Materials Management

Key User Training (5 days) Batam : 18/2 - 19/2, 25/3 - 01/4 Singapore : 07/3 - 15/3

Agenda Overview

S/N Organisation sstructure Master data / Material Types / Batch Procurement Inventory Management With Finance involvement - Invoice verification / Tolerence / Block - Automatic Account Determination - Material Valuation

Day 1 Day 1 Day 2 Day 3 - 4 Day 5

Batam 18/2 (Mon) 18/2 (Mon) 19/2 (Tue) 25/3 (Mon) - 26/3 (Tue) 01/4 (Mon)

Singapore 07/3 (Thu) 07/3 (Thu) 08/3 (Fri) 11/3 (Mon) - 12/3 (Tue) 13/3 (Wed)

Vincent Ng, ERP Project, 4 May 2012, Page 2

Agenda Day 1

S/N
1.

Subject
MM Organization Structure

2.

Material Master
--- Exercise ---

0900 - 1200

3.

Vendor Master (Purchasing) --- Exercise ---

4.

Info Record --- Exercise ---

5.

Source List --- Exercise ---

1300 - 1700

6.

Quota Arrangement --- Exercise ---

7.

Conditions --- Exercise ---

Vincent Ng, ERP Project, 4 May 2012, Page 3

KUT - Objectives

Objective

To train Key User on the functionality of MM that has been configured so that he can do the following : - User Acceptance Test - Train the End User

Vincent Ng, ERP Project, 4 May 2012, Page 4

KUT - How to achieve it.

How Power Point Presentation to provide details on the different functionality Key User Operational Manual to provide step by step guide on the different functionality. Hands on Exercise to provide the necessary experience & exposure assisted by the Key User Operational Manual Written Test to access the skills & knowledge transfer.

Vincent Ng, ERP Project, 4 May 2012, Page 5

KUT - Requirement

Requirement Commitment to attend all classes. Commitment to practice during class & outside class

Commitment to complete all exercises assigned.

Read up on the power point presentation & the Key User Operational Manual Commitment to learn and to be ready for knowledge transfer to End Users.

Vincent Ng, ERP Project, 4 May 2012, Page 6

Organizational Levels in Procurement Process

Client Company Code Plant Storage Location Purchasing Organization/ Purchasing Group
Vincent Ng, ERP Project, 4 May 2012, Page 7

Organizational Levels in Inventory Management

Client 400

Company code 0001

Company code 0002

Plant 1000

Plant 1100

Plant 2000

SLoc 0001

SLoc 0002

Lagerort SLoc 0001 002

SLoc 0002

SLoc 0003

Vincent Ng, ERP Project, 4 May 2012, Page 8

Plant

A plant is an organizational logistics unit that structures the enterprise from the perspective of production, procurement, plant maintenance, and materials planning.
A plant is a manufacturing facility or branch within a company.

Vincent Ng, ERP Project, 4 May 2012, Page 9

Storage Location

The storage location is an organizational unit that allows the differentiation of material stocks within a plant. Inventory Management on a quantity basis is carried out at storage location level in the plant. Physical inventory is carried out at storage location level.

Vincent Ng, ERP Project, 4 May 2012, Page 10

Purchasing Organization / Group

Purchasing organization

A purchasing organization is an organizational level that negotiates conditions of purchase with vendors for one or more plants. It is legally responsible for completing purchasing contracts. A purchasing group is the key for a buyer or group of buyers responsible for certain purchasing activities.

Vincent Ng, ERP Project, 4 May 2012, Page 11

SESEA Logistic Organization

Company Code

SESEA (1010)

Purchasing Organization

SESEA (1010)

Plant

SESEA PSA Bldg (1010)

Vincent Ng, ERP Project, 4 May 2012, Page 12

SESG Logistic Organization

Company Code

SESG (1020)

Purchasing Organization

SESG (1020)

Plant

SESG TechPoint (1020)

SESG Tagore Lane (1021)

Storage Location

Main Store (0001)

Quarantine (9001)

Sales Return (9002)

Vincent Ng, ERP Project, 4 May 2012, Page 13

SESS Logistic Organization

Company Code

SESS (1030)

Purchasing Organization

SESS (1030)

Plant

SESS TechPoint (1030)

SESS Tagore Lane (1031)

Storage Location

Mat (Svc) (0013)

Quarantine (9001)

Sales Return (9002)

Main Store (0001)

Quarantine (9001)

Sales Return (9002)

Vincent Ng, ERP Project, 4 May 2012, Page 14

SELA Logistic Organization

Company Code

SELA (1040)

Purchasing Organization

SELA (1040)

Plant

SELA Nicosia (1040)

Storage Location

Main Store* (0001)

FG (0021)

Quarantine (9001)

Sales Return (9002) * Warehouse Management

Vincent Ng, ERP Project, 4 May 2012, Page 15

SEIDS Logistic Organization

Company Code

SEIDS (1050) Reference Purchasing Organization

Purchasing Organization

SEIDS (1050)

IPO (0001)

Plant

SEIDS TechPlace (1050)

Storage Location

Main Store (0001)

Quarantine (9001)

Sales Return (9002)

Vincent Ng, ERP Project, 4 May 2012, Page 16

SEOA Logistic Organization

Company Code

SEOA (1060)

Purchasing Organization

SEOA (1060)

Plant

SEOA PSA Bldg (1060)

Storage Location

Main Store (0001)

Quarantine (9001)

Sales Return (9002)

Vincent Ng, ERP Project, 4 May 2012, Page 17

SESS Logistic Organization

Company Code

SEES (1070)

Purchasing Organization

SEES (1070)

Plant

SEES PSA Bldg (1070)

Storage Location

Main Store (0001)

Quarantine (9001)

Sales Return (9002)

Vincent Ng, ERP Project, 4 May 2012, Page 18

SEMB Logistic Organization

Company Code

SEMB (2020) Reference Purchasing Organization

Purchasing Organization

SEMB (2020)

IPO (0001)

Plant

SEMB Batam (2020)

Storage Location

Mat (Pdt) (0011)*

FG (0021)

Consumable Maintenance (0031) (0041)

Quarantine (9001)

Sales Return (9002)

* Warehouse Management

Vincent Ng, ERP Project, 4 May 2012, Page 19

Material Master SE Standard Product

Basic data
Pc

Purchasing

Materials planning

S&D

Y001
A B

Stocks in plant/storage loc.

SE Standard Product

Work scheduling

Accounting

Costing

Storage

Forecasting

Warehouse Mgmt

Classification

Vincent Ng, ERP Project, 4 May 2012, Page 20

Material Master SE Equipment

Basic data
Pc

Purchasing

Materials planning

S&D

Y002
A B

Stocks in plant/storage loc.

SE Equipment

Work scheduling

Accounting

Costing

Storage

Forecasting

Warehouse Mgmt

Classification

Vincent Ng, ERP Project, 4 May 2012, Page 21

Material Master SE Semi-Finished

Basic data
Pc

Purchasing

Materials planning

S&D

Y003
A B

Stocks in plant/storage loc.

SE SemiFinished

Work scheduling

Accounting

Costing

Storage

Forecasting

Warehouse Mgmt

Classification

Vincent Ng, ERP Project, 4 May 2012, Page 22

Material Master SE Raw Materials

Basic data
Pc

Purchasing

Materials planning

S&D

Y004
A B

Stocks in plant/storage loc.

SE Raw Materials

Costing

Accounting

Forecasting

Storage

Classification

Warehouse Mgmt

Vincent Ng, ERP Project, 4 May 2012, Page 23

Material Master SE Shipping Mark

Basic data

Purchasing

Y005 SE Shipping
Classification S&D

Mark

Vincent Ng, ERP Project, 4 May 2012, Page 24

Material Master SE Prod./Res. Tools

Basic data

Purchasing

A B

Stocks in plant/storage loc.

Classification

Y006
Accounting

SE Prod./ Res. Tools

Prod. Res./Tools

Storage

Warehouse Mgmt

Vincent Ng, ERP Project, 4 May 2012, Page 25

Material Master SE Modified Product

Basic data
Pc

Purchasing

Materials planning

S&D

Y007
A B

Stocks in plant/storage loc.

SE Modified Product

Work scheduling

Accounting

Costing

Storage

Forecasting

Warehouse Mgmt

Classification

Vincent Ng, ERP Project, 4 May 2012, Page 26

Material Master SE Adapted Product

Basic data
Pc

Purchasing

Materials planning

S&D

Y008
A B

Stocks in plant/storage loc.

SE Adapted Product

Work scheduling

Accounting

Costing

Storage

Forecasting

Warehouse Mgmt

Classification

Vincent Ng, ERP Project, 4 May 2012, Page 27

Material Master SE Non-Valuated

Basic data
Pc

Purchasing

Materials planning

S&D

Y100
A B

Stocks in plant/storage loc.

SE NonValuated

Forecasting

Storage

Warehouse Mgmt

Vincent Ng, ERP Project, 4 May 2012, Page 28

Material Master SE Services

Basic data
Pc

Purchasing

Y200
t

Materials planning

SE Service

S&D

Classification

Vincent Ng, ERP Project, 4 May 2012, Page 29

Material Group
Code
001 002 003 004 071 081

Description
DM - Merlin Gerlin DM - Modicon DM - Square D DM - Telemecanique DM - Other brands Assembly - Equipment

Direct Material Equipment

091
101 201 202 203 204

Service
Asset Office Furnishing R&M - Building .

Service Asset

Expense

Vincent Ng, ERP Project, 4 May 2012, Page 30

Material Master - Field Status

Description Material group Material Group: Packaging Materials Basic Data 1 Product hierarchy General item category group Division Material group Material is costed with quantity structure Costing 1 Material-related origin Purchasing group Plant-Specific Material Status Purchasing Indicator: "automatic purchase order allowed" Distribution-chain-specific material status Date from which distr.-chain-spec. material status is valid Minimum order quantity in base unit of measure Delivering plant Sales Org 1 Cross-distribution-chain material status Date from which the X-distr.-chain material status is valid Delivering plant Material Pricing Group Item category group from material master Product hierarchy Sales Org 2 Material statistics group Account assignment group for this material Sales Org/Plant Profit Center Storage type indicator for stock removal WM 1 Storage type indicator for stock placement

Y001
R R R D D R R R R R R R R R R D D R R R R R O O R R

Y007
R R R D D R R R R R R R R R R D D R R R R R O O R R R - Required

Y008
R R R D D R R R R R R R R R R D D R R R R R O O R R

Y002
R R R D D R R R R R R R R R R D D R R R R R O O R R O - Optional

Material Type Y003 Y004

R R R D D R R R R R R R R R R D D R R R R R O O R R R R O D D R R R R R R R R R R D D R R R O O O O R R D - Display

Y005
O O O D D O O O O O O O O O O D D O O O O O O O O O

Y006
O O O D D O O O O O O O O O O D D O O O O O O O R R

Y100
O O O D D O O O O O O O O O O D D O O O O O O O R R

Y200
O O R D D R O O O O O O O O O D D R O O R R R R O O

Vincent Ng, ERP Project, 4 May 2012, Page 31

Vendor Master Data

Euro check

General data Address, communication, control data, bank details

Company code data Account management Payment transactions Correspondence Withholding tax Purchasing organization data Purchasing data Partner roles

Vendor master record

Vincent Ng, ERP Project, 4 May 2012, Page 32

Vendor Master Terms of Payment

Code Y001 Y002 Y003 Y004 Y005 Y009 Y014 Y015 Y016 Y017
Vincent Ng, ERP Project, 4 May 2012, Page 33

Description Cash 30 days 60 days 90 days 120 days 115 days 30 days + 25 end of month 60 days + 25 end of month 90 days + 25 end of month 120 days + 25 end of month

Purchasing Info Records

Info record 5300000816

Vendor: 1234 A21 3000 Material: PurchOrg:

Screw A21

Conditions
Price/UoM Freight Discount 6 UNI / kg 2% 4%

Vendor 1234

Last purchase order 4500006398

Vincent Ng, ERP Project, 4 May 2012, Page 34

Info Records and Prices

Piece %

Yes

Conditions

No

UNI

Info record
Conditions:
Price/UoM 50 UNI / pc Freight 2%

Info record available?

Yes

No Last purchase order: 4500006398

Create purchase order Item 10 Material T-RA120

Manual Price entry

Short text Chromolux 2000

Price ?

Vincent Ng, ERP Project, 4 May 2012, Page 35

Shipping Instructions

To define the mode of transport in purchase order Code V1 Description By Sea

V2
V3 V4

By Land
By Air By Courier

Vincent Ng, ERP Project, 4 May 2012, Page 36

Planned Delivery Costs

Planned

Freight
shipping shipping

Customs
DUTY

1.) Fixed amount per item or purchase order

2.) Percentage from value of goods

Three possibilities to specify planned delivery costs -> SE configured to use method 2.
Vincent Ng, ERP Project, 4 May 2012, Page 37

3.) Quantitydependent amount

Source List

Jan 01 96 - Jun 30 96

Jul 01 96 - Dec 31 96

Source list
Material M1 Plant 0001

Vendor 1 allowed Vendor 2 allowed Vendor 3 allowed

Vendor 1

fixed

To allow system to automatically assign source during MRP run, set 1 - Relevant to MRP, in source list usage set 2 - Relevant to MRP, Scheduling line generated
Vincent Ng, ERP Project, 4 May 2012, Page 38

Creating Source Lists Automatically

Info record
Source list

Material Vendor

CABLE-01 A1500-01

Source list 3 Source list 2 Source list 1 Material Vendor Valid from: Valid to: Outline agmnt: CABLE-01 A1500-01 March 04, 98 Sept. 30, 99 460000018

Outline agreement
Material Vendor CABLE-01 A1500-01

Vincent Ng, ERP Project, 4 May 2012, Page 39

Quota Arrangement

Divides the total requirement of a material over a period among certain sources of supply by assigning a quota to each source. The quota specifies which portion of the total requirement should be procured from a given source The existence of a quota arrangement does not involve the apportioning of an individual material requirement
Quota-allocated quantity + Quota base quantity ------------------------------------------------------------= Quota rating Quota
The source with the lowest quota rating represents the valid source

Vincent Ng, ERP Project, 4 May 2012, Page 40

Conditions

Quotation

Purch.ord.

Conditions
Key PB00 Description Gross price Amount 10.00 UNI

Y001
Y002 RA00 Outline agreement

SE Planned Freight
SE Planned Custom Discount from net

5.0%
8.0% 3.00 UNI Info recd Info recd

Vincent Ng, ERP Project, 4 May 2012, Page 41

Conditions

Y001 SE planned freight Plant / Vendor /Material Plant / vendor Plant / Material

Y002 SE planned custom Plant / Vendor /Material Plant / Code number

Vincent Ng, ERP Project, 4 May 2012, Page 42

Calculation of Deadlines

PO date

Delivery date

Availability

Creation of requisition

Processing time in Purchasing

Default : 2 days (Configuration)

Planned delivery time

Material Master or Info Record

GR processing time

t
Material Master

1.) Manual PO creation -> Take from info record if there is, otherwise take from material master. 2.) MRP PO creation -> Take from info record if source list is maintained and it is indicated as MRP relevant, otherwise take from material master.
Vincent Ng, ERP Project, 4 May 2012, Page 43