Business process

[Former Member]

hello MM Gurs,

Please let me know the MM Business Process?

Ranjit

[Former Member]

answered

[Former Member]

Hi Ranjith,

What Is The DataFlow Of MM?

The dataflow as functional process below are the points:

1) Purchasing Requsition -> sent by inventory dept to purcharsing dept

2) Request for Quotation(RFQ)-> Purchasing Dept shall ask the vendors to give the quotation for the requested materials by inventory.

3) Quotation -> Quotation is sent by vendors to the company

4) Purchase order-> Based on all paramers of a quotation sent by vendors. Vendors are selected from whom the material has to be obtained. The company gives purchase order to the vendor.

5) Good's receipt -> vendors sends the goods to the company with goods receipt

6) Invoice verification -> this done based on good's receipt. this means that the ordered goods have reached or not.

7) Payment -> payment is done based on invoice verification. this is (FI/CO) *-- Santosh Kumaar.M

Full MM Transaction Codes Flow:

RFQ to Vendor - ME41

Raising Quotation - ME47

Comparison of Price - ME49

Creation of PO - ME21N

Goods Receipt - MIGO

Invoice (Bill PAssing) - MIRO

Goods Issue - MB1A

Physical Inventory - MI01( Create doc)

MI04 (Enter Count)

MI07 (Post)

The FI - MM integration:

First you define the g/l master records.

1) Inventry raw material a/c

2) GR/IR clearing a/c

3) Raw material consumption a/c

Above like this you define all required g/l accounts then you will go to T.CODE - OBYC

Double click BSX (this is transaction key)

" GBB

" WRX

" PRD

These are transaction keys important.

Then you go to T CODE - OMSY (this is also important) then

Material creation T Code MM01

then

1) Purchase order T.code ME21N

2) Goods received " MIGO

3) Invoice verification " MIRO

The FI - MM integration finished

Hope this helps you

Prem.

[Former Member]

Please find herewith teh some of the MM business Process

Procurement of Stock Materials

Procurement of External Services

Procurement of Imported Materials

Procurement of asset

Procurement of Capital Material to Manufacturing Plant

Subcontracting

Procurement of Trading Material

Stock Transfer and trasfer posting

Third Party Processing

Also based on industry u can add more bussiness process

To get detailed process

Go to sap help>Sap Best Practices>Baseline Packages>Building Block Library( select 4.7 or 6.0 as per need)>select required country

Hope this will solve ur prob

Vishal....

Reward if usefull

Regards,

[Former Member]

Hi Ranjit,

MM Business process:PR-RFQ-QUOT-PRICE COMPARISION-P.O.GR-IV.

Reward me if it is helpful to you.

ASHOK

[Former Member]

Hi Ranjit

MRP Requirements (demand)-> Purchase Requisition (PR)-> Requisition for Quotation (RFQ) -> Vendor selection (Supplier) ->Purchase Order (PO)-> Goods Receipt

Inspections (Quality Inspection) -> Inventory management -> Invoice Processing /

Invoice Verification

Intra Function Process Flow:

Purchase demand for material -> Evaluate, select

potential source -> Create RFQ -> Selection of vendor -> Create purchase document -> Arrange delivery schedule

Processing of consumable material :

The cost of the materials received are posted directly to a cost center (job order).

The Raw material sent to Production for further process.

Those material can be finished or semi finished products.

Stock transfer processing:

Transfer between internal plants (multi-site inventory management).

Stock transfers can be of Raw Material for further processing.

Transfer of stock can be Finished product for Sales.

Stock transfer is integration between Material Management and Sales & Distribution.

Consignment stocks :

Usually the transfer of ownership of inventory occurs synchronously with the physical flow of the inventory

A vendor may stock parts at the buyer site (enhance maintenance)

Customers try to push the financial burden to vendors

MM has to track vendor-owned stock.

Vendor will deliver the stock as per requirements.

Company will be owner of vendor consignment stock.

Subcontract order processing:

Integrate the subcontractor in the logistics flow

Reserve, issue, receive material

Supply plan (from MRP / forecasting –PP)

The company may maintain parts on subcontractor premises

The company will transfer semi finished material to subcontractor.

Approve the planned requirement.

Issue a requisition

Associate the requisition with a «source of supply»

Create RFQ, obtain bids

Create a subcontract purchase order

Send the purchase order to supplier

Generate purchase order

Issue component material to the subcontractor

Receive shipping notification

Receive items in stock through GR / Send item to Customer.

External services management :

Services are posted to a cost center (material are recorded in an inventory)Process

Requisition (from maintenance, production orders)

Approval cycle

Select, RFQ, accept

Service purchase order

Integrate with FI (cash management, funds control)

I hope it helps.

Reward if useful to u

[former_member218067]

Hi,

Following are some of the additional business processes in MM

Procurement of Services: Basic Process

Accelerated and Simplified Processes

Procurement via Maintenance Plans (PM Plant Maintenance)

Getting the Service Provider to Enter Services Actually Performed

Procurement via Invoicing Plans (Rental, Leasing, Part-Payments)

Procurement Using Blanket Orders (for Low-Value Items)

Hope this is useful

BR

Diwakar

[Former Member]

Hi,

Please find herewith teh some of the MM business Process

1. Stock Puchase

2. Cost Purchase

3. Subcontracing Purchase

4. Consignment and Pipeline Purchase

5. Asset and Project Purchase

6. Stock Trasport Processes

7. Third Party processing

Regards,

DilliB

[Former Member]

Hi Ranjit,

The MM flow is as follow:

1) Purchasing Requsition -> sent by inventory dept to purcharsing dept

2) Request for Quotation(RFQ)-> Purchasing Dept shall ask the vendors to give the quotation for the requested materials by inventory.

3) Quotation -> Quotation is sent by vendors to the company

4) Purchase order-> Based on all paramers of a quotation sent by vendors. Vendors are selected from whom the material has to be obtained. The company gives purchase order to the vendor.

5) Good's receipt -> vendors sends the goods to the company with goods receipt

6) Invoice verification -> this done based on good's receipt. this means that the ordered goods have reached or not.

7) Payment -> payment is done based on invoice verification. this is (FI/CO) *-- Santosh Kumaar.M

Full MM Transaction Codes Flow with table

Purchase Requisition ME51N (Table - EBAN)

RFQ to Vendor - ME41 (EKPO, EKKO)

Raising Quotation - ME47 (EKPO, EKKP)

Comparison of Price - ME49 (EKPO, EKKO)

Creation of PO - ME21N (EKPO, EKKO, EKBE, EKPN, EKKN, EKPV)

Goods Receipt - MIGO (MSEG)

Invoice (Bill PAssing) - MIRO (BSEG)

Goods Issue - MIGO (MSEG)

Physical Inventory - MI01( Create doc) (ISEG)

MI04 (Enter Count) (ISEG)

MI07 (Post) (ISEG)

Hope this helps.

Reward if useful

Shawn