MM Configuration Tips
MM Configuration Tips
MM Configuration Tips
Views that are preselected in the Select View(s) dialog box (Industry and Retail)
Input and output length of material numbers : (A material number can have a maximum of 18
characters).
Template for displaying or printing material numbers.
You indicate with an underscore any
position in the material number that you do not want to contain a template character.
Form in which material numbers are stored
Output with or without leading zeros
Purchasing
MRP
If the material is used, this parameter assignment has the following effect:
Purchasing : You can perform no further purchasing function for the material; for example,
you can enter no further purchase order for the material. In this instance, you are given a
corresponding error message.
MRP : If you plan requirements for the material, you are warned that the material is one to be
discontinued.
Inventory Management : You can continue to withdraw the material from stores; no message
is given.
To assign a group, in the not assigned group, select the Material Type you want to group.
Then tick the Group you want to assign and click the menu path Edit -> Assign
Element Group.
From the same screen, if you want a new number range intervals, click Group -> Insert
Group.
If you decided to used an external number range, goto transaction OMS2 and tick the field
External no. assignment w/o check.
time taken to reach the level will be longer and during an active period the time taken to reach that
stock could drop.This normally relates with your consumption based planning.
Q system is a system wherein replenishment is done keeping the period constant. The quantity
becomes the variant. In other words you will check for the level of stock at fixed time intervals (daily,
weekly, monthly etc.) compare it with the requirements on that day and trigger the procurement
process for eplenishment. This normally relates with your MRP.
Now there are 4 more factors that could affect the idealistic procurement pattern:
1. Ordering Lead-time.
2. Manufacuring Lead-time
3. Transporting Lead-time
4. Stock conversion Lead-time (or Quality Inspection lead time)
A delay in any or all of the above can have effect on the entire replenishment process and the stock. A
buffer stock must be designed to take into account the above coverage. Again the determination of
your safety stock depends on the accuracy of your forecast. Higher your accuracy, lower your safety
stock. This relationship between forecast accuracy and service level is denoted by factor R. This also
takes into account that the customer demand cannot be always satisfied 100% of the time.
Hence what we have is:
R = Relationship between forecast accuracy and service level (Service Factor)
W = Delivery time (in days) / Forecast Period (in days)
MAD = Mean absolute deviation (parameter for forecast accuracy)
Now
If replenishment lead time is greater than the forecast period by factor W then:
Safety Stock = R x Sq.rt. W x MAD
Else
Safety Stock = R x W x MAD
Now in SAP If the material is produced in-house, the delivery time is: opening period + in-house
production time + goods receipt processing time. It is expressed in workdays. The forecast period is
taken from the material master record and is also expressed in workdays.
If the material is procured externally, the delivery time is: Processing time for purchasing + planned
delivery time + goods receipt processing time. It is expressed in calendar days. The forecast period is
taken from the material master record and is also expressed in calendar days.
As a result of this you will have observed now that the safety stock must cover both the unplanned
material excess consumption, as well as the additional requirements caused by delayed deliveries.
In SAP you can specify a minimum safety stock. If the result of the safety stock calulation by the
system is lower than this limit, the safety stock is automatically set to this value. You enter the
minimum safety stock in the material master record (MRP 2 screen).
Safety Stock:
In IMG -> Materials Management -> consumption Based Planning -> Master Data -> Check MRP Types
(transaction code OMDQ) you use the indicator Calculate Safety Stock so that system calculates the
safety stock automatically.
The safety stock can be calculated automatically for materials planned with one of the consumptionbased planning procedures if:
1. The service level has been maintained in the material master record.
2. Historical data exists
3. The forecast has been carried out for the material.
Dynamic Safety Stock:
If the option Define Range of coverage profiles is chosen in IMG (Tr.Code OM1A) you can determine a
safety stock level that takes into account:
1. Requirements.
2. Range of coverage
The limiting factors to the above are:
1. Maximum and minimum range of coverage ( defined period , that is month, week or PPC planning
calendar)
2. Determination of various periods for the validity of the range of coverage.
The system uses the formula:
Dynamic safety stock = average daily requirements (ADR) x Range of coverage
ADR = Requirements in the specific period / number of days in the total period length (defined period x
standard days)
Please note here that if you carry out the planning run even in the middle of the month the system will
include even the requirements planned at the beginning of the month.
Please also note that you can determine the range of coverage for a maximum of 3 periods.
1. Range of Coverage in the First Period
2. Range of Coverage in the second period
3. Range of coverage on the rest of the horizon
However you have the option of maintaining different coverage for each of these periods.
Based on your customization the system determines the number of days used for calculating your
average daily requirement
Minimum Stock Level (mSL) = ADR x minimum range of coverage
Target Stock Level (Dynamic Safety Stock this is DSL) = ADR x Target range of coverage.
Maximum Stock Level (MSL) = ADR x maximum range of coverage.
Having confirmed the above, I will now try and explain through an example how the system calculates
the Dynamic safety stock:
Presume that the system has determined the ADR as 25 Kgs for a material.
You have set the following in customizing:
Minimum Range of coverage = 2 days
Target Range of coverage = 6 days
Maximum Range of coverage = 10 days
Now the System determines the following;
It is also important to remove the records manually from info record, POs, PRs, reservation etc for
successful deletion of the material.
How to Make Source List as Mandatory for Particular Plant
By Transaction Code : OME5
Convert MRP generated 100 PRs into 100 POs automatically
By Transaction Code : ME59
Creation and Release the PO with Zero Price
Creation and Release the PO with Zero Price By Untick the Inv-Receipt Indicator under Invoice Tab
for Item level and make the Net Price as Zero.
Setting Default Values for Purchasing
By Transaction Code : OMFI
DD02L : ALL SAP TABLE NAMES
DD02T : DESCRIPTION OF TABLE NAMES
DD03L : FIELDS IN A TABLE.
You can access all the transaction codes by using the transaction code 'SDMO'.