keyboard to copy the selected text. Paste it to a spreadsheet file. Scroll down and do the same step for other fields. Edit the spreadsheet like the above video. We will use the text on the spreadsheet on the next step.
• Back to SAP screen. On “Create Recording”, click “save” button (), then “back” button ().
• On “Recording of Project XXXX: Overview” screen, click “back” button ().
• On “LSM Workbench – Display Object Attribute” screen, fill the “Recording” field with the recording name that we’ve just created. Click “save” button (), then “back” button ().
• On “LSM Workbench:XXXX” screen, choose “Maintain Source Structures” radio button, and click “execute” button ().
• On the “LSM Workbench: Display Source Structure”, click “Display – Change” button (), then click “Create a structure” button (). Fill the “Source Structure” and “Description” fields, and press Enter. Click “save” button (), then “back” button ().
• On “LSM Workbench:XXXX” screen, choose “Maintain Source Fields” radio button, and click “execute” button ().
• On the “LSM Workbench: Display Source Fields”, click “Display – Change” button (). Place the cursor n the source field we created before, then click “Table Maintenance” button ().
• Go to the spreadsheet that we created before and insert two columns like on the video above. Copy the text and go to SAP screen.
• On “Source Fields for Source Structure XXXX” screen, paste the text from the spreadsheet. Click “save” button (), then “back” button ().
• On the “LSM Workbench: Change Source Fields”, click “save” button (), then “back” button ().
• On “LSM Workbench:XXXX” screen, choose “Maintain Structure Relations” radio button, and click “execute” button ().
• On the “LSM Workbench: Display Structure Relationships”, click “Display – Change” button ().Click “save” button (), then “back” button ().
• On “LSM Workbench:XXXX” screen, choose “Maintain Field Mapping and Conversion Rules” radio button, and click “execute” button ().
• On the “LSM Workbench: Display Field Mapping and Conversion Rules”, click “Display – Change” button (). Go to “Extra – Auto-Field Mapping” menu. On the “Auto-Field Mapping: Settings” pop up window, choose “Edit All Target Fields”, “Only Edit Initial Target Fields”, “Match Fields with the Same Name”, “Only Apply Rule ‘Transfer (Move)’”, “No Confirmation” radio buttons. Click “save” button (), then “back” button ().
• On “LSM Workbench:XXXX” screen, choose “Specify Files” radio button, and click “execute” button ().
• On the “LSM Workbench: Specify Files (Display)”, click “Display – Change” button (). Place cursor on “On the PC (frontend)” text, and click “Add Entry” button (). Browse to a .txt file that you will use as the template. If you haven’t had one yet, create a new one first.
• On “File on Front End: Maintain Properties” pop up window, “Delimiter” section, choose “Tabulator” radio button. Press Enter. Click “save” button (), then “back” button ().
• On “LSM Workbench:XXXX” screen, choose “Assign Files” radio button, and click “execute” button ().
• On the “LSM Workbench: Assign Files (Display)”, click “Display – Change” button ().Click “save” button (), then “back” button ().
• Do the next steps like on the video above.