SAP Master Data

Complete guide for consultant

Prepared by Mubeen Subhedar
Master Data:-

Master data is a static data which we create once but change often. Why there is
need for master data? Let’s take an example, we are raising purchase orders, daily
we raise too many PO’s to vendor. If we do not maintain Vendor master or
Material master as master data then we need to provide vendor and materials
details for each PO. Which will be time consuming and there are chances of errors.
Also it is very difficult for reporting point of view in future.

For different modules we have different master data. From FI Point of view –
Asset master, GL master, Vendor master and customer masters are important, For
CO point of view – Cost center master, Profit center master and Cost element are
important. From SD point of view – Customer master and Material master are
important.

Let’s have a look of MM Master data:-

Below are the important master data’s in SAP MM –

1. Vendor Master
2. Material Master
3. Purchase Info Record
4. Source list
5. Quota arrangement
6. Service Master

Let’s have a look on configuration and functionality of each master data.

1. Vendor master:-
Vendor means supplier, who provides goods or services to us. Vendor master
maintained at three levels - General level, Company code level and purchasing org
level.

Why vendor data maintained at three different levels? Vendor

General data means vendors common data for example – in general level we
maintain vendors name, address, tax number, vat number, payment details etc

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which will be common across all company code and purchasing organisation level.
Company code data may be different for each company code for eg. Vendor ABC
has 14 days payment terms with company code 0001 and 60 days payment terms
with vendor 0002. So we maintain vendor ABC for company code 0001 with 14
days payment term and for company code 0002 with payment term 60 days.

Same this vendor may have different terms and

conditions for more than one purchasing organisation so we maintain same
vendor with different purchasing organizations.

If we want to maintain vendor for company code level

then we can use t-code FK01 / FK02 / FK03. If we want to maintain vendor for
purchasing organisation level then we can use MK01 /MK02 / MK03. If we want to
maintain vendor centrally means company code as well as purchasing org level
then we can use XK01 / XK02 / XK03.

Let’s have a look on vendor master configuration. The most important term in
vendor master configuration is Account Group.

Vendor Account Group:-

Vendor account group plays important role in vendor master because it has main
controlling function. Account group define the type of vendor. We can group
similar type of vendors under account group.

While preparing business blueprint, we understand the client’s current business

operations and then decide what will be our vendor account group. We can
define vendor account groups like below-

Goods vendor
Service Vendors
Transporters
Domestic Vendors
Foreign Vendors
Employees
One-Time Vendors

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Please follow below path for account group creation –

SPRO SAP REF IMG Financial Accounting (New) Accounts Receivable and
Accounts Payable Vendor Accounts Master Data Preparation For
Creating Vendor Master Data Define Account Groups with Screen Layout
(Vendors)

We will get the below screen.

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We can copy the existing vendor account group or we can create new one bu
clicking New entries.

Provide Account group, description, Click checkbox One-time account if it is one

time vendor or else leave it blank. Double click on General data to maintain field
selection.

Click on each tab and maintain field selection as Supress (Hide), Reqd entry, Opt.
entry, Display.

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Double click on Company code data and maintain field selection.

Double click on purchasing data and maintain field selection.

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SAVE.

Create number range for vendor account groups:-

To create number range for vendor account group, please follow below path.

SPRO SAP REF IMG Financial Accounting (New) Accounts Receivable and
Accounts Payable Vendor Accounts Master Data Preparation For
Creating Vendor Master Data Create number ranges for vendor accounts.

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Click on Edit interval.

Click on . Specify number, from number and to number.

If external number assignment needs to maintain, select Ext checkbox.

For internal number assignment, make it unchecked.

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Assign number range to vendor account group:-

To assign number range to vendor account group, please follow below path.

Search for account group and assign number interval to account group.

SAVE.

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Now let’s test the configuration by creating vendor.

T-codes-

XK01 Create vendor (centrally)

XK02 Change vendor (centrally)
XK03 Display vendor (centrally)
XK04 Vendor Changes (Centrally)
XK05 Block Vendor (Centrally)
XK06 Mark vendor for deletion (centrally)
XK07 Change vendor account group
XK99 Mass maintenance, vendor master
XKN1 Display Number Ranges (Vendor)

Provide company code, purchasing organisation and our newly created vendor
account group.

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Insert all the details like name, search term , address, tax number, vat number,
bank details.

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Insert company code details like reconciliation account, Payment term, Payment
method etc.

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Insert purchasing organisation details.

Click on Yes.

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Partner functions:-

Partner means an individual or organisation which interacts with business.

Function means the different roles. A vendor plays different roles in purchasing.
Vendor is first the ordering address, then the supplier of goods, then the invoicing
party, and finally the payee. For this reason different partner functions are
assigned to vendor.

Let’s take an example – We have vendor 10000 – ABC Limited with whom we do
the business. We define Vendor 10000-ABC as ordering address, so the purchase
order will be sent to this vendor. If we define vendor 10000-ABC as Goods
supplier, then this vendor will supply the goods.

We can determine which of the partner roles are optional and which are
mandatory via the Customizing functions. If no other roles have been maintained,
the data of the Vendor role applies.

Below are the important partner functions in SAP.

Vendor (VN)
Ordering address (OA)
Goods supplier (GS)
Invoicing party (PI)

Let’s have a look on partner function configuration.

Partner roles:-

Please follow below path

SPRO SAP REF IMG Material Management Purchasing Partner

Determination Partner Roles Define Partner Roles.

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For new partner roles creation, Click on New Entries; provide two digit
alphanumeric key, Provide description for partner role and Specify partner type
(eg. LI means vendor) and SAVE.

Note: We cannot edit partner types; we can only choose partner types provided
by SAP.

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Define permissible partner roles per account group:-

In this step we assign partner roles created previously to our vendor account
groups. Only assigned partner roles will be available for selection when creating
vendor master.

To assign partner roles, please follow below path.

SPRO SAP REF IMG Material Management Purchasing Partner

determination Partner roles Define permissible partner roles per account
group.

Click on New Entries, Provide newly created partner roles and assigned it to
vendor account group.

Press Enter and SAVE.

Define Partner Schema:-

Partner schema consist of group of partner roles which are assigned to vendor
account groups at three different levels: Purchasing organisation, vendor
subrange and plant.

While creating vendor, we select account group. Based on account group and
level, system will determine partner schema. All the allowed partner roles of
partner schema will be copied in vendor master record.

To define partner schema, please follow below path –

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SPARO SAP REF IMG Material Management Purchasing Partner
Determination Partner Settings in Vendor Master Record Assign Partner
Schema to account groups.

We can define certain roles in schema as mandatory and no change.

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Assign partner schema to account groups:-

In this step we assign partner schema to vendor account groups.

To do so, please follow below path.

SPARO SAP REF IMG Material Management Purchasing Partner

Determination Partner Settings in Vendor Master Record Assign Partner
Schema to account groups.

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Let’s test our configuration.

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 2. Material Master:-
Material master is one of the most important master data in MM. T-code MM01
is used to create Material, MM02 for change and MM03 for display. Different
department specific data maintained views. For example, purchasing related data
is maintained in purchasing views. Material valuation related data maintained in
Accounting view and planning related data maintained in MRP view.

We maintain material master at Client level, Plant level, Storage location level and
Sales Org. level.

The main attributes of Material master is Material number, Industry sector and
Material type.

Material number is unique 18- character field that can be entered manually or can
be created automatically by the system based on type of number assignment. For
external number assignment, we need to enter material number manually while
for internal number assignment, system will create the material number when we
save.

Industry sector controls the screen sequence and screen setup. We can create
our own industry sector as well. The standard system contains the following
industry sectors.

Plant engineering and construction (A)

Chemical industry (C)
Mechanical engineering (M)
Pharmaceuticals (P)

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Material Type:-

Material type defines the type of material means it is grouping similar attributes
material. Material type has many controlling functions –

Number assignment
Number range
Procurement type
Screen setup
Price control
Account determination
Quantity update and value update.

SAP Provides default material types, but we can create our own material types.

Below are the lists of default material types.

ROH (raw materials)

HALB (semi-finished products)
FERT (finished products)
HIBE (operating supplies)
NLAG (non-stock material)
UNBW (non-valuated materials)

NLAG- Non stock material is not managed on quantity as well as value basis.

For example – office supplies and stationary.

UNBW- Non valuated material is managed on quantity basis but not on value
basis.

Let’s have a look on material type configuration:-

We will create a new material type as ZRAW.

Please follow below path for Material type configuration.

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SPRO SAP REF IMG Logistic General Material Master Basic Settings
Material Type Define attributes of material types.

Always copy material type from already existing material types. We will copy from
ROH.

Select Material type ROH and click on Copy As.

Provide new material type code and description. Field reference defines the field
selection in material master means which field will be required or optional or
display or hide. We can define the allowed views in Material master under User
departments. We can define the internal and external procurement are allowed
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for this material type of not. Also we can define pricing method for this material
type (Moving Average price-V or Standard Price S).

After all changes, press Enter.

Now select Material type and click on Quantity/ Value updating.

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Here we can define the quantity and value update for our valuation area (plant or
company code).

Save.

Now let’s define the number ranges for Material type.

Please follow below path.

SPRO SAP REF IMG Logistic General Material Master Basic Settings
Material Type Define attributes of material types.

Here, first we will define our number group and then we will assign our material
type to this number group.

Go to menu Group and click on Maintain.

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Again go to menu Group and click on Insert.

Provide Group name and put From number and To number. Press Enter.

As we can see our number group is available at the bottom. Select our number
group and search for material type.

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Double click on Material type or select material type and click on Select element.
It will turn to blue.

Now Right click and click or Assign element group or select menu Edit and click on
assign element group.

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Our material type will be assigned to our number group.

Save.

Let’s test our configuration by creating material.

T-code MM01.

Select Industry sector and select our newly created material type.

We will get the allowed views list for this material type.

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Select all and click on Organisational level.

As we can see our material number is 40000. Provide description for the material
and other details in all views and SAVE.

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Now, let’s learn about Material master field selection.

We want division field should be mandatory(required). It is now display mode.

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First find the technical details for this field. Select field and press F1.

Click on Technical information.

MARA-SPART is a screen field for Division.

Follow below path for filed selection.

SPRO SAP REF IMG Logistic General Material Master Field selection
Assign field to filed selection group.

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Click on filed name and search for field MARA-SPART.

As we can see for MARA-SPART filed 218 selection group is assigned.

Click on to see how many field are assigned to this selection group.

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As we can see for Field selection group 218, only one field is assigned, which
means whichever settings we do for this selection group will impact on only this
field.

Now for filed selection group 218, we are defining field reference 0001 as Reqd
Entry.

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SAVE.

Now we have to assign this field reference to our material type.

Let’s test the configuration.

T-code MM01

As we can see Division field is required now.

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Industry Sector:-

Industry sector controls the screen sequence and screen setup.

To create new industry sector please follow below path.

SPRO SAP REF IMG Logistic General Material Master Field selection
Define Industry Sector and Industry-Sector-Specific Field Selection.

Click on New Entries. Provide Industry Sector code, description and field reference.

SAVE.

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Let’s test the configuration.

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Material group:-

We can group similar characteristics material under one material group. For
example – A company which is manufacture computers can define material group
as Desktop, laptop, server etc.

The main use of material group is for reporting purpose. We can do spent analysis
with the help of material group. Also we can define roles and responsibilities of
end user according to material group.

To define new material group go to –

SPRO SAP REF IMG Logistic-General Material master Settings for key
fields Define material group.

We can define material group by copying existing material group or by clicking

new entries button.

Click on new entries. Provide Material group and material group description.
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SAVE.

Let’s test the configuration.

T-code MM01.

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 3. Purchase Info Record:-
Purchase info record is a relationship between vendor and their material. In PIR,
we maintain the current and future prices of material, Delivery data, Vendors
data and texts.

In SAP, We have two types of texts. Info record note is used for internal
comments only. Internal comments will be copied in to PO but will not copy to
the output. Purchase order text will be copied in to PO as well as output.

We maintain purchase info record at Client (general level), Purchasing

organisation level and plant level. When we create PO, system searches info
record for purchasing organisation / plant combination. If there is no such info
record, system searches for purchasing organisation only.

We have four types of info record categories.

Standard – For standard procurement type.

Subcontracting – For subcontracting procurement type.
Pipeline – For pipeline procurement type.
Consignment – For consignment procurement type.

Let’s create Purchase Info Record.

T-code ME11.

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Now to maintain scales, click on Conditions.

Select condition type and click on option Scales.

Maintain scale price.

SAVE.

Let’s test the functionality.

T-code ME21N.

Fill the details like vendor, Material, Purchasing organization, Plant etc and click
enter

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Insert quantity as 1and press enter. We can see price is picked as 4.

We can see Info record 5300000000 is picked by system.

Change the quantity as 110 (between 100 to 199), we can see price will picked as
3.

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Change the quantity as 210 (above 200), we can see price will picked as 2.

We can define the number range and field selection for Purchase Info Record.

To define number ranges for PIR, please follow below path.

SPRO SAP REF IMG Material Management Purchasing Purchase Info

Record Define number ranges

To define field selection for PIR, please follow below path.

SPRO SAP REF IMG Material Management Purchasing Purchase Info

Record Define screen layout.

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 4. Source List:-
Source list a list of valid source of supply for a material. Source list means list of
sources (vendors) available for a particular material to procure. We have two
types of source determination. One is Quota arrangement and second one is
source list. The first preference is for quota arrangement; if quota arrangement is
not maintained then system will try to find information from source list.

We can define the source list requirement at plant level. For this Go to SPRO
SAP Ref. IMG Logistics Material Management Purchasing Source list.

Alternatively, we can define source list requirement in material master purchasing

view.

We can create source list with ME01. For mass creation of source list we can use
ME05. Below are the important t-codes related to source list.

Maintain source list - ME01

Display source list - ME03
Display changes to source list - ME04
Analyze source list - ME06
Reorganize source list - ME07
Generate source list - ME05
Display source list for material- ME0M

Lets create source list.

T-code – ME01.

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 5. Service Master:-
The master data for the procurement of services can be stored in service master
records. For service procurement, service master record needs to be created. We
can create/ change / display service master record with the help of AC03.

We have two types of services, planned services and unplanned services. Planned
services means the services whose nature and scope is known to us at the start of
procurement transaction. We maintain unplanned services with value limit only.
Unplanned services means services that cannot be specified in details because the
nature and scope is unknown initially.

Service category: -

It is key used to differentiate between services according to their usage. The

service category is the most important criteria for structuring service master
records. It provides a default value for the valuation classes. Service master
records can be assigned to number ranges on the basis of the service category.

The organisation status indicates the area in which service master record are used.
Service categories are assigned to organisation status. The following
organizational statuses can be maintained for service categories.

BDS – (Basic Data Status) –

Click this indicator to store basic data in service master record.

CNST – (Controlling Status) –

Click this indicator to store controlling data in service master record.

PUST – (Purchasing Data Status) –

Click this indicator to store purchasing data in service master record.

SDST – (Sales & Distribution Data) –

Click this indicator to store sales & distribution data in service master record.

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To define organisation status for service categories please follow below path –

SPRO SAP REF IMG Material Management External Service Management

Service Master Define Organisation status for service categories.

We have AS01, AS02, and AS03 default organisation status for service category.

We are creating ZOSC organization status with Basic data, controlling, MM and SD.

The below service categories are available in standard system.

ALL - Complete service

GRND - Basic services
SERV - Services, Purchasing

We can define our own service categories. For eg– Internal service and External
service. To do so please follow below path.

SPRO SAP REF IMG Material Management External Service Management

Service Master Define Service Categories.
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Assigning number ranges to Service Category:-

We can assign internal or external number ranges to service categories. To do so,

please follow below path.

SPRO SAP REF IMG Material Management External Services Management

Service Master Assign Number Range.

Here we need to first create number range group and then we need to assign our
service category to number range group.

To define number range group, go to menu group and click on Maintain.

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Specify number group and provide from number and to number. Press Enter.

Select our number group and search for our service category.

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Double click on service category or click on select element.

Service category will turn to blue.

Right click and select option Assign element group or select menu Edit and click
on assign element group.

Service category assign to number group.

SAVE.

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Lets test configuration by creating service Master.

T-code AC03.

Provide description and select service category.

Fill all the relevant data in tab Basic data, standard serv. Data, purch. Data etc.

SAVE.

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Go to t-code AC03. We can see our service master created with number 70000.

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 6. Quota arrangement:-

Quota arrangement is used only when we want to divide our share of business
within two or more vendors.

The quota arrangement is valid for a certain period of time and specifies exactly
how the quantities are to be distributed amongst each source of supply.

We can set the quota arrangement for in-house production as well as for external
procurement.

The quota specifies which portion of the total requirement should be procured
from a given source.

If we want to work with splitting quota arrangements, we will enter a minimum

quantity.

Quota rating is used to determine the amount of material that is to be assigned to

particular source or vendor. The source with lowest quota rating represents the
valid source.

Quota Rating = [Quota Allocated Quantity + Quota Based Quantity] / Quota.

Here Quota Allocated Quantity is total quantity from all orders that is procured
from a particular source. Quota Base Quantity is quantity from new source of
supply. Quota is total requirement of material that is given to a particular source
of supply.

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