SAP MM – Questions & Answers

SAP MM (Materials Management) is the SAP module that manages procurement, inventory, material valuation and invoice verification across the supply chain.

It integrates with FI (financial postings), CO (cost centres), SD (deliveries), PP (production) and QM (quality). Its main components are:

• Master data: Material master, vendor master, purchasing info records and source lists.
• Purchasing (MM-PUR): Purchase requisitions, RFQs, purchase orders, contracts and scheduling agreements.
• Inventory Management (MM-IM): Goods receipts, goods issues, transfer postings and physical inventory.
• Invoice Verification (MM-IV): Matching vendor invoices against purchase orders and goods receipts.
• Material valuation: Standard and moving average pricing, automatic account determination.
• Consumption-Based Planning (MM-CBP): MRP, reorder point and forecast-based planning.

Level: Beginner

Key terms: SAP MM, procurement, inventory management, material valuation, invoice verification

MM uses a hierarchy of organizational units: client at the top, followed by company code, plant and storage location for stock, and purchasing organization and purchasing group for buying.

Unit	Purpose	Key point
Client	Highest level; a self-contained system environment with its own master data.	Master data can be client-wide.
Company code	Smallest legal and accounting entity responsible for balance sheets and profit and loss statements.	Configured in FI; transaction OX02 is commonly used.
Plant	Operational unit such as a factory, warehouse or distribution centre.	Assigned to a company code; OX18 is commonly used for assignment.
Storage location	Place within a plant where stock is physically kept.	Stock quantities are managed at this level.
Purchasing organization	Negotiates conditions with vendors and is responsible for purchasing contracts.	Can be assigned to company codes and plants; OX01 and OX17 are commonly used for assignments.
Purchasing group	Buyer or group of buyers responsible for purchasing activities.	Not a legal unit; used for reporting and responsibility.

Level: Beginner

Key terms: Client, company code, plant, storage location, purchasing organization, purchasing group

A plant is an operational and valuation unit; a storage location is a physical stock area inside a plant.

• A plant can have many storage locations, but a storage location belongs to exactly one plant and is unique only within that plant.
• Valuation is normally performed at plant level (table MBEW), while stock quantities are tracked at storage location level (table MARD).
• MRP, purchasing data and planning parameters are maintained at plant level.
• Example: Plant 1000 (Bangalore factory) with storage locations 0001 (raw materials), 0002 (finished goods) and 0003 (scrap).

Level: Beginner

Key terms: Plant, storage location, MBEW, MARD, inventory

A purchasing organization can be plant-specific, company-code-specific, cross-company-code, or a reference purchasing organization.

• Plant-specific: Assigned to a plant to purchase for that plant.
• Company-code-specific: Assigned to one company code and can serve the plants assigned to that company code.
• Cross-company-code: Supports centralized purchasing for plants belonging to multiple company codes.
• Reference purchasing organization: Allows another purchasing organization to use centrally negotiated purchasing conditions.

Assignments are configured in SPRO under Enterprise Structure and Materials Management assignment settings, including assignments to company codes and plants.

Level: Intermediate

Key terms: Purchasing organization, plant assignment, company code, reference purchasing organization, SPRO

The material master is the central record of all data about a material, organised into views so each department maintains the data it needs.

Create, change and display material master records using MM01, MM02 and MM03.

Main views:

• Basic Data 1 and 2, and Classification.
• Sales and Purchasing.
• MRP 1 to 4.
• Plant Data / Storage 1 and 2.
• Quality Management, Accounting 1 and 2, and Costing.

Key tables:

Table	Content
MARA	General material data at client level.
MAKT	Material descriptions.
MARC	Plant-level material data, including MRP and purchasing information.
MARD	Storage location data and stock quantities.
MBEW	Material valuation data, including price control, prices and valuation class.

The available views depend on the material type, system configuration, user authorizations and the organizational levels selected during creation.

Level: Beginner

Key terms: Material master, MM01, MM02, MM03, MARA, MAKT, MARC, MARD, MBEW

A material type groups materials with the same business characteristics, such as raw material or finished product, and controls key behaviour of the material master.

Code	Material type	Typical use
ROH	Raw material	Purchased and used in production.
HALB	Semi-finished product	Produced in-house and further processed.
FERT	Finished product	Produced in-house and sold.
HAWA	Trading goods	Purchased and resold without processing.
DIEN	Service	Services represented in purchasing processes.
NLAG	Non-stock material	Consumed on purchase without normal inventory management.
UNBW	Non-valuated material	Quantity tracked without inventory value.

A material type controls the number range, available views, field selection, procurement defaults, and quantity and value updates. It also influences valuation and account determination in combination with other configuration, including the valuation class.

Level: Beginner

Key terms: Material type, ROH, HALB, FERT, HAWA, NLAG, UNBW, valuation class

A material type is a technical classification that controls system behaviour; a material group is a business grouping used for purchasing analysis and reporting.

• Material type: Controls material master behaviour, such as number ranges, available views and inventory updates.
• Material group: The MATKL field groups materials or services with similar characteristics, such as packaging, electronics or stationery.
• Material groups support purchasing reports, source determination and purchasing processes, including items without a material master where permitted.

In short, the material type determines how the system treats a material, while the material group helps users organise and analyse purchasing.

Level: Beginner

Key terms: Material type, material group, MATKL, purchasing analysis, reporting

The vendor master stores supplier data in three levels: general data, company code data and purchasing organization data.

Level	Data stored	Table
General	Name, address, country and bank details.	LFA1
Company code	Reconciliation account, payment terms and payment methods.	LFB1
Purchasing organization	Order currency, Incoterms, partner functions and schema group.	LFM1

• The account group controls the number range and field status of the vendor master.
• In ECC, vendors can be created using XK01 (central), MK01 (purchasing) or FK01 (accounting).
• In SAP S/4HANA, suppliers are managed as Business Partners, commonly using transaction BP.
• The reconciliation account links the vendor subledger to the general ledger.

Level: Beginner

Key terms: Vendor master, Business Partner, LFA1, LFB1, LFM1, account group, reconciliation account

Procure-to-pay runs from determining a requirement, through purchasing and goods receipt, to invoice verification and payment.

Step	Activity	T-code	Document created
1	Requirement determination (manual or MRP)	MD01N / ME51N	Purchase requisition
2	Source determination and RFQ	ME41, ME47, ME49	RFQ, quotation
3	Purchase order creation	ME21N	Purchase order
4	Goods receipt	MIGO	Material and accounting documents
5	Invoice verification	MIRO	Invoice document
6	Payment to the vendor	F110 (FI)	Payment document

A goods receipt increases stock and posts to the GR/IR clearing account; the invoice clears GR/IR and creates the vendor payable. This three-way link between PO, goods receipt and invoice is the core control in MM.

Level: Beginner

Key terms: Procure-to-pay, PR, RFQ, PO, MIGO, MIRO, GR/IR, F110

A purchase requisition (PR) is an internal request to the purchasing department to procure a material or service in a given quantity and by a given date.

• Creation: Manually with ME51N, or automatically from MRP, plant maintenance, production or project systems. The data is stored in table EBAN.
• Change and display: ME52N, ME53N; list display with ME5A.
• Release: If a release strategy is active, the PR must be approved with ME54N (individual) or ME55 (collective) before it can be converted.
• Conversion to PO: Use ME21N with reference to the PR, or ME58 when the source is fixed.

A PR does not commit funds or create a legal obligation; the PO does.

Level: Beginner

Key terms: Purchase requisition, ME51N, EBAN, ME54N, ME55, ME21N

A Request for Quotation (RFQ) invites vendors to quote prices and terms; the vendor’s reply is maintained as a quotation and used to select a supplier.

• Create an RFQ with ME41, from scratch or with reference to a PR.
• Enter vendor replies with ME47 (maintain quotation) and display them with ME48.
• Compare quotations with ME49 (price comparison list), then reject the remaining quotations with ME44.
• A quotation can update the purchasing info record, so the price is picked up automatically in the PO.
• The standard RFQ/quotation document type is AN.

Level: Beginner

Key terms: RFQ, quotation, ME41, ME47, ME49, ME44, document type AN

A purchase order (PO) is a formal, legally binding request to a vendor to deliver materials or perform services under agreed terms.

A PO has a header (EKKO), items (EKPO), schedule lines (EKET) and a history of follow-on documents (EKBE). It is created with ME21N.

Item categories define how the PO item is processed:

Category	Meaning
Standard (blank)	Normal procurement of a material
L	Subcontracting
K	Consignment
U	Stock transfer
S	Third-party
D	Service
B	Limit
M	Material unknown

Account assignment categories determine where the cost is posted:

• K: Cost centre.
• A: Asset.
• F: Internal order.
• P: Project.
• U: Unknown.

Stock items usually need no account assignment because their costs are posted to inventory.

Level: Intermediate

Key terms: Purchase order, EKKO, EKPO, EKET, EKBE, item category, account assignment

A purchasing info record stores the relationship between a vendor and a material, including price, delivery time and tolerances.

• Types: Standard, subcontracting, pipeline and consignment.
• Data: Vendor material number, planned delivery time, over/under-delivery tolerance, minimum order quantity, conditions (prices and discounts) and net price.
• Tables: EINA (general data) and EINE (purchasing organization data).
• T-codes: ME11 (create), ME12 (change), ME13 (display); list displayed with ME1M.

The system uses the info record to propose price and delivery time when a PO is created. It is also used for source determination in MRP.

Level: Intermediate

Key terms: Purchasing info record, EINA, EINE, ME11, ME12, ME13, ME1M

A source list defines which vendors or contracts are allowed or blocked as a source of supply; a quota arrangement splits requirements between sources by percentage.

Aspect	Source list	Quota arrangement
Purpose	Limit or fix permitted sources	Distribute requirements across sources
Maintained with	ME01	MEQ1
Control	Fixed, blocked or MRP-relevant source; validity dates	Quota percentage and quota base quantity per source
Activation	Source list requirement flag at plant level or in the material master	Quota arrangement usage in the material master

Example: Split a requirement 60% to vendor A and 40% to vendor B. The system uses the quota rating (allocated quantity relative to the quota) to decide which source gets the next order.

Level: Intermediate

Key terms: Source list, quota arrangement, ME01, MEQ1, source determination, quota rating

A release strategy is an approval workflow that blocks a purchase requisition or purchase order until the required people have released it.

It is classification-based, so the strategy is triggered by characteristics such as net order value, document type, plant or purchasing group.

• Create characteristics using CT04 based on communication structures CEKKO (PO header) or CEBAN (PR item).
• Create a class with class type 032 and assign the characteristics using CL02.
• In SPRO, define the release group, release codes, release indicators and release strategy, including prerequisites and values.
• Approvers release documents with ME29N (PO) or ME54N (PR).

Until fully released, a PO cannot be printed, sent or receive a goods receipt, depending on the release indicator.

Level: Advanced

Key terms: Release strategy, CT04, CL02, CEKKO, CEBAN, ME29N, ME54N

A contract is a long-term agreement with a vendor, against which release orders are created; a scheduling agreement already contains delivery schedule lines and is used for regular deliveries.

Aspect	Contract	Scheduling agreement
Document types	MK (quantity), WK (value)	LP, LPA
Orders	Separate release orders (POs) are created	Schedule lines are maintained on the agreement
Delivery dates	Specified in each release order	Delivery schedule lines and releases (forecast, JIT)
T-codes	ME31K, ME32K	ME31L, ME32L
Best for	Negotiated prices over a period and irregular orders	Repetitive, scheduled supply (for example, automotive)

A quantity contract is limited by total quantity; a value contract is limited by total value and may cover many materials.

Level: Intermediate

Key terms: Contract, scheduling agreement, MK, WK, LP, LPA, ME31K, ME31L

A goods receipt is posted with MIGO using movement type 101 against a purchase order, which increases stock and creates a material document and an accounting document.

• Material document: Records the quantity movement (table MATDOC in S/4HANA; MKPF/MSEG in ECC).
• Accounting document: Debits stock (transaction key BSX) and credits GR/IR clearing (WRX) for stock materials.
• Related movement types: 102 (reversal), 103 and 105 (receipt into and release from GR blocked stock), 122 (return to vendor).
• Tolerances: Over-delivery and under-delivery tolerances come from the PO item or info record and control whether an excess receipt is accepted.
• If the material is subject to quality management, stock goes to quality inspection stock and an inspection lot is created.

Level: Intermediate

Key terms: MIGO, movement type 101, MATDOC, MKPF, MSEG, BSX, WRX, GR/IR

Invoice verification, done with MIRO, posts the vendor invoice by comparing it with the purchase order and goods receipt, a check known as the three-way match.

• The three documents compared are the PO (price and quantity ordered), the goods receipt (quantity delivered) and the invoice (price and quantity billed).
• Posting debits GR/IR clearing and credits the vendor account. Price differences post to the stock or price difference account, depending on price control.
• If the invoice differs by more than the allowed tolerance, it is blocked for payment and must be released with MRBR.

Tolerance key	Meaning
PP	Price variance
DQ	Quantity variance
BD	Form small differences (automatic posting of small differences)
ST	Date variance
AN / AP	Amount for items without / with order reference

Tolerances are configured in OMR6.

Level: Intermediate

Key terms: MIRO, three-way match, GR/IR, MRBR, OMR6, invoice tolerance

Automatic account determination posts MM transactions to the right general ledger accounts using transaction keys, valuation class and movement type, configured in OBYC.

The system looks up the account using the chart of accounts, valuation grouping code, transaction key, general modification (for example, an account modifier on the movement type) and valuation class from the material master Accounting view.

Transaction key	Used for
BSX	Inventory postings (stock account)
WRX	GR/IR clearing
GBB	Offsetting entries for stock postings (consumption, scrap, goods issue)
PRD	Price differences (standard price)
UMB	Price differences from revaluation
KDM	Exchange rate differences

Example: A goods issue to a cost centre (movement type 201) debits the consumption account found via GBB (modifier VBR) and credits the stock account found via BSX.

Level: Advanced

Key terms: OBYC, automatic account determination, BSX, WRX, GBB, PRD, valuation class

Purchasing document types classify purchasing documents and control their number range, field selection and behaviour, for example NB for a standard purchase order.

Type	Document	Typical use
NB	Standard purchase order / purchase requisition	Normal external procurement
FO	Framework order	Limit-based ordering over a period
UB	Stock transport order	Transfer between plants in the same company code
MK	Quantity contract	Long-term agreement by quantity
WK	Value contract	Long-term agreement by value
LP	Scheduling agreement	Scheduled repetitive deliveries

Document types are defined in SPRO under Materials Management > Purchasing. Each type is linked to number ranges that can be internal (system-assigned) or external (user-assigned).

Level: Intermediate

Key terms: Purchasing document type, NB, FO, UB, MK, WK, LP, SPRO, number range

In subcontracting, you send components to a vendor who assembles them into a finished product that you then receive and pay for the service only.

Process steps:

• Create a subcontracting PO with item category L for the finished material. The system reads the BOM to propose components.
• Provide components: Use movement type 541 via ME2O or MIGO. The components remain your property and are tracked as special stock O (stock provided to vendor).
• Goods receipt: Receive the finished product using movement type 101. The system automatically consumes the components with movement type 543.
• Invoice verification: The vendor bills for the processing service, and the component value is already included in the product cost.

The subcontracting cockpit (ME2ON) helps monitor component provisioning and shortages. A subcontracting info record can hold the processing charge.

Level: Intermediate

Key terms: Subcontracting, item category L, BOM, movement types 541 and 543, special stock O, ME2ON

In consignment, the vendor keeps stock at your site but still owns it, and you pay only when you consume or withdraw it.

• Create a consignment info record for the vendor and material, and a PO with item category K.
• Goods receipt: Movement type 101 K increases consignment stock (special stock K). It is non-valuated, so there is no financial posting.
• Withdrawal: Consume the stock, for example with movement type 201 K to a cost centre, or transfer it to own stock using 411 K. A liability to the vendor is created.
• Settlement: Run MRKO periodically to settle the consumed quantities with the vendor.

Advantages: Lower inventory cost and no capital tied up in vendor-owned stock. Return of unused stock uses movement type 122 K.

Level: Intermediate

Key terms: Consignment, item category K, special stock K, movement types 101 K, 201 K, 411 K, MRKO

A stock transport order moves stock from one plant (supplying plant) to another (receiving plant) using a purchase order with item category U.

• Create the STO: Use ME21N with document type UB for plants in the same company code and enter the supplying plant.
• Goods issue: Post movement type 351 at the supplying plant to move stock into stock in transit for the receiving plant.
• Goods receipt: Post movement type 101 at the receiving plant to book the stock into unrestricted use.
• One-step transfer: Movement type 301 can be used as an alternative without stock in transit.

For an inter-company STO involving plants in different company codes, a delivery and billing step is required, for example using VL10B, because the transfer between legal entities must be invoiced.

Level: Intermediate

Key terms: STO, ME21N, UB, item category U, movement types 351, 101, 301, VL10B

In third-party procurement, a customer order triggers a purchase order to a vendor, who ships the goods directly to the customer, so you never hold stock.

• A sales order item with item category TAS creates a purchase requisition automatically.
• The PR is converted to a PO with item category S, using the customer’s address as the delivery address.
• There is no goods receipt. The vendor’s invoice is verified in MIRO, and the cost is linked to the sales order; then the customer is billed.

This process is an example of MM-SD integration.

Level: Intermediate

Key terms: Third-party procurement, drop shipment, TAS, item category S, purchase requisition, MIRO, MM-SD integration

Return goods to a vendor with a return delivery in MIGO using movement type 122, which reduces stock and creates a credit for the vendor.

• Return delivery: Choose Return Delivery in MIGO, reference the original PO or material document, and select the quantity and reason.
• Movement types: Movement type 122 reduces unrestricted stock; movement type 123 reverses it.
• Invoice correction: If the invoice has already been posted, enter a credit memo in MIRO using the Credit Memo transaction type, or use MR8M for invoice cancellation when appropriate.
• Return PO: A PO with the returns item indicator can be used when the return must be tracked and replacement goods are expected.

Level: Intermediate

Key terms: Vendor return, MIGO, movement types 122 and 123, credit memo, MIRO, MR8M, returns item indicator

Service procurement uses a service purchase order (item category D) with a service entry sheet to confirm the work done before invoicing.

• Service master: Maintain service master records using AC01 or use unplanned services.
• Create a service PO: Use ME21N with item category D, service lines, quantities and prices, usually with account assignment such as a cost centre or order.
• Record the service: Enter the work performed in a service entry sheet using ML81N and have it accepted (released) by the responsible person.
• Invoice verification: Verify the invoice with MIRO against the accepted service entry sheet.

Services cannot be stored, so no physical goods receipt exists; the service entry sheet confirms the work performed and takes its place in the process.

Level: Intermediate

Key terms: Service procurement, item category D, service master, AC01, ME21N, service entry sheet, ML81N, MIRO

A movement type is a three-digit key that defines the type of stock movement and controls how the system updates stock, values and accounts.

Movement Type	Description
101 / 102	Goods receipt for PO / reversal
122	Return delivery to vendor
201 / 202	Goods issue to cost centre / reversal
261 / 262	Goods issue to production order / reversal
301	Plant-to-plant transfer, one step
311	Storage location to storage location transfer, one step
321 / 322	Transfer from quality inspection to unrestricted / reverse
343 / 344	Transfer from blocked to unrestricted / reverse
351	Goods issue for stock transport order
501	Goods receipt without purchase order
551	Scrapping
561	Initial stock entry
601	Goods issue for delivery (SD)
701 / 702	Physical inventory gain / loss

Movement types are configured in OMJJ. They control the stock type updated, quantity and value update, account modifier and screen layout. The reversal of a movement type is usually the next number, such as 101 and 102.

Level: Intermediate

Key terms: Movement Type, MIGO, OMJJ, Goods Receipt, Goods Issue, Stock Transfer, Reversal

The main stock types are unrestricted-use, quality inspection and blocked stock, and you move between them using transfer postings in MIGO.

From	To	Movement Type
Quality inspection	Unrestricted	321
Unrestricted	Quality inspection	322
Blocked	Unrestricted	343
Unrestricted	Blocked	344
Quality inspection	Blocked	349
Blocked	Quality inspection	350

Only unrestricted-use stock is available for MRP and issue. Quality inspection stock waits for the usage decision, and blocked stock is held back, for example, damaged goods. Stock in transit is a separate category used for plant-to-plant transfers.

Level: Intermediate

Key terms: Stock Types, Unrestricted Stock, Quality Inspection, Blocked Stock, MIGO, Transfer Posting

A reservation is an internal request to keep stock for later issue from the warehouse; a purchase requisition is a request to buy from an external vendor.

Aspect	Reservation	Purchase Requisition
Purpose	Reserve stock that is already available	Procure something not in stock
T-code	MB21	ME51N
Table	RESB (items), RKPF (header)	EBAN
Follow-on	Goods issue, for example 201 or 261	Purchase order and goods receipt
Owner	Warehouse or plant	Purchasing

Reservations are also planning inputs: MRP treats them as requirements, so it can trigger a purchase requisition if stock is insufficient.

Level: Intermediate

Key terms: Reservation, Purchase Requisition, MB21, ME51N, RESB, RKPF, EBAN, MRP

Physical inventory compares system stock with actual counted stock and posts the differences, using a count document that is created, counted and posted.

• Create: Create the physical inventory document with MI01. This can set a posting block so no movements happen during the count.
• Print: Print the count sheets with MI21.
• Enter count: Enter the counted quantities with MI04.
• Display differences: Review differences with MI20.
• Post differences: Post differences with MI07. Gains use movement type 701 and losses use 702.

Physical inventory procedures:

• Periodic (annual) inventory: A full count on a fixed date.
• Continuous inventory: Counts spread across the year.
• Cycle counting: Counting frequency depends on the ABC indicator. High-value items are counted more often, and the indicator is set in the material master.
• Inventory sampling: Counting a statistical sample to validate the stock value.

Physical inventory documents are stored in tables IKPF (header) and ISEG (items).

Level: Intermediate

Key terms: Physical Inventory, MI01, MI21, MI04, MI20, MI07, Movement Types 701 and 702, IKPF, ISEG, Cycle Counting

Special stocks are stocks that are managed separately from normal plant stock because ownership or assignment differs, such as consignment or sales order stock.

Indicator	Special Stock	Meaning
K	Vendor consignment	Stock at your site owned by the vendor
O	Subcontracting stock	Your components held at the subcontractor
E	Sales order stock	Stock reserved for a specific customer order
Q	Project stock	Stock assigned to a project (WBS element)
W	Customer consignment	Your stock held at the customer’s site

Each special stock has its own stock tables and is reported separately, for example in MMBE.

Level: Intermediate

Key terms: Special Stocks, Vendor Consignment, Subcontracting Stock, Sales Order Stock, Project Stock, Customer Consignment, MMBE

Batch management lets you track a quantity of a material produced or procured together as a separate unit with its own characteristics, such as expiry date or quality grade.

• Activate it with the batch management indicator in the material master (Purchasing or Plant data view).
• Create a batch with MSC1N. Batch characteristics such as shelf life, manufacturing date and potency are held in classification (class type 023).
• A batch level (client, material or plant) defines where batch numbers are unique.
• Batch determination automatically selects batches by a search strategy, for example first-expired-first-out (FEFO).

Batch management is essential in pharma, food and chemicals for traceability and recalls. For individually tracked items, serial numbers are used instead, defined with a serial number profile.

Level: Intermediate

Key terms: Batch Management, MSC1N, Batch Characteristics, Classification, Class Type 023, Batch Level, Batch Determination, FEFO, Serial Number Profile

Stock in transit is stock that has left the supplying plant but has not yet been received by the receiving plant in a stock transport order.

• It is created by the goods issue (movement type 351) against an STO and removed by the goods receipt (101) at the receiving plant.
• It is valuated to the company, but is not available for use at either plant, and it is not included in MRP availability as unrestricted stock.
• It can be reviewed with MB5T (stock in transit report) or in MMBE.

Monitoring stock in transit matters because old stock in transit can indicate delivery problems or missing goods receipts.

Level: Intermediate

Key terms: Stock in Transit, Stock Transport Order (STO), Movement Type 351, Goods Receipt 101, MB5T, MMBE, MRP

A goods issue reduces stock and posts the consumption cost to the receiver, for example movement type 201 to a cost centre or 261 to a production order.

• 201: Goods issue to a cost centre; the cost is charged to the cost centre through the consumption account (GBB with modifier VBR).
• 261: Goods issue to a production order; the cost becomes part of the work-in-process and finished product cost.
• A reservation (MB21) can be created first to secure the stock, and the goods issue is then posted with reference to it.
• Reversals use movement types 202 and 262.

Issues are posted in MIGO (Goods Issue) or, for production, are done automatically by backflushing at confirmation.

Level: Intermediate

Key terms: Goods Issue, Cost Centre, Production Order, Movement Types 201 and 261, MIGO, Reservation, Backflushing, GBB, VBR

Standard price (S) keeps a fixed valuation price, while moving average price (V) is recalculated after every goods receipt or invoice.

Aspect	Standard Price (S)	Moving Average Price (V)
Valuation price	Fixed for a period, set by costing or MR21	Updated automatically on each receipt and invoice
Price differences	Posted to price difference account (PRD)	Posted to the stock value (changes the average price)
Best for	Manufactured goods, stable costing	Purchased and traded goods with fluctuating prices
Stock value	Quantity × standard price	Quantity × moving average price

The setting is stored in the material master Accounting view (MBEW: VPRSV for price control, STPRS for standard price, and VERPR for moving average price). The price control can be changed with a revaluation in MR21.

Level: Intermediate

Key terms: Standard Price, Moving Average Price, Price Control, MBEW, VPRSV, STPRS, VERPR, MR21, PRD

Split valuation lets you keep different valuation prices for the same material, depending on attributes such as origin, quality or procurement type.

• It is built with a valuation category (the attribute used) and valuation types (the possible values, for example IMPORT and DOMESTIC).
• The material is maintained with a header record and separate valuation segments for each type, each with its own stock, price and account.
• Activate split valuation globally with OMWC and then define the categories and types in configuration.

Example: The same raw material bought domestically at 100 per unit and imported at 120 per unit can be valued separately, so cost reporting remains accurate.

Level: Intermediate

Key terms: Split Valuation, Valuation Category, Valuation Type, IMPORT, DOMESTIC, OMWC, Material Valuation

Purchasing prices are calculated through a pricing procedure (calculation schema) made up of condition types such as gross price, discounts, freight and taxes.

• The standard calculation schema is RM0000, assigned through the schema group of the vendor and purchasing organization.
• Common condition types include:
  • PB00: Gross price
  • PBXX: Gross price without discounts
  • RA01: Discount in percent
  • RB00: Absolute discount
  • FRB1: Freight
• Condition records are maintained in the info record (ME11), a contract, or with MEK1.
• An access sequence tells the system in which order to look for a valid record, for example vendor and material, then material only.

The final net price in the purchase order is the result of all condition types in the calculation schema, evaluated in sequence.

Level: Intermediate

Key terms: Pricing Procedure, Calculation Schema, Condition Types, RM0000, PB00, PBXX, RA01, RB00, FRB1, Condition Records, ME11, MEK1, Access Sequence

MRP (Material Requirements Planning) calculates net requirements and creates planned orders or purchase requisitions; the MRP type decides whether and how a material is planned.

MRP Type	Meaning
PD	MRP (requirement-driven planning)
ND	No planning
VB	Manual reorder point planning
VM	Automatic reorder point planning
VV	Forecast-based planning

• MRP run: MD01 (total planning), MD02 (single-item multi-level), MD03 (single-item single-level).
• Results: Planned orders (PLAF) for in-house production and purchase requisitions for external procurement; planned orders can be converted using MD14.
• Review: The stock/requirements list (MD04) and MRP list (MD05).
• Lot-size procedures: EX (lot-for-lot), FX (fixed), HB (replenish to maximum stock), plus periodic procedures (daily, weekly, monthly).

Key MRP parameters include the MRP controller, planning time fence, safety stock, planned delivery time and procurement type.

Level: Intermediate

Key terms: MRP, MRP Types, PD, ND, VB, VM, VV, MD01, MD02, MD03, MD04, MD05, PLAF, Lot Size, Safety Stock

Reorder point planning orders when stock falls below a set level, while forecast-based planning orders based on a forecast of future consumption.

• Reorder point planning (VB / VM): An order is triggered when stock plus open receipts falls below the reorder point. Reorder point = (average daily demand × replenishment lead time) + safety stock. In manual mode (VB), you enter it; in automatic mode (VM), the system calculates it from the forecast.
• Forecast-based planning (VV): The system computes future requirements from historical consumption using forecast models (constant, trend, seasonal) and the forecast run MP30, then creates requirements from the forecast.

Both are consumption-based (they use stock and past usage), unlike MRP type PD, which is requirement-driven (it uses sales orders, production orders and BOM explosion).

Level: Intermediate

Key terms: Reorder Point Planning, Forecast-Based Planning, VB, VM, VV, Safety Stock, Replenishment Lead Time, MP30, MRP Type PD, Consumption-Based Planning

MM updates other modules automatically through shared documents and account determination, so a single goods movement can post to inventory, cost and sales records.

Module	Integration Point
FI	Goods receipt, goods issue and invoice postings via account determination (BSX, WRX, GBB); vendor payables in AP
CO	Goods issue to cost centres and orders (201, 261) posts costs
SD	Delivery (movement 601) reduces stock; availability check; third-party procurement
PP	MRP and BOM explosion; goods issue 261 to production orders; goods receipt 101 from production
QM	Inspection lot created at goods receipt; quality inspection stock; usage decision
PM	Spare parts reservations and procurement for maintenance orders

Because of this integration, configuration errors in MM, such as missing account determination, can block postings in other modules.

Level: Intermediate

Key terms: SAP MM Integration, FI, CO, SD, PP, QM, PM, Account Determination, BSX, WRX, GBB, MRP, BOM, Goods Movement

S/4HANA simplifies the MM data model and processes: a new material document table, Business Partner for vendors, MRP Live, longer material numbers and Fiori apps.

• MATDOC: Replaces the material document tables MKPF and MSEG, and stock aggregates are derived from it.
• Business Partner (BP): The single entry point for vendor and customer master data, replacing XK01/MK01 in daily use.
• Material number: Length extended from 18 to up to 40 characters.
• MRP Live: MD01N runs planning on the SAP HANA database, faster than classic MRP.
• Material Ledger: Mandatory, supporting actual costing and parallel currencies.
• Fiori apps: Apps such as Manage Purchase Orders and Manage Purchase Requisitions complement the classic GUI transactions.
• Universal Journal: Financial postings go to ACDOCA instead of separate FI and CO tables.

Level: Advanced

Key terms: SAP ECC, SAP S/4HANA, MATDOC, Business Partner, Material Number, MRP Live, Material Ledger, Fiori, Universal Journal, ACDOCA

MATDOC is the new single table for material documents in S/4HANA, combining the header and item data previously held in MKPF and MSEG.

• MKPF and MSEG still exist as compatibility views (CDS views), so old reports and code can continue to read them.
• Stock quantity totals are no longer updated in many separate aggregate tables; they are calculated from MATDOC through the Simplified Data Model (NSDM).
• Benefits: A smaller data footprint, fewer aggregate lock conflicts, and faster posting with higher parallel throughput.

Custom code should read standard compatibility views or CDS views instead of accessing the old tables directly. It should not write to these compatibility views.

Level: Advanced

Key terms: MATDOC, MKPF, MSEG, Compatibility Views, CDS Views, Simplified Data Model, NSDM, Material Documents

In S/4HANA, vendors are created as Business Partners with a vendor role; Customer-Vendor Integration (CVI) keeps the BP data synchronised with the vendor tables.

• Use transaction BP to create a partner, then extend it with the roles:
  • FLVN00: Vendor financial accounting data.
  • FLVN01: Supplier purchasing data.
• CVI synchronises BP data with the traditional vendor tables LFA1, LFB1 and LFM1, so existing processes such as purchasing continue to work.
• One partner can hold several roles, for example customer and vendor, which helps avoid duplicate records.

XK01, MK01 and FK01 are not available for creating vendor master data in S/4HANA; users are redirected to BP.

Level: Advanced

Key terms: Business Partner, BP, CVI, FLVN00, FLVN01, LFA1, LFB1, LFM1, Vendor Master Data, S/4HANA

MRP Live (MD01N) performs the MRP calculation directly in the SAP HANA database, which makes planning runs much faster than classic MRP.

• Classic MRP: Runs on the application server and reads data record by record.
• MRP Live: Pushes planning logic to the database and processes data in bulk.
• It plans at MRP area level and processes materials in parallel, helping large planning runs finish faster.
• Some functions work differently. For example, certain modes plan only materials with changed data, and some classic options are not supported.

In S/4HANA, SAP recommends MD01N. The Fiori apps Monitor Material Coverage and MRP cockpit apps support planners.

Level: Advanced

Key terms: MRP Live, MD01N, Classic MRP, SAP HANA, MRP Area, Parallel Planning, Monitor Material Coverage, MRP Cockpit

Analyse the open GR/IR items per purchase order with MB5S, resolve genuine open items by posting the missing invoice or receipt, and clear the rest with MR11.

A GR/IR balance remains when goods receipts and invoices do not match. Typical causes include:

• Goods received but invoice not yet posted, or invoice posted without goods receipt.
• Price or quantity differences between the PO, receipt and invoice.
• Partial deliveries or deliveries that are not completed.

Steps to analyse and clear:

• Run MB5S to see the balance by PO, and check the PO history in ME23N.
• If a delivery or invoice is genuinely outstanding, post it with MIGO or MIRO.
• If it will never arrive or be invoiced, set the delivery completed indicator and clear the amount with MR11 (maintain GR/IR clearing account) to the price difference or write-off account.
• Use F.13 for automatic clearing of balanced items in FI.

Level: Advanced

Key terms: GR/IR, MB5S, ME23N, MIGO, MIRO, MR11, F.13, Delivery Completed Indicator, Invoice Verification

An invoice is blocked when it exceeds a configured tolerance for price, quantity, date or item amount, or when someone blocked it manually; release it with MRBR.

• Blocking reasons: Price variance, quantity variance, date variance, item amount, or a manual block set by the user.
• Tolerances: Defined by tolerance keys such as PP, DQ and ST in OMR6.
• Investigate: Check the PO price and quantity, goods receipt quantity and invoice.
• Fix: Correct the goods receipt or PO and repost the invoice, or accept the variance and release it in MRBR.

Blocked invoices appear in the MRBR list, where an authorised user can release them individually or in bulk.

Level: Advanced

Key terms: Invoice Block, MRBR, OMR6, Tolerance Keys, Price Variance, Quantity Variance, Goods Receipt, Invoice Verification

SAP compares the variance with the tolerance for price variance; within tolerance it posts the invoice, otherwise it blocks it, and the accounting depends on the price control.

• Within tolerance: The invoice posts normally. With standard price, the variance posts to the price difference account (PRD). With moving average price, the variance updates the stock value and average price when enough stock remains.
• Outside tolerance: The invoice is blocked for price and goes to MRBR.
• Root cause: Wrong price in the PO, an outdated info record or condition, or an unplanned delivery cost.

The long-term fix is to correct the price conditions in the info record or contract so future POs pick up the right price.

Level: Advanced

Key terms: Invoice Price Variance, Purchase Order, Tolerance, Standard Price, Moving Average Price, PRD, MRBR, Info Record, Condition Records

Reverse a wrong goods receipt in MIGO (or MBST) using movement type 102, provided the stock is still available and no invoice depends on it.

• In MIGO, choose Cancellation and reference the material document; the system posts movement type 102.
• Alternatively, cancel a material document with MBST.
• If part of the stock was already consumed, you cannot reverse the full quantity; use a return delivery (122) for the remaining stock and correct the rest by other postings.
• If an invoice has already been posted, cancel it first with MR8M, then reverse the goods receipt.

Reversals create new documents with reversed postings; they never delete the original document.

Level: Advanced

Key terms: Goods Receipt, MIGO, MBST, Movement Type 102, Return Delivery 122, MR8M, Material Document Reversal

Compare the stock report with the material document history, find the missing or duplicate posting, correct it, and confirm with a physical inventory count.

• Check stock: MMBE (stock overview), MB52 (stock by storage location) and MB5B (stock on a posting date).
• Review movements: MB51 (material documents) for the material, plant and storage location.
• Common causes: Goods issued before the goods receipt was posted, backflushing without stock, wrong movement type or plant, or missing initial stock entry (561).
• Correct: Post the missing receipt (101, 501 or 561) or adjust through physical inventory (MI01, MI07).

Negative stock is controlled at plant level (OMJ1) and in the material master. Switching it off prevents the problem, but it may block legitimate issues in processes such as backflushing, so many companies allow it only for selected materials.

Level: Advanced

Key terms: Stock Mismatch, Negative Stock, MMBE, MB52, MB5B, MB51, Backflushing, Movement Types, OMJ1, Physical Inventory

Define the plant and its organizational assignments, extend the master data to the new plant and purchasing organization, then maintain the procurement settings.

• Define the plant with OX10 and assign it to the company code with OX18, or copy an existing plant with EC01.
• Define storage locations with OX09 and purchasing groups with OME4.
• Create the purchasing organization with OX08 if needed and assign it to the company code with OX01 and the plant with OX17.
• Set the valuation level and configure account determination for the new plant’s valuation area.
• Extend material masters with MM01 (or mass maintenance) and vendor masters to the new plant and purchasing organization.
• Create info records, source lists and contracts, define MRP parameters and release strategies, and test the full cycle with a PO, GR and invoice.

Level: Advanced

Key terms: Plant Configuration, OX10, OX18, EC01, OX09, OME4, OX08, OX01, OX17, Valuation Area, Account Determination, MM01, MRP, Purchase Order, Goods Receipt, Invoice Verification