Things to remember while implementing SAP MM

Introduction

Here I am sharing my SAP Implementation experience and learnings in one post. This post will help you if you are working in SAP MM Implementation project. This post is a summary of important things to remember while implementing SAP MM module. It will help you to reduce mistakes and save time.

Things to remember in SAP MM Implementation

Material type is finalized first in any SAP MM implementation project. Material types for all logistics modules should be finalized in the blue print phase and its integration with FICO should be discussed at the begining.
While doing an implementation project always remind client to pay attention on the unit of measurement because in the legacy system (Old one) there could be different units and those units are not available in SAP. You might have to create new UoM.
If user wants to create PO in alternate unit of measurement then activate variable puchase order unit in Purchase view of material master.
PO print needs lot of logic for different processes and different set of vendors. Always ready to make changes in it. Even just before go live also.
Providing correct price of material is a challenge for your client because it is maintained at various places in their legacy system. Even they are not sure which one is the correct one. Give them alert at the begining of implemntation.
Many clients does not take purchase info records seriously at the begining of project. You can tell its importance for PO print because sometime PO print needs information from purchase info record.
Never ignore SAP MM master data. Never hand it over to master data team (MDM). Support from functional consultant is necessary.
If material master fails, entire project will fail. Support MDM and Client by giving them proper direction in master data preparation. But do not touch their master data.
MRP is a part of PP module but MM conultant can take ownership of reorder (VB) MRP. Thi can help the maintenance department in spare part planning.
Do not forget to study the existing (legacy) system which your client is using. This will help you to raise new questions to your client on business process mapping.
Study of legacy system can help you to check the additional features and minor logical thing you need to implement in SAP.
Open Purchase orders is a part of open transactions. Work with Finance team rigorusly on open purchase order with account assignment from the begining of the project. Most of the consultants bring it at the last moment.
Do not upload open PRs as a part of open transactions data. Create them manually.
If the count of open PRs is very high then upload them. But make sure that there should not be any release strategy associated with open PR document type.
You must build expertise in LSWM to upload data in SAP. LSMW saves you from critical situations during and after master data upload.
Genrally people think that MM17 is used only for masss change of material master. But remember that you can create material master using MM17.
Whenever you plan any workshop with client then prepare the data in advance and run the end to end cycle multiple times. Plan everything at least two days before workshop.
Never plan workshop of 5 business processes in 5 days. You won’t be able to cover 5 processes in 5 days because your own preparation to explain the S4 details take time.
If you are working on a S4 HANA Public cloud implementation project then alwyas remember that not all scenarios run smoothly in public cloud. It needs a lot of preparation for simple processes before you go to client for the workshop.
Features and screens are different in S4 HANA public cloud therefore never promise anything to your client unless you build a PoC on it.
In S4 HANA Public Cloud there very limited configuration available to change. Therefore always check the configuration thoroughly before making any promise to client
Release stratrgy is not applicable to open purchase transaction data such as Purchase Order, Contract, Purchase Requisition etc.
Always recommend client to do physical inventory before go live and then only provide the inventory balances to upload.
Try to make a contact with end users also during realization phase. End users can give you some unique inputs which core team can’t give.
Take multiple round of client warehouse and understand how different types of materials are managed and stroed in warehouse. This will help you to design and define the storage locations.
Scrap process needs special attenion because end ot end process involves selling of scrap process. So check the coverage of process with client by involving Sales team also.
Subcontracting process involves some special situations also such as scrap generated during subcontracting, additional material povided by subcontractor etc. Never assum that your client has a standard subcontracting. So discuss it in details and create the BoM accordingly.
Some times involvement of PP consultant is critical in subcontracting process because BoM related features are know to them better than MM consultant and BoM feautures helps to map complex processes.
Purchase related reporting is an important aspect of any SAP Implementation. Therefore study all the PO related Fiori reports thoroughly before going to client. You can say that PO report can tell you “how many POs quantities are yet to be delivered?, how many POs are yet to be invoiced?“, “How many open POs are there?“. All such statements can help you to build truct in your client.
In case of contract client is interested to know “How many contracts are going to expire in next 30 days?” or “How much value of contract leakages or Off contract spendings are there?“.
You can refer Procurement overview Fiori report which as a lot of Fiori cards to answer client quesries mentioed above in point 28 and 29.
GR based invoice verification check box in PO item can do a lot of things in purchase cycle. Explain its importance to client thoroughly.
Do not activiate GR based invoice verification check box in open purchase orders because there can be POs which are partially delivered or partially invoice or fully delivered but not invoiced. If you activate the GR based invoice and GR quantity does not match then invoice posting will into error during hyper care.
Do not make GR based invoice verification default and grey out this at the begining of project (Go Live). Keep it editable and not set for open POs. Open POs need this check box to be removed otherwise invoice can go into error for partial GR cases. Once things are stablized you can mark the GR based invoice verification by using LSMW. But if you have made it grey then you need to move a TR to make it editable.
There are some business situations where invoice is posted before GR posting. In such situations also do not set GR based invoice verification chedk box otherwise invoice posting will go into error.
Sometime business situation demends an invoice posting without PO. In such circumstances post the invoice for the material directly to the GL account.
To achieve the business situation mentioned in above point you need to configure -> “Activate Direct Posting to G/L Accounts and Material Accounts” in SPRO.
Lean services in SAP is a latest innovation launched by SAP for service purchase. You need to prepare well about it before conducting any client workshop. At Client side production and maintenance people do not understand the concept of lean services easily. So prepare well for it. make a good quality presentation with examples of service purchase from production and maintenance point of view.
Always keep production, maintenance and sales team in loop when you make a certain filed mandatory in PR screen because the field will become mandatory in the production order, maintenance order and sales order also and can create issues while saving that order. For ex: If you make Tracking number or requisitioner as mandatory field in PR screen then this field will become mandatory in order screen also because SAP can trigger PR from production order, maintenance order or Sales order.
Blanket Purchase order (Framework Order) is a very good feature in procurement. In this type of order you can post the invoice directly with out posting GR. Always recommend this feature when client is doing business with their sister concern/ parent organization or with a low value goods/ services.
Procurement business processes can be divided into two parts -> Direct purchase and Indirect Purchase
Movement type is critical term in inventory management. Whenver you write any FS do not forget to consider reversal also in the logic. For ex: If you are considering 101 movement then do not forget to consider 102.
Always recommend your client to include goods movement reversal, PR and PO deletion process in the end user training because during hypercare of a project end users posts many wrong transactions. Therefore, Training must include reversal and deletion process.
The accounting view of material master needs lot of explaination to client. Also try to convience client not to change the valuation class of material post go live. Many clients try to change the valuation class as per the business requirements post go live. it is not a good practice.
Use UNBW material type to manage unvaluated material such as tools or material purchased as an asset. Explain the business significance of this material type to client because many clients need them in certain business situations. For ex: material considered as an Asset. Once received asset is capitaized and the material has zero valuation.
If manufaturer has to be added with the material then recommend to use the manufacturer profile in materil master. Do not add any custom field. Sometime client wants to display manufacturer in PO print. in rare cases we add the manufacturer as a custom field in PO screen.
Explain the difference between material type and material groups because if client is using any other ERP software then they get confuse what to fill up in material group. Client thinks that it is OK to fill up same information in material group and material type. You can give examples of material groups to make client understand.