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SAP MM Interview Discussion 3 by Ganesh Padala
Dear All,
In this video, discussion onfew topics of SAP MM are covered. I hope this video will be helpful for your learning. You can watch and share your valuable feedback.
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Ganesh Padala
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Will you get the Storage locations of reference plant when you copy to new plant?
Answer: Yes. When we create new plant, we generally copy from reference plant. It is recommended also. It may be SAP standard 1000 or any existing Plant which was implemented earlier.
During this activity, system will copy all the storage locations of reference plant and we can see those under IMG Activity-SPRO-Enterprise Structure-Material Management-Maintain Storage Location (Transaction Code -OX09). We can remove storage locations which are not required and also we can change the description etc. as per the business requirement.
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Ganesh
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What is the use of Purchase value key?
Answer:
Purchasing value key determines the following things:
1) Reminders keys- There are 3 keys which determine in how many days before or after the vendor has to be reminded or urging letters for the material procurement.
2) Over and under deliveries tolerances.
3) Order acknowledgement requirements in PO.
It gives all the conditions in which the procurement is made. You can have different purchasing value keys which have to be customized with below path:
SPRO-IMG – MM – Purchasing – MM – Define Purchasing Value Keys or Transaction Code OME1. Screen shots are given below
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Ganesh
ganesh.sap2015@gmail.com
Storage Bin in SAP WM
Hello Friends,
Storage Bin is the most important master data in SAP Warehouse Management. It is the smallest addressable unit in a warehouse. In this document, I have explained the definition of storage bin along with the use and other details. And also I have provided the manual for creation of Storage bin with screen shots. I hope it will be useful for you. Share this document link in social network to make it useful for many people
Storage Bin:Â
Definition:
The storage bin (sometimes referred to as a “slot”) is the smallest addressable unit in a warehouse. It identifies the exact location in the warehouse where goods can be stored.
A storage bin can be further sub-divided into bin sections. Several different materials (Quants) can be stored in one bin at the same time.
 Use:
Defines the bin into which the material in this storage type is to be placed.
Maximum storage bin quantity
Largest quantity that can be stored in a storage bin of this storage type
This quantity is recorded in the base quantity unit.
 Use:
This entry is used for checking storage bin capacity.
Minimum storage bin quantity
Minimum quantity which is stored in the bin location of this storage type. Quantity is recorded in the base quantity unit
 Use:
The system can use this entry for a material replenishment in this bin location.
Rounding qty:
When using the quantity-dependent picking strategy (large/small quantities), the requested quantity is rounded down to this quantity when materials are picked from this storage type.
This quantity is managed in the base unit of measure.
Storage bin can be created manually one by one or multiple storage bins can be created automatically.
- Manual Storage Bin Creation:
Transaction Code- LS01N
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Display Storage Bin: T Code –LS03N
2. Automatic Storage Bin Creation: This is a configuration step. System will ask for a Transport Request after saving this transaction. This can be done through LS10 transaction code or by using below configuration Path
SPRO->IMG-> Logistics Execution-> Warehouse Management->Master Data-> Storage Bins-> Define Storage Bin Structure
After click on Define Storage Bin Structure, system will show below screen. Select the required line contains Warehouse number, Storage type and section and template. Storage bin structure, start value and end value will be given as per the requirement.
Now select the line and click on display icon as shown below
Then click on Create bins which is under Environment as shown below
Below screen will be appeared.
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Then click on Create Online. System will prompt a message as shown below. Then click on Yes to create bins
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Below message will be observed at the bottom
After saving, transport request screen will be appeared. In few business cases, we get access to LT10 transaction in Production to complete the storage bin creation directly in Production as Storage Bin comes under master data. If you don’t use storage bin structure, you can create LSMW for LS01N Transaction to create Storage Bins in bulk.Â
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Thanks for viewing this document. Share with friends and colleagues who are learning SAP WM.
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Regards,
Ganesh
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SAP Warehouse Management Organization Structure
Hello Friends,
I am providing my first document from SAP WM. In this document, creation of organization structure is provided with screen shots. I hope it will be useful for you.
Read and share the blog with your friends in social networkÂ
Warehouse Management Organization Structure:
- Warehouse Number: Warehouse Number is defined in Enterprise structure. Generally, it is created by copying the standard. This is an alphanumeric code with 3-character length and the description has 25 characters length. It will be assigned to Plant and Storage Location in assignment. It can be assigned to several combinations of Storage Location and Plant.
SPRO->Enterprise Structure->Definition-> Logistics Execution ->Define, copy, delete, check warehouse number
Double click on below highlighted text to proceed with next step
Then click on Copy icon and provide input details as shown below. Generally, from warehouse number is given as standard warehouse number 001 or as per the requirement. And to warehouse number field will be filled with the warehouse number which has to be created
Find the warehouse number below
Assignment of Warehouse number to Plant/Storage location combination:
SPRO->Enterprise Structure->Assignment-> Logistics Execution->Assign warehouse number to plant/storage location
Note: One warehouse number can be assigned to the combination of multiple plants and storage locations. But multiple warehouse numbers can’t be used for the same Plant
Click on new entries and assign Plant, Storage Location and Warehouse number
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2. Storage Type: Number of areas can be defined within the warehouse. The defined areas of Storage in SAP are called Storage Types. The layout of the warehouse is divided into Storage Types, and these defined areas related directly to the requirements of the materials to the stored in the warehouse.
Ex: Fast moving materials, Rack Storage, Bulk Pallet Storage, Slow moving materials, Special Storage
 Below path is used to define Storage Type
SPRO-> Logistics Execution-> Warehouse Management-> Master Data->Define Storage Type
Ware house number is copied from the standard warehouse number, so all standard storage types will be copied and available for the new warehouse number as shown below
New storage type also can be created as per the requirement. Find below screen for new storage type
3. Storage Section: The Storage type can be divided into several areas which are called Storage sections. Storage section contains the storage bins where the material is stored. Many storage types only have one storage section because there is no requirement to break Storage type into further distinct areas. At least one storage section should be there for a storage type
Example: Pallet goods, Bulk goods, fast moving Items, Slow moving items etc.
 Below path is used to define Storage section.
SPRO-> Logistics Execution->Warehouse Management-> Master Data->Define Storage Section
I hope this document will be helpful to understand about the organization structure of Warehouse Management
Regards,
Ganesh
ganesh.sap2015@gmail.com
Subcontracting Process in SAP MM
Hi Friends,
I have provided brief details about Subcontracting process as per my experience. Make it useful. What is subcontracting process? Subcontracting is one of the procurement processes available in MM. In this process, components are shared to vendor to get the final product. Below are the steps involved in this process. Steps to perform subcontracting:
- Create subcontracting Info record (Optional) – T Code – ME11
- Create subcontracting PO with item category L – T Code – ME21N                     Steps:  ME21N —>  Enter Item Category L –>, Material (End Product), PO Quantity, Delivery Date, Net Price, Plant –> Click on Item Details –> Tab Material Data — >Components, select Explode BOM –> Click on Components button –>  Enter the sub components –> Go back & Save.                                                                                             Note: Components can be exploded through BOM (T Code CS01) or components can be given manually also.
- Create Transfer Posting with Movement Type 541 to issue the sub components to the vendor T Code -ME2O/ MIGO
- Â Goods Receipt for finished product – T Code -MIGO Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Note:Â During goods receipt, final product will be received with movement type 101 and components will be consumed automatically with 543 movement type
- Invoice Receipt for the services performed – T Code – MIRO
Accounting entries for subcontracting: Example: Components cost is 100 INR, Subcontracting Charges are 40 INR
There will be no account entries at transfer posting 541.
Accounting entries at the time of Goods Receipt 101 (&543) : Finished goods will be received with 101 and the Components will be consumed with Movement type 543.Â
Here Dr means Debit (+Ve) and Cr means Credit (-Ve)
(BSX) Stock A/c of Assembly – 140 Dr
(BSV) Change in Subcontracting Stock -140 Cr
(FRL) Subcontracting Charges – 40 Dr
(WRX) GR/IR Clearing A/c – 40 Cr
(BSX) Stock A/c of Components – 100 Cr
(GBB-VBO) Consumption A/c of Components – 100 Dr
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Accounting entries at the time of Invoice Receipt :
(KBS) Vendor A/C – 40 Cr
(WRX) GR/IR Clearing A/C – 40 Dr
Accounting entries at the time of Payment :
Vendor A/C – 40 Dr
Company Bank A/C – 40 Cr
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Ganesh
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