SAP MM Configuration & Study Guide Complete Notes: Intro to End

SAP Materials Management (MM) Study Notes

Comprehensive Reference Handbook: Fundamentals, Project Lifecycle, Enterprise Structure, Master Data & Material
Ledger

1. Introduction to SAP & ERP Systems

SAP stands for Systems, Applications, and Products in Data Processing. It is an industry-leading Enterprise Resource
Planning (ERP) software that centralizes operations across business units.
• Core Enterprise Resources: Manages Men, Material, and Money (4Ms).
• Major Enterprise ERP Solutions: SAP, Oracle, Microsoft Dynamics, Tally, PeopleSoft.
• Module Categories:
◦ Functional Modules: SAP MM (Materials Management), FI (Financial Accounting), CO (Controlling), SD (Sales &
Distribution), HR (Human Resources), SCM (Supply Chain Management), PM (Plant Maintenance).
◦ Technical Modules: SAP Basis (System Administration & Networking), ABAP (Advanced Business Application
Programming), SAP S/4HANA (High-Performance In-Memory Platform).

• SAP Release Lineage: SAP ECC 6.0 (Legacy R/3 architecture) → SAP S/4HANA (Latest In-Memory database
system).

2. Types of SAP Projects & Support Structure

Project Type Objective / Scope Key Details & Methodologies

1. Implementation Greenfield installation transitioning a Executed via standard implementation

business from legacy/Non-SAP systems to methodologies (e.g., ASAP or SAP Activate).
SAP.

2. Support Project Handling post-go-live issues, incident Priorities:

tickets, and day-to-day user support. • High (P1): 8-hour resolution SLA
• Medium (P2): 7-day resolution SLA
• Low (P3): 1-month resolution SLA
Includes 24/7 Production Support (Chat & Voice).

3. Rollout Project Replicating existing configuration templates Country Rollout: Deploying globally outside the
to new business units. host nation.
Company Code Rollout: Deploying to new entities
within the parent group.

4. Enhancement Adding specific business features or E.g., extending a live FICO/MM system to include
introducing new modules. HR or custom interfaces.

5. Upgradation Technical and functional upgrade across Converting legacy SAP ECC 6.0 environments into
versions. SAP S/4HANA.

Transport Management: Transport Request (TR)

A Transport Request (TR) is a unique 10-digit number generated whenever configuration changes or custom ABAP
developments are saved. It facilitates secure movement of workbench and customizing changes across the system
landscape (Development → Quality Testing → Production).

3. Procure-to-Pay (P2P) Lifecycle

The standard procurement process controls the movement of materials from demand planning to vendor payment:

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SAP MM Configuration & Study Guide Complete Notes: Intro to End

Procure-to-Pay End-to-End Sequence:

[MRP] Material Requirement Planning → [PR] Purchase Requisition → [PO] Purchase Order → [GR] Goods Receipt →
[IV] Invoice Verification (Billing) → [FI] Vendor Payment

• Purchase Requisition (PR): An internal document created by user departments to notify purchasing of required
quantities and dates.
• Purchase Order (PO): A formal, legally binding contract sent to an external vendor specifying items, agreed pricing,
delivery terms, and schedules.

4. Core GUI Navigation & System Utilities

Command / T-Code Function & Description

/n Forward navigation: cancels the current transaction and opens a new transaction directly.

/o Opens a new session/tab with the designated transaction code.

SPRO SAP Project Reference Object — access point to the Customizing Implementation Guide (IMG).

SM12 Display & unlock locked table entries (resolves "Data locked by user..." error).

5. Enterprise Structure: Definition & Assignment Steps

Step 01: Define Company (Financial Entity) OX15

IMG Path: SPRO → SAP Reference IMG → Enterprise Structure → Definition → Financial Accounting → Define Company
Procedure: Click New Entries. Enter Company Name, Code (Max 6 alphanumeric characters), Street, PO Box, Postal Code, City,
Country (IN), Language Key (EN/IN), and Currency (INR). Click Save.

Step 02: Edit, Copy, Delete, Check Company Code EC01 / OX02
IMG Path: SPRO → SAP Reference IMG → Enterprise Structure → Definition → Financial Accounting → Edit, Copy, Delete, Check
Company Code
Procedure: Copy from standard template (0001) or define new Company Code (4 alphanumeric characters, e.g., GOOG / DIPL) and
maintain company code parameters. Click Save.

Step 03: Assign Company Code to Company OX16

IMG Path: SPRO → SAP Reference IMG → Enterprise Structure → Assignment → Financial Accounting → Assign Company Code
to Company
Procedure: Click Position, search for your Company Code, map it to the defined parent Company, and click Save.

Step 04: Define Plant EC02 / OX10

IMG Path: SPRO → SAP Reference IMG → Enterprise Structure → Definition → Logistics - General → Define, copy, delete, check
plant → Define Plant
Procedure: Copy organizational object from template 0001 or create new (e.g., GOPL / FOSP). Maintain factory calendar, address,
and time zone details. Click Save.

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SAP MM Configuration & Study Guide Complete Notes: Intro to End

Step 05: Maintain Storage Locations OX09

IMG Path: SPRO → SAP Reference IMG → Enterprise Structure → Definition → Materials Management → Maintain Storage
Location
Procedure: Enter target Plant (e.g., GOPL). Click New Entries, specify 4-character Storage Location keys (e.g., SL01 Raw Material,
SL02 Finished Goods), and click Save.

Step 06: Assign Plant to Company Code OX18

IMG Path: SPRO → SAP Reference IMG → Enterprise Structure → Assignment → Logistics - General → Assign plant to company
code
Procedure: Click New Entries. Map Company Code (GOOG) to Plant (GOPL). Click Save.

Step 07: Define Purchasing Organization OX08

IMG Path: SPRO → SAP Reference IMG → Enterprise Structure → Definition → Materials Management → Maintain Purchasing
Organization
Procedure: Click New Entries, define a 4-character key (e.g., GORG) and description. Click Save.

Step 08: Assign Purchasing Organization to Company Code OX01

IMG Path: SPRO → SAP Reference IMG → Enterprise Structure → Assignment → Materials Management → Assign purchasing
organization to company code
Procedure: Assign Purchasing Org (GORG) to Company Code (GOOG). Click Save.

Step 09: Assign Purchasing Organization to Plant OX17

IMG Path: SPRO → SAP Reference IMG → Enterprise Structure → Assignment → Materials Management → Assign purchasing
organization to plant
Procedure: Click New Entries. Map Purchasing Org (GORG) to Plant (GOPL). Click Save.

Step 10: Define Purchasing Group OME4

IMG Path: SPRO → SAP Reference IMG → Materials Management → Purchasing → Create Purchase Group
Procedure: Click New Entries. Define 3-character alphanumeric code (e.g., GPG) representing the buyer/buyer group and contact
details. Click Save.

6. Material Master: Configuration & Attributes

Standard Material Types Overview

Material Type Category Procurement / Usage Nature

ROH Raw Material Purchased externally; consumed in internal

manufacturing processes.

FERT Finished Product Manufactured internally in-house; sold directly to

customers.

HALB Semi-Finished Product Produced in-house and used as assemblies/components

for finished goods.

HAWA Trading Goods Purchased externally and resold directly without

modification.

DIEN / SERV Services Intangible procured activities; non-stockable.

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Material Type Category Procurement / Usage Nature

FHMI Production Resources & Tools Reusable assets/tools required during production work.

Step 11: Maintain Company Code for Material Management OMSY

IMG Path: SPRO → SAP Reference IMG → Logistics - General → Material Master → Basic Settings → Maintain Company Codes
for Materials Management
Procedure: Set current Fiscal Year (e.g., 2026) and Period (e.g., 08) for the Company Code. Enable Allow Backposting (ABR) if
retroactive period posting is required. Click Save.

Step 12: Define Attributes of Material Types OMS2

IMG Path: SPRO → SAP Reference IMG → Logistics - General → Material Master → Basic Settings → Material Types → Define
Attributes of Material Types
Procedure: Select Material Type (e.g., ROH, FERT) → double-click Quantity/Value Updating → check Quantity Updating and Value
Updating for the designated Valuation Area/Plant. Click Save.

Step 13: Define Number Ranges for Material Types MMNR

IMG Path: SPRO → SAP Reference IMG → Logistics - General → Material Master → Basic Settings → Material Types → Define
Number Ranges for Each Material Type
Procedure: Click Intervals. Define 16-digit range (e.g., 0000000000000301 to 0000000000000350). Assign Material Types into
groups. Toggle internal vs. external numbering (EXT checkbox). Click Save.
Number Range Status (NR Status) Calculation Example:
Range: 301 to 350 (Total Capacity = 50 items). If Current Status = 309 → 10 materials already consumed, 40 materials available.

7. Material Valuation & Material Ledger Configuration

Step 14: Define Valuation Area & Grouping OMWD

IMG Path: SPRO → SAP Reference IMG → Materials Management → Valuation & Account Assignment → Account Determination
→ Account Determination Without Wizard → Group Together Valuation Areas
Procedure: Locate Plant/Valuation Area, assign Valuation Grouping Code (e.g., 0001 / Chart of Accounts link). Click Save.

Step 15: Define Valuation Classes & Account Category Ref OMSK
Procedure: Maintain Account Category Reference (e.g., 0001 / GOAR), associate with Material Types, and define Valuation Classes
(e.g., 3000 for Raw Materials, 7920 for Finished Goods / GOVC).

Step 16: Material Ledger Configuration & Activation (S/4HANA Requirement)

If system prompts "Material Ledger must be set productive for valuation area...", execute:
1. OMX2 : Define Material Ledger Type.

2. OMX3 : Assign Material Ledger Type to Valuation Area.

3. OMX1 : Activate Material Ledger (Set Price Determination: 2 = Standard Price / Transaction, 3 = Moving Avg / Multi-level).

4. CKMSTART : Production Startup of Material Ledger → Enter Plant → Execute.

8. Material Master End-User Operations

T-Code Transaction Name Key Parameters / Required Views

MM01 Create Material

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T-Code Transaction Name Key Parameters / Required Views

Select Industry Sector, Material Type (ROH/FERT). Maintain views: Basic

Data 1, Purchasing, General Plant Data / Storage 1, Accounting 1.
Set Base UoM (PC), Price Control (S / V).

MM02 Change Material Modify master fields, descriptions, purchasing values, or account
assignments.

MM03 Display Material Read-only view of material master parameters across organizational units.

MMSC Extend Storage Locations Mass-extend material master records to additional storage locations under
a plant.

MM60 Material Master List Standard reporting transaction to display catalog of materials, valuation
classes, and prices.

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