Materials Management With Sap S 4hana Pdf Free Download
Materials Management with SAP S/4HANA: A Comprehensive Guide
If you are looking for a way to optimize your materials management processes, reduce costs, and improve customer satisfaction, then you might want to consider using SAP S/4HANA. SAP S/4HANA is a powerful and intelligent ERP system that can help you manage your materials from procurement to inventory management, and beyond. In this article, we will explain what materials management is, what SAP S/4HANA is, and why you should use it for your materials management needs. We will also cover the main features and functionalities of materials management with SAP S/4HANA, and how you can get started with it.
What is Materials Management?
Materials management (MM) is a core functionality in SAP S/4HANA that drives logistics and supply chain operations. Its purpose is to manage processes such as purchasing, goods receiving, material storage, consumption-based planning, and inventory. Materials management helps you meet market demand by performing activities such as planning stock levels, minimizing work-in-process inventory, fulfilling customer orders, and collaborating with suppliers and other vendor partners. Materials management revolves around three flows:
materials management with sap s 4hana pdf free download
Material flow: This is focused on the materials themselves, and how they move from supplier to customer. Material flow begins when raw materials are ordered from a supplier, continues as the materials are turned into finished products, and typically ends when headed out into transportation channels. In cases where returns are made by customers, the material flow process will continue as the product is sent back to the manufacturer.
Information flow: This is focused on order management, things such as delivery status and order turnaround time. This is important for providing transparency between the business and its customers, many of whom are looking for accurate and real-time information about the status of their orders.
Financial flow: This is focused on the value of the materials being used in the creation of a product. This is important for calculating values such as cost of goods sold (COGS) and for maintaining accurate bookkeeping in areas such as inventory accounts and accounts payable.
In addition to these flows, materials management plays an important role in larger and end-to-end business processes, such as:
Procure-to-pay: In this process, users identify the raw materials they need to produce certain products, solicit quotes from suppliers, and choose the best offer for their manufacturing needs. Since this deals with acquiring materials, the material and financial flows are affected.
Plan-to-product: In this process, businesses select the amount of raw and packing materials they need from their inventory and begin work on creating the product. Since this deals with transforming materials, the material and information flows are affected.
Order-to-cash: In this process, businesses receive orders from customers, confirm availability of products, deliver products to customers, and collect payments. Since this deals with selling products, the material, information, and financial flows are affected.
Maintenance management: In this process, businesses perform preventive and corrective maintenance on their equipment and facilities, and order spare parts and services as needed. Since this deals with maintaining assets, the material, information, and financial flows are affected.
What is SAP S/4HANA?
SAP S/4HANA is a next-generation ERP system that leverages the power of in-memory computing, cloud technology, and artificial intelligence to deliver a simplified and intelligent business suite. SAP S/4HANA is designed to help businesses run faster, smarter, and more efficiently in the digital age. Some of the key benefits of SAP S/4HANA are:
Real-time insights: SAP S/4HANA uses the SAP HANA database, which can process massive amounts of data in real time and provide instant analytics and reporting. This enables businesses to make faster and better decisions based on live data.
Simplified processes: SAP S/4HANA eliminates redundant data and processes, and streamlines the core business functions. This reduces complexity and improves productivity and performance.
Personalized user experience: SAP S/4HANA offers a modern and intuitive user interface with SAP Fiori, which adapts to different devices, roles, and preferences. Users can access the information and functions they need with ease and convenience.
Innovation potential: SAP S/4HANA enables businesses to leverage new technologies such as artificial intelligence, machine learning, blockchain, and Internet of Things (IoT) to create new business models and opportunities.
Why Use SAP S/4HANA for Materials Management?
Materials management is one of the core functionalities of SAP S/4HANA, and it offers many advantages over traditional ERP systems. Some of the reasons why you should use SAP S/4HANA for materials management are:
Improved visibility and control: With SAP S/4HANA, you can have a complete and accurate view of your materials across the entire supply chain, from sourcing to delivery. You can also monitor and control your inventory levels, stock movements, quality issues, and costs in real time.
Increased efficiency and agility: With SAP S/4HANA, you can automate and optimize your materials management processes, such as procurement, inventory management, goods movement, and invoice verification. You can also adapt to changing market conditions and customer demands with flexible and responsive planning tools.
Enhanced collaboration and integration: With SAP S/4HANA, you can connect and communicate with your suppliers, customers, and other partners seamlessly and securely. You can also integrate your materials management processes with other business functions, such as finance, sales, production, and service.
Better customer satisfaction: With SAP S/4HANA, you can deliver the right products to the right customers at the right time and place. You can also provide them with accurate and timely information about their orders, deliveries, invoices, and returns.
Master Data in Materials Management with SAP S/4HANA
Master data is the foundation of materials management in SAP S/4HANA. It is the data that defines the characteristics and attributes of the materials, vendors, business partners, purchasing information, etc. Master data is used throughout the materials management processes to ensure consistency and accuracy. The main types of master data in materials management with SAP S/4HANA are:
Material Master Data
Material master data is the data that describes the physical properties, technical specifications, procurement details, valuation methods, storage conditions, and sales data of a material. Material master data is organized into different views, such as basic data, purchasing data, sales data, accounting data, etc. Each view contains specific fields that are relevant for a particular business function. For example, the purchasing data view contains fields such as purchasing group, order unit, delivery time, etc. Material master data is identified by a unique material number, which can be either internally or externally assigned.
Vendor Master Data
Vendor master data is the data that describes the general information, company code data, and purchasing organization data of a vendor. Vendor master data is used to manage the relationship between the business and its suppliers. Vendor master data is organized into different views, such as general data, company code data, purchasing organization data, etc. Each view contains specific fields that are relevant for a particular business function. For example, the company code data view contains fields such as reconciliation account, payment terms, payment methods, etc. Vendor master data is identified by a unique vendor number, which can be either internally or externally assigned.
Business Partner Data
Business partner data is the data that describes the general information, role-specific data, and relationship data of a business partner. Business partner data is used to manage the interaction between the business and its customers, suppliers, employees, and other stakeholders. Business partner data is organized into different categories, such as person, organization, group, etc. Each category contains specific fields that are relevant for a particular type of business partner. For example, the person category contains fields such as first name, last name, date of birth, gender, etc. Business partner data is identified by a unique business partner number, which can be either internally or externally assigned.
Purchasing Information Data
Purchasing information data is the data that describes the conditions and terms of a purchasing agreement between the business and a vendor. Purchasing information data is used to store and retrieve information such as prices, discounts, delivery dates, quantities, etc. Purchasing information data is organized into different types, such as info records, contracts, scheduling agreements, etc. Each type contains specific fields that are relevant for a particular type of purchasing agreement. For example, the info record type contains fields such as material number, vendor number, purchasing organization, etc. Purchasing information data is identified by a unique combination of key