2 Minutes Guide to Create your First Material in S4 HANA

2 Minutes Guide to Create your First Material in S4 HANA

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In this post we will first check the configuration in details required for material master creation in S4 HANA. We will keep configuration minimum possible & use of SAP standard wherever possible.

1. Material Master related configuration

Below are the main configuration required to create material master

1.1 Material Type

Grouping of similar attribute materials . For example -Raw materials, Semi-finished products, or finished products.

Material type determines

  • If the material is intended for a specific purpose such as a configurable material or process material.
  • Material number is assigned internally or externally.
  • The number range of the material number.
  • Which screens appear and in what sequence
  • Procurement of the material -manufactured in-house or procured externally, or both

We will use below SAP standard material type

  • ERSA Spare Parts
  • FERT Finished Product
  • HALB Semifinished Product
  • HAWA Trading Goods
  • LEER Empties
  • LEIH Returnable packaging
  • ROH Raw materials
  • VERP Packaging
  • HAWA Trading Goods

Below is the configuration for let,s say example – Trading Goods (HAWA)

Transaction code – OMS2

Picture : Material Type Configuration

Now click on “Quantity/value updating” & select “QTY Update” & ” Value Update” for your all material type in all your plants (Valuation Area)

So we have selected for our valuation areas PA10, PA20 & PP10

Picture : Qty/value update

1.2 Define Number Ranges for Each Material Type

Here we define the type of number assignment and the number range intervals for material master records. When creating a material master record it is must to assign it a unique number. There are two ways of doing this

1.2.1 Internal number assignment

In this case, a number within the number range interval allowed is assigned by the SAP system. Currently, the maximum length allowed for an internal number is 18.

1.2.2 External number assignment

Here, the user assigns a number within the number range interval allowed. You can define the intervals for external number assignment numerically and alphanumerically. For integration purposes, SAP, currently, allows only the number range length of 18 characters.

Transaction Type ; MMNR

Picture : Number Range Assignment to Material Type

Now let,s create our first material

2. Create your First material in S4 HANA

Here we will create different materials to be used for our car business

2.1 Creation of “Trading Material” -Mat Type “HAWA”

Time needed: 5 minutes.

How to Create your first Material in SAP S4 HANA

  1. Go to MM01 and enter below on the Create Material (initial screen)

    Material Code – PA0101-01
    Material Type -HAWA
    Industry Sector – M Mechanical Engineering
    Press enter

  2. Select the views to be created (Presented from the material type config OMS2)
    Enter organization structure in which material is to be created

    Plant -PA10 (PPIC Chicago Plant)
    Sales Org -PA10 (IC Car Sales Organization)
    Distribution Channel – PA (Car Dealers)
    Press enter

    Material Creation-1

  3. On “Basic Data 1” view

    Enter Description – “First PA01 Material for Car Dealership”
    Enter BUOM – PC
    Enter Division – SR (Spare Parts)
    Enter Material Group – PA10 (IC Car Parts Light)
    Gross Weight – 20 KG
    Net Weight – 18 KG

    Material Master-2

    Material “Packaging Level”

    1 “CARTON” of Material “66” = 6 “PC”
    1 “PALLET” of Material “66” = 8 “CARTON”
    1 “PALLET” of Material “66” = 48 “PC”

  4. On Sales : Sales Org. 1 view

    Enter Delivering Plant -PA10
    Enter Tax Classification -1 (Taxable)

    Tax1

  5. On Sales : Sales Org. 2 view

    Enter General Item Category – NORM
    Enter Item Category Group – NORM
    Acct Assmt Grp Mat. – PA (Products)

    Material Master-4

  6. On Sales : General/Plant view

    Enter Availability Check -KP (No Check) – We will configure this and then activate this for another Material
    Enter Batch Management -Selected
    Enter Transportation Group – PA10 (Normal Transport)
    Enter Loading Group -PA10 (Manual Load)

    Material Master-5

  7. On MRP 2 view

    Enter “Storage loc. for EP” as -PP1A -Std. SLOC, This will be defaulted in PO

    MM-6

  8. On Plant Data / Stor. 1 view

    Enter Storage Condition as P1 (IM Managed stock) – Based on this we can configure different picking SLOC , based on if SLOC is IM managed, WM managed or EWM managed.

    MM-8

  9. On Accounting 1 View

    Enter Valuation Class as 3100 -Trading Goods.
    ML Active checkbox should be already selected and greyed out. If this is not selected then stop here and check ML activation through below given link to the corresponding post
    Enter price control “V” and price as 13 USD

    MM-9

  10. Save the material and you have created your first material successfully !

HINT

On Step 9 “ML Active” checkbox should be already selected and greyed out. If this is not selected then stop here and check ML activation through the link given below.

How to activate Material Ledger in S4HANA in 5 Easy Steps

2.2 Creation of “Packaging Materials” -Mat Type “VERP”

As per definition provided by SAP- “Packaging materials are intended to enclose or hold together the materials that are to be packed. In other words, the material that is to be packed can be packed into or onto the packaging material. The packaging material can be a load carrier. The most important packaging materials include crates, boxes, containers, wire baskets, and pallets”

Picture 13 : Different Type of Packaging Material (Courtesy SAP Help)

We will create two packaging material

  • Packaging Material CARTONSTD -CARTON WITH SSCC GENERATION
  • Packing Material PALLETSTD – PALLET WITH SSCC GENERATION

a) Packaging Material CARTONSTD -CARTON WITH SSCC GENERATION

TCode – MM01, Select Material type as “VERP” – Packaging Material

Picture 14 : Creation of Standard Carton Packaging Material

Packaging material type Standard Carton “SCAR” assigned to packaging material “CARTONSTD”

Picture 15 : Packaging Material type assignment to packaging material

b) Packaging Material PALLETSTD – PALLET WITH SSCC GENERATION

T-Code – MM01, Select Material type as “VERP” – Packaging Material

Picture 16 : Creation of Packaging material & assignment of Packaging Material Type

3. Extension of Material to Other Plants

We need to extend our materials to our other plants in order to be able to do Stock Transfers & STOs

3.1 Extension to intra-company Plant

As per our organization structure We have two plants PA10 & PA20 assigned to PA10 company code as shown in below picture

Picture : Our Car Business Org. Structure

First we will extend our material to PA20 plant which is assigned to same company code (PA10) as PA10 plant

To extend the material Start MM01

  • Enter material as “66”
  • Enter “Copy from.. Material as “66”

Press Enter

System will copy Material type and industry sector from master record as shown in the below screenshot

Picture : Material Extensions

Select all the views

Picture ” Select All the Views

press enter and system will present source & destination organization levels as shown in the below screenshot

Fill the details as shown in the below screenshot

Picture : source & destination organization levels

Note : Sales Organization PA10 serves for both the plants PA10 & PA20.

Please click HERE for details of assignment of plant to sales organizations.

Press enter and system will automatically select extendable screens one by one.

You will be presented “Classification” screen.

Since we have not configuration yet so just come out from this screen by pressing the “Next Screen” button.

You will be presented the “Sales : sales org. 1” screen

Enter Delivering Plant “PA20-PPIC Boston Part”

Picture : Sales : sales org. 1 screen

Press enter and you will be presented “Sales : sales org. 2” screen

Picture : “Sales : sales org. 2” screen

We are not changing anything on the above screen so just press enter and system will present “Sales : General/Plant” screen

Picture : “Sales : General/Plant” screen

We are not changing anything on the above screen so just press enter and system will present “Intl Trade : Export” screen

Picture : “Intl Trade : Export” screen

We are not changing anything on the above screen so just press enter and system will present “Sales text” screen

Picture : “Sales text” screen

We are not changing anything on the above screen so click on “Purchasing” screen

Picture : “Purchasing” screen

We are not changing anything on the above screen so just press enter and system will present “Intl Trade : Import” screen.

Picture : “Intl Trade : Import” screen.

We are not changing anything on the above screen so just press enter and system will present “Purchase order text” screen

We are not changing anything on the “Purchase order text” screen, so click on “MRP 1” screen

Picture : “MRP 1” screen

We are not changing anything on the above screen so just press enter and system will present “MRP 2” screen

Picture : “MRP 2” screen

We are not changing anything on the above screen so just press enter and system will present “MRP 3” screen

Picture : “MRP 3” screen

We are not changing anything on the above screen so just press enter and system will present “MRP 4” screen

Picture : “MRP 4” screen
  • We are not changing anything on the above screen so just press enter and system will present “Advance Planning” screen .
  • We are not changing anything on the “Advance Planning” screen, so just press enter and system will present “Forecasting” screen

Enter Forecast Model as “N-No forecast/external model”

Picture : “Forecasting” screen

We are not changing anything on the above screen so just press enter and system will present “Plant data / Stor. 1” screen

Picture : “Plant data / Stor. 1” screen

We are not changing anything on the above screen so just press enter and system will present “Plant data / Stor. 2” screen

Picture : “Plant data / Stor. 2” screen

We are not changing anything on the above screen, so just press enter and system will present “Quality Management” screen

We are not changing anything on the “Quality Management” screen, so just press enter and system will present “Accounting 1” screen

Picture : “Accounting 1” screen
In the above screen Price is showing as 15.69 USD per price for this material in PA10 Plant
Let,s assume that this material costs 20 USD in PA20 plant due to cost of living difference , overheads etc.
Picture : Price update in plant “PA20”

After changing the price, press enter and system will present “Accounting 2” screen

We are not changing anything on the “Accounting 2” screen, so just press enter and system will ask to save.

Picture : Material Creation is about to complete

Material is now extended to PA20 Plant.

Picture : Material is now extended to PA20 Plant

3.2 Extension to inter-company Plant

We have two companies PA10 & PP10 with plant assignment shown as below

Picture : Our Car Business Organization Structure

Now we have extend our material to the PP10 plant which is assigned to the different company code PP10.

To extend the material Start MM01

  • Enter material as “66”
  • Enter “Copy from.. Material as “66”

Press Enter

System will copy Material type and industry sector from master record as shown in the below screenshot

Picture : Material Extensions to PP10 Plant

Enter source and destination organization structures

Picture : Source/Destination Org Structures

You will be presented the “Sales : sales org. 1” screen

Enter Delivering Plant “PP10- PPELC Fremont Pl”

Also Electrical plant is tax exempt so select Tax classification as “0-Exempt”

Picture : Sales : sales org. 1 screen

Press enter and you will be presented “Sales : sales org. 2” screen

We are not changing anything on the “Sales : sales org. 2” screen so just press enter and system will present “Sales : General/Plant” screen

Change loading group to “PP10-Manual Load”

Picture : “Sales : General/Plant” screen
  • We are not changing anything on the above screen so just press enter and system will present “Intl Trade : Export” screen.
  • We are not changing anything on the “Intl Trade : Export” screen so just press enter and system will present “Sales text” screen.
  • We are not changing anything on the “Sales text” screen so click on “Purchasing” scree.
  • We are not changing anything on the “Purchasing” screen so just press enter and system will present “Intl Trade : Import” screen.
  • We are not changing anything on the above screen so just press enter and system will present “Purchase order text” screen
  • We are not changing anything on the “Purchase order text” screen, so click on “MRP 1” screen
  • We are not changing anything on the MRP 1 screen so just press enter and system will present “MRP 2” screen
  • We are not changing anything on the MRP 2 screen so just press enter and system will present “MRP 3” screen
  • We are not changing anything on the above screen so just press enter and system will present “MRP 4” screen
  • We are not changing anything on the above screen so just press enter and system will present “Advance Planning” screen .
  • We are not changing anything on the “Advance Planning” screen, so just press enter and system will present “Forecasting” screen
  • We are not changing anything on the above screen so just press enter and system will present “Plant data / Stor. 1” screen.
  • We are not changing anything on the above screen so just press enter and system will present “Plant data / Stor. 2” screen.
  • We are not changing anything on the above screen, so just press enter and system will present “Quality Management” screen.
  • We are not changing anything on the “Quality Management” screen, so just press enter and system will present “Accounting 1” screen.
In the above screen Price is showing as 15.69 USD per price for this material in PA10 Plant
Let,s assume that this material costs 20 USD in PP10 plant due to cost of living difference , overheads etc.
Picture : Price update in plant “PP10”

After changing the price, press enter and system will present “Accounting 2” screen

We are not changing anything on the “Accounting 2” screen, so just press enter and system will ask to save.

Material is now extended to PP10 Plant.

Picture : Material is now extended to PP10 Plant

In the previous post, we have activated Material Ledger in 5 Easy Steps. Click on the above link to read in detail.

In the next Post we will load GL master. GL accounts will be required to create/configure further process like BP, MM-FI Integration etc. Click on the above link to read in detail.

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