Understanding Master Data in SAP MM

What Is Master Data In Sap Mm

SAP R/3 operates with live data, meaning that there is no delay between entering the data and having it accessible. When creating any type of data in SAP R/3, it is crucial to ensure that the integrity of the data is maintained. The information in SAP R/3 is divided into two categories −.

Master data refers to centrally created data that is applicable across all applications. It remains consistent over time but requires regular updates. For instance, vendors are a type of master data used for generating purchase orders or contracts. On the other hand, transactional data pertains to the information associated with business transactions and their processing.

– Material Master Data refers to the information and details related to materials or products in SAP MM.

– Vendor Master Data includes the essential information about vendors or suppliers in SAP MM.

Understanding Material Master Data in SAP MM

To keep everything organized, this material master book is maintained at different levels of the organization. It means that there might be one main book for all departments but also smaller books or copies for specific locations or branches within the company.

By having this central record with all necessary details in one place, it becomes easier for everyone in the organization to access accurate and up-to-date information about materials they work with every day.

Material Master Data

Here are the important things to remember about material master data:

The material master consists of four attributes, which we will explore individually in the upcoming sections.

Material Types

Materials that share similar characteristics are categorized and assigned to a specific material type, which enables organizations to effectively manage various materials based on their specific needs. This categorization allows for systematic management of different types of materials, such as raw materials and finished products. To create a material type, the following steps can be followed.

Creating Material Types in SAP MM

To access the settings for material types in SAP MM, navigate to IMG, then go to Logistics General and select Material Master. From there, choose Basic Settings and click on Material Types. Finally, you can define the attributes of different material types.

To begin, go to the Display IMG screen and choose the option “Define Attributes of Material Types” using the path mentioned above.

Step 3 involves entering the necessary details like the name and description of the material type. Afterward, click on Save to create a new material type.

Material Groups

A material group is a category that includes various types of materials with similar characteristics. It allows for the grouping of materials based on common attributes. For instance, if we have different materials that need to be packaged, such as electrical or food products, we can assign them to a specific material group called “packaged materials.” To create a material group, follow the steps provided below.

How to Create Material Group in SAP MM

To access the required settings for key fields in SAP MM, navigate through IMG > Logistic General > Material Master > Settings for Key Fields > Define Material Groups.

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First, navigate to the Display IMG screen and choose the option “Define Material Groups” using the provided path.

In the third step, you need to input the name and description of the material group. Once done, click on Save to create a new material group.

Number Range in SAP MM

When a material master record is created, each material is identified by a distinct number called the material number. There are two methods available for assigning a number to a material.

  • External number assignment − While creating a material, you have to enter your own number (containing alphabets or digits), and that should be unique.
  • Internal number assignment − While creating a material, you need not enter any number. The system automatically generates a unique number to that material.

To establish an internal number range, you can follow the provided instructions.

How to Generate Number Range in SAP MM

To configure the number range for different types of materials in SAP MM, navigate through IMG to Logistic General and then select Material Master. From there, go to Basic Settings and choose Material Types. Finally, define the number range for each specific material type.

To begin, go to the Display IMG screen and choose the option “Define Number Range for Each Material Type” using the given path.

In the third step, we have the option to set a range of numbers for the material. By selecting the EXT checkbox, an external number can be assigned to that particular material. After making these selections, simply click on Save to finalize and save the defined number range for the material.

Number Range Assignment in SAP MM

Once the definition is complete, it is necessary to allocate it to a material group. To assign a number range, refer to the following instructions.

Proceed to the next step by clicking on the Groups tab located on the screen.

In the second step, we have the option to allocate a specific number range to a particular material group. After making the necessary changes, click on Save to save the assigned number range for that material group.

Material Master Creation

The material master in SAP MM stores details about the materials that a company buys, manufactures, or sells. It holds essential information that is accessible at all levels within the organization. To create a material master record, follow the provided steps.

Creating Material Master in SAP MM

Logistics leads to Materials Management, which in turn leads to the Material Master. The Material Master is where materials are created.

Please remember that when performing different transactions in SAP MM, we utilize specific suffixes to indicate the type of action. The suffix “01” is used for creating transactions, “02” for editing transactions, and “03” for displaying transactions.

To begin, select the create option on the SAP Menu screen by following the path mentioned above.

Step 2 – Complete all the necessary information like material number (if using external numbering system), type of material, sector of industry, etc.

Step 3 – Choose the perspectives you wish to update for your material.

Step 4 – Input the plant and storage location names.

In Step 5, input the necessary details in the material views like measurement unit, currency, standard price, moving price, etc. Save the information to create a new material.

Vendor Master Data

The main aspects to consider regarding the vendor master are as follows −.

  • Vendor Master Data is the enterprise main source of vendor-specific data. It includes information on vendors from which a company can procure, or can sell.
  • A vendor master record contains information such as vendor’s name, address, etc.
  • Data in a vendor master record is divided into three categories −
    • General Data − General data is maintained at client level and it is valid for all organizational levels.
    • Accounting Data − Accounting data is maintained at company level and it is valid for all plants belonging to that company.
    • Purchasing Data − Purchasing data is maintained at purchasing organization level.
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The vendor master has three attributes that we will explore individually in the upcoming sections.

Vendor Account Group

Vendors are classified based on their needs, with vendors sharing similar traits being grouped together in a specific category. For instance, all local vendors can be assigned to a single account group. To create a Vendor Account group, follow the instructions provided below.

Creating Vendor Account Group in SAP MM

To define the account group and field selection for vendors in SAP MM, you can navigate through IMG (Implementation Guide) to Logistic General, Business Partner, Vendors, and Control.

To begin, go to the Display IMG screen and choose the option “Define Account Groups and Field Selection (Vendor)” using the path mentioned earlier.

Proceed to step 3 by entering all the required information, including the account group name, general data, and field status. Save your changes and a new Vendor Account Group will be generated.

Number Range

In SAP MM, a vendor is identified by a distinctive number called the vendor number when setting up a vendor master record. Similar to material master, both external and internal numbering systems are used for assigning numbers to the vendor master records.

To define a number range, you can follow the steps mentioned below.

Creating Number Range in SAP MM

To set up the number range for vendor master records in SAP MM, navigate to IMG and select Logistic General. From there, go to Business Partner followed by Vendors and then Control. Finally, choose Define Number Range for Vendor master record.

To begin, go to the Display IMG screen and choose the option “Define Number Range for Vendor Master Record” using the given path.

In the fourth step, we have the option to set a specific range of numbers for identification purposes. By selecting the EXT (external tab) option, we can assign an external number to a vendor if needed. After making these selections, click on Save and a new Number Range will be generated.

What Is Number Range Assignment in SAP MM?

Once a number range has been established, it is necessary to allocate it to a specific vendor group. To assign the number range, follow the instructions provided below.

Proceed to the next step by choosing the Number Range tab on the screen mentioned earlier.

In the second step, you need to assign a number range to a specific vendor group. Once done, save the changes and the number range will be successfully assigned to that particular vendor group.

Vendor Master Creation in SAP MM

The Vendor Master in SAP MM is a database that stores information about vendors that a company can buy or sell goods from. To create a Vendor Master, you need to follow certain steps as mentioned below.

Creating Vendor Master Data in SAP MM

To access the vendor master data creation option in SAP MM, follow these steps: Go to the SAP Menu and navigate to Logistics. From there, select Material Management and then Purchasing. Next, click on Master Data and choose Vendor. Finally, select Central and click on Create.

To begin, go to the SAP Menu screen and choose the option for creating Central Vendor Data. This can be done by following the path mentioned above.

Step 2 involves completing all the necessary information, including the company code, purchasing organization, and vendor number (if external number assignment is used).

Step 3 − Fill in all the details of vendor’s address such as street name, postal code, country.

Step 4 – Enter the required banking information for the supplier.

Step 5 – Complete the required financial details of the supplier.

In Step 6, enter the agreed-upon payment terms between the company and the vendor. Save the information to create a new vendor master record.

Understanding SAP Master Data with an Illustrative Example

Definition: Master data in SAP comprises the core, foundational data that remains relatively stable and provides essential information about entities, objects, or elements used in business processes. Master data serves as a reference point for transaction data.

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The Definition of Master Data

Master data is crucial information that is necessary for the smooth functioning of a business enterprise or unit. It includes data about important business entities, which helps in providing context for various business transactions and operations.

In SAP MM (Materials Management), master data plays a vital role in ensuring efficient procurement and inventory management processes. Here are some key types of master data used in SAP MM:

1. Material Master Data: This includes detailed information about materials or products used by an organization, such as their description, classification, pricing, units of measure, storage locations, etc.

2. Vendor Master Data: It contains essential details about vendors or suppliers with whom the organization conducts business activities. This includes vendor contact information, payment terms, delivery conditions, etc.

3. Purchasing Info Record: This type of master data stores specific purchasing details related to a material from a particular vendor/supplier. It includes price agreements, lead times for delivery, quantity discounts offered by vendors, etc.

5. Bill of Materials (BOM): BOM represents the hierarchical structure and components required to manufacture or assemble a finished product.

7. Routing/Recipe: Routing defines the sequence of operations required to produce goods while recipe outlines the ingredients and quantities needed for producing recipes-based products like food items or chemicals.

8. Customer Master Data: In SAP MM Sales & Distribution integration scenarios customer master records contain relevant customer-related details such as addresses shipping/billing preferences credit limits payment terms sales history etc..

9.Storage Location Data : Storage location-specific settings including stock levels valuation class movement types allowed picking strategies putaway rules etc..

10.Batch Management : Batch management enables tracking traceability control over batches of materials especially in industries like pharmaceuticals chemicals food where batch-related information is critical.

These are just a few examples of master data used in SAP MM. Proper management and maintenance of this data ensure accurate and efficient procurement, inventory management, production planning, and sales processes within an organization.

Is master data considered a database?

In simple terms, master data can be thought of as the foundation upon which a business operates. It provides accurate and reliable information that helps in organizing various processes within an organization. For example, when dealing with inventory management, master data would include details such as product names, descriptions, prices, and stock levels. Similarly, customer master data would contain information like names, addresses, contact numbers, purchase history etc., enabling businesses to effectively manage their relationships with customers.

Having well-maintained master data is vital for businesses as it ensures consistency across different systems and departments. By having accurate and up-to-date information readily available at all times through proper database management practices in SAP MM (Material Management), companies can streamline their operations efficiently while making informed decisions based on reliable insights.

1. Master Data: Essential information used by businesses during database management.

2. Importance: Acts as the foundation for smooth functioning and effective decision-making.

3. Examples: Product details for inventory management; Customer information for relationship management.

4. Benefits: Ensures consistency across systems/departments; Streamlines operations; Enables informed decisions based on reliable insights

MRP master data: An explanation of what it is

Master data plays a crucial role in ensuring successful Material Requirement Planning (MRP) in SAP MM. It consists of essential information that serves as the foundation for effective planning and decision-making. This data includes various details such as customer information, production specifications, purchase orders, transport orders, bill of materials, and more.

– Master data forms the basis for effective Material Requirement Planning (MRP) in SAP MM.

– It encompasses critical information about customers, production details,

purchase orders,

transportation requests,

bill of materials etc.

of each material/product.

– Accurate and updated master data facilitates precise forecasting

of material needs based on customer demands

and production schedules.