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1) Organizational structure

Addition 1: Client - The client is a unit within an SAP ERP system that is self-contained oth

in legal and organizational terms! and in terms of data! with se"arate master records and aninde"endent set of tales# $rom a usiness %iew"oint! the client re"resents a cor"orate grou"! for

e&am"le# The client is the highest hierarchical le%el in the SAP ERP system# S"ecifications or

data that you ma'e and enter at this le%el a""ly to all#

Addition 2: Com"any code - A com"any code is the smallest organizational unit of e&ternal

accounting for which a com"lete! self-contained oo''ee"ing system can e re"licated# A

com"any code re"resents an inde"endent unit "roducing its own alance sheet! for e&am"le! a

com"any within a cor"orate grou" (client)#

Addition 3: Plant - The "lant is an organizational unit within logistics that sudi%ides

an enter"rise from the %iew"oints of "roduction! "rocurement! and materials "lanning#

Addition 4: Storage ocation - The storage location is an organizational unit that facilitates

the differentiation of stoc's of materials within a "lant# *n%entory management on a +uantity asis is carried out in the "lant at storage-location le%el# The "hysical in%entory is also carried

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out at this le%el# A storage location is defined y means of a four-character al"hanumeric 'ey that

is uni+ue in the "lant#

Addition 5: The %aluation area - is the organizational le%el at which material +uantities and

%alues are managed# *t is essential for "roduct costing that a %aluation area e&ists for each

 "lant# ,ithin each %aluation le%el! you can differentiate etween %alues and +uantities for

%aluation (in-house "roduction and e&ternal "rocurement) y using different %aluation ty"es# *n

Customizing for materials management (define %aluation ty"e)! alance sheet %aluation is set u"at com"any-code or %aluation-area le%el# Selection of %aluation-area le%el automatically causes

the creation of a %aluation area for each "lant# To use "roduct costing and order

costing! in%entory must e %aluated at "lant le%el#

) Plant

Definition: The  "lant is a logistics-ased organizational element that is used y all the logistics

modules# The "lant is assigned to a com"any code! and a com"any code may ha%e many "lants

assigned to it# *n "roduction "lanning! the main organizational element is the "lant# A "lant is

ty"ically configured in con.unction with the com"any code and %aluation area due to ta& rules

and regulations

Additional 1/ A "lant is a "lace where goods and ser%ices are/

• Produced0

• Stored0

• Procured0

• Consumed0

• istriuted#

Additional 2/ E&am"les of "lants are/

• $actories

• Central warehouses

•Cor"orate head+uarters

• Sales offices

Additional 3: Once a "lant is configured! it must e assigned to se%eral other

organizational elements to assure cross-functional integrations# 2ere is an e&am"le of where

the "lant will e assigned/

• Com"any code

• 3usiness area

• Sales organization

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• Purchasing organization

Additional 1/ Plant 4 Com"any Code

• A "lant is assigned to e&actly one com"any code

• Each "lant has a uni+ue numer ! which remains the same across com"any codes# This

means that "lants that elong to different enter"rises cannot ha%e the same numer 

• A "lant is di%ided into storage locations that contain "hysical stoc'# Each storage location

is assigned to e&actly one "lant

• Sales organizations are assigned to "lants# Each sales organization can e assigned to

se%eral "lants (an n/m relationshi")

• Sales organizations are assigned to "lants# Each "urchasing organization can e assignedto se%eral "lants (an n/m relationshi")

Additional 2: Plant 4 5aluation areas

6) Purchasing grou"

Setting: Created in Customizing y choosing Materials Management  →  Purchasing  → Create Purchasing Groups# 

Definition:

• *nternally/ the "urchasing grou" is res"onsile for the "rocurement of a material or class

of materials#

• E&ternally/ it is the "rinci"al channel for an enter"rise7s dealings with its %endors#

Additional 1: The "urchasing grou" is not assigned to other units of the enter"rise structure in

SAP ERP#

Additional 2: in sim"le word you can say "urchasing org is the "urchase de"artment and the "urchasing gr" is the gr" of "eo"les with in it !who ta'es care for the "urchase for diffrent

de"artment

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8) Purchasing organization

Definition: An organizational unit sudi%iding an enter"rise according to the re+uirements of

Purchasing# *t "rocures materials and ser%ices! negotiates conditions of "urchase with %endors!

and is res"onsile for such transactions

Additional 1: 9ou can incor"orate "urchasing into the com"any structure y assigning

the "urchasing organization to a com"any code and to "lants# This means that you can ta'e into

account whether "urchasing is organized on a centralized or decentralized asis in your

com"any# 9ou can ha%e a comination of these two organizational forms# 9ou can assign se%eral

 "urchasing organizations to one com"any code# 2owe%er! a certain "urchasing organization can

only elong to one com"any code# 9ou can decide not to assign the "urchasing organization to a

com"any code (cross-com"any-code "urchasing)# There is an m/n

relationshi" etween "urchasing organizations and "lants# *n other words! you can assign se%eral "lants to one "urchasing organization! and one "lant to se%eral "urchasing organizations#

Additional 2:

• A "urchasing organization can e assigned to se%eral com"any codes# (: Cor"orate-

grou"-wide "urchasing)#

• A "urchasing organization can e assigned to one com"any code# (: Com"any-s"ecific

 "urchasing)#

• A "urchasing organization can also e&ist without eing assigned to a com"any

code# Since each "lant must e assigned to a com"any code! the latter can e determined%ia the "lant at the time of each "rocurement transaction e%en if the "rocuring "urchasing

organization has not een assigned to a com"any code#

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• A "urchasing organization must e assigned to one or more "lants# (: Plant-s"ecific

 "urchasing)#

• A "urchasing organization can e lin'ed to one or more other "urchasing

organizations# (: reference "urchasing organization)

• A "urchasing organization can e di%ided into se%eral "urchasing grou"s that areres"onsile for different o"erational areas#

Links: htt"/;;hel"#sa"#com;er"

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• Statistical analysis y di%ision

A sales area is a uni+ue and allowale comination of a sales organization! distriution channel!

and di%ision# Each Sales and istriution document is assigned to e&actly one sales area# This

assignment cannot e changed# A sales area can elong to only one com"any code# This

relationshi" is created y the assignment of the sales organization to the com"any code in

Customizing#

The shi""ing "oint is the organizational element that manages your shi""ing acti%ities# Each

outound deli%ery is "rocessed at a shi""ing "oint# A shi""ing "oint can e a "hysical location!

for e&am"le! a loading doc'! a mail room! or a railroad de"ot# *t can also e a logical location!

for e&am"le! a grou" of em"loyees res"onsile for "rocessing ne&t-day deli%eries or less-than-

truc'load orders# Shi""ing "oints are assigned to "lants# A shi""ing "oint should ha%e

 "hysical "ro&imity to the "lant to which it is assigned# Bore than one shi""ing "oint can e

assigned to a "lant# Se%eral "lants can also ha%e a shared shi""ing "oint assigned to them! for

e&am"le! se%eral "lants in same "hysical "ro&imity sharing the same railroad de"ot#

Links: htt"/;;hel"#sa"#com;sa"hel">8

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• ,hether the material numer is assigned internally or e&ternally

• ,hich numer range inter%al the material numer comes from

• ,hich screens a""ear and in which se+uence

• ,hich de"artment-s"ecific data you ha%e to enter 

• ,hether +uantity changes in the material master record are u"dated

• ,hether %alue changes to financial accounting stoc' accounts are u"dated

Additional 4: The material ty"e determines the "rocurement ty"e of a material! for e&am"le!

whether the material is "roduced in-house! "rocured e&ternally! or oth

Additional 5: Baterial numering is defined at the client le%el

Additional 6: uring configuration! your com"any can decide how to %iew material

masters# The material master field has a ma&imum of 1@ characters# 9oucan configurations tem"late to "ro%ide rea's in the material numer! for e&am"le! 16-8=D-

@# *n addition! if you do not intend to use all 1@ characters from the eginning! you can s"ecify

whether leading zeros are to e dis"layed#

Additional 7: The engineering wor'ench (E,3) enales material master records to e created

for new 3OB items# The material is usually created immediately# *t is generally the case that

3OB maintenance cannot wor' with material master records that are only "lanned#

Additional 8: The BRP "rofile allows users to set default %alues for BRP data fields and

to determine whether the %alues can e changed during material master maintenance# *f a change

is made to a default %alue in an BRP "rofile and the field cannot be changed using material

master maintenance! the system automatically changes the field %alue in all material masters

lin'ed to that s"ecific BRP "rofile#Additional 9: The forecast "rofile allows users to set default %alues for forecast data fields and

to determine whether the %alues can e changed during material master maintenance# *f a change

is made to a default %alue in a forecast "rofile and the field cannot be changed using material

master maintenance! the system automatically changes the field %alue in all material masters

lin'ed to that s"ecific forecast "rofile#

Additional 10: *n addition to the BRP "rofile! users creating BRP %iews can use and

assign BRP grou" to the material in the material master ( MRP 1 %iew)# The BRP grou"

is defined in configuration under the BRP section# *t is used to a""ly field %alues to a large

numer of materials# Caution/ ,hen using BRP grou"s! e aware that the field %alues do

not a""ear in the material master# This is different from the BRP "rofile#

@) Baterial master record configuration

Definition:9ou can structure the material master according to your com"any7s re+uirements/

• 9ou can remo%e screens! which are not re+uired! from the screen se+uence#

• 9ou can create your own screens! y adding or deleting screen modules#

• 9ou can influence indi%idual fields in the screen modules#

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Each logical screen consists of se%eral related field grou"s# *n ECC these are referred to as

suscreens# The fields assigned to each screen module cannot e c!anged in "#sto$i%ing#

*n Customizing for the material master! you can/

• Create and maintain screen se+uences

• Baintain logical screens (%iews)

• Baintain the order of logical screens in a screen se+uence

• etermine which suscreens a""ear on which logical screens

• Assign influencing factors for field selection to a screen se+uence

• Assign a user or user grou" to a screen se+uence

• Preset the default organization le%el! default industry sector! and logical screens for a user or grou" of users

Setting: *n Costomizing

Additional 1: 2ere you can configure for which transaction this settings will e a""lied

Additional 2: 2ere you define which user will e assigned to which user grou"

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Additional 3: 2ere you define material ty"es to ref#material ty"es

Additional 4: *ndustry sector 

Additional 5: Creation of the new material ty"e

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Additional 6: 2ere you define filed selection grou" and can configure fields of the BB

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Additional 7: Baterial ty"e configuration

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Additional 8: Plant s"ecific field-references

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Additional 8: *ndustry-s"ecific field references

Additional 9: ,hich of the following can e used to influence the screen se+uence

and attriutes (re+uired! %isile! hidden) of the material master record#

Choose the correct answer(s).

 A Fser*

 3 Baterial ty"e C Plant

  *ndustry

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 E Transaction

Answer/ 3 C E

Baterial ty"e! "lant! industry! and transaction as well as "rocurement indicator can all e

influencing factors in controlling the screen se+uence and field attriutes of a material master

record#

) Guantity;5alue u"dating of material

Setting:

Definition:

Additional 1: $or e%ery new created "lant you ha%e to define how the material ty"e is treated for 

+uantity and %alue u"dation# *f you create a new "lant y co"y! then e%erything should e li'e in

the co"y from "lant# so you should chec' how the material ty"e is setu" in your other "lants!

instead of loo'ing for other material ty"es in the same "lant# if neither +uantity nor %alue has a

flag! then you can only "urchase with account assignment# ?o stoc' is added to your in%entory!

no %alue for this stoc'! all costs are "osted to e&"ense accounts# if you ha%e only +uantity u"datetic'ed! then you manage in%entory without %alue! which is the standard setting for F?3,

material ty"e# 2ere you order as well with account assignment# The recei"t is "osted to

in%entory! while the %alue goes directly to cost account# Any goods issue from stoc' is then

without any further costs# the usual setting is +uantity and %alue u"date ! you manage +uantities

with %alues# only now you can ha%e a "rice! any mo%ement is %aluated and affects financial

accounts# %alue only is something s"ecial for Retail industry solution! it is not used in standard

ERP#

Additional 2: Guantity F"dating S"ecifies that the material is managed on a +uantity asis in

the material master record for the rele%ant %aluation area# 5alue F"date/ S"ecifies that the

material is managed on a %alue asis in the material master record for the %aluation area

concerned# The %alues are u"dated in the res"ecti%e H; accounts at the same time# as &o# said

at fo' so$e $ate'ial t!e'e o(es a'e c!ecked and fo' so$e $ate'ials o(es a'e not selected

the Gty and 5alue are u"dated ased on %aluation area

 

1

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• 9ou wish to use different %alues for materials for each "lant#

11) eleting a 3OB

3ills of material can e deleted in se%eral ways#

9ou can delete ills of material using/

• The deletion function

• eletion flags

9ou can/

• elete the entire 3OB

• elete indi%idual items

3OBs can e deleted/

• ,ithout history

• ,ith history using engineering change management

Authorization grou"s control who can delete a ill of material

Additional 1: Fsing the delete function! the 3OB is remo%ed from the system immediately#

*f engineering change management is used! the 3OB is deleted on the %alid-from date of the

change master record#*f you set the deletion indicator in the 3OB header! the 3OB is deleted

during the ne&t reorganization run#

Additional 2: eletion at header le%el remo%es the entire 3OB! whereas deletion at item

le%el remo%es only the s"ecified item#

16) Baterial Baster deletion

All records flagged for deletion are deleted during a reorganization run "ro%ided they are no longerbeing used, for example, as a BOM header. Deletion is carried out in these steps:

1. Material master is agged for deletion.

2. Material master is selected for a reorganiation run.

!. "eorganiation run is executed.

1) Area of 5alidity (3OB)

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Definition: #he area of $alidity de%nes &hich plants can use a bill of materialAdditional 1: 'ou can extend the area of $alidity by assigning the same bill ofmaterial (&ith the same internal BOM number) to a material in di*erent plants. +fyou do this, note that still only one BOM exists, so any changes you may mae &illa*ect all plants.

Additional 2: #here must be a plant $ie& for the BOM header and all the itemmaterials in each plant that the BOM is assigned to.Additional 3: Material BOMs can be e*ecti$e on di*erent organiational le$els. -material BOM can manage data that is directly rele$ant to production. +n this case,the area of $alidity is the plant. #he plant is a place of &or &here all the necessary&or scheduling acti$ities are organied, for example:

• lanning of material re/uirements

• 0reation of routings

*n this case! you create a "lant-s"ecific 3OB# 'ou can also create a group BOM. #his is a BOM

&ithout reference to any one plant.  #he group BOM can be made e*ecti$e forindi$idual plants using the plant assignment function.Additional 4: lantspeci%c BOMs are independent of each other and existseparately in the system (BOM number).

13) *+, 'ec#'sion

Definition: - BOM is recursi$e if the product contains a component that has the sameobect number as the product. "ecursion may be an error, but in some cases it maybe intentional

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Additional 1: +f you &ant to create a recursi$e BOM, set the Recursivenessallowed  indicator in the BOM item.

14) BOM reporting

Defnition:  #he BOM explosion ans&ers the /uestion, &hat a product consists of.

1=)

12) #estions conce'ning *+,.s

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-ns&er 3

14. -ns&er A B C D

15. -ns&er 6

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