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Configuring MM Goods Receipt

This guide addresses common problems associated with goods receipt, such as disappearance due to theft and stock congestion on the shop floor. It introduces the concept of goods reservations, including how to request materials for future use and the types of reservations (manual and automatic). The reservation process allows for tracking material needs, quantities, and dates, ensuring availability when required. Additionally, it covers materials management tolerances, allowing users to address discrepancies between ordered and received amounts, alongside tolerance keys for purchasing and invoicing.

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Configuring MM Goods Receipt

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  1. Configuring MM Goods Receipt

  2. Problems • Goods can disappear due to theft • What is a case of Lipitor worth? • Too much material on the shop floor make it difficult to get around • And goods might get damaged or misplaced

  3. Solution • A goods reservation is a request to the warehouse to withdraw materials at a later date for a particular purpose • This way goods will be available when needed • We call this a reservation for goods issue • Note that reservations are taken into account by MRP (more later)

  4. Reservation (Types) • Manual • Make by a user • Automatic • Generated by the SAP R/3 system • Reorder point planning

  5. Reservation (Contents) • Which material is needed • How much • When • From where (plant or warehouse) • To where (pant or customer)

  6. Reservation (Outcomes) • A reservation document providing an audit trail of the request • Reserved stock in the material master record is increased • In MRP, the available stock is reduced by the reserved quantity

  7. Reservation Details • Whether goods movements are allowed for reservation items • If the reservation date is greater than the days movement allowed, then goods movements are not allowed yet • We cannot move reserved goods too soon • The retention period is how long the reservation is maintained by the system until it expires (if the goods in the reservation are never used)

  8. Reservation Details (Illustration)

  9. Materials Management Tolerances • Suppose we ordered 1000 units but received 1024 units • MM tolerances allow users to accept discrepancies within tolerable ranges • The cost to correct would likely be greater than the cost to fix

  10. Materials Management Tolerances • A tolerance key depicts the type of tolerance / variance • Upper and lower limit values can be express as • Absolute values • Percentanges

  11. Purchasing Tolerance Keys • Purchasing tolerances apply to purchasing and the allowable variance in cash discounts • Other tolerance limits can be created

  12. Purchasing / Invoicing Tolerances • Here, we are specifying the deviation between the purchase order and the amount of the corresponding invoice

  13. Goods Receipt Tolerances • The variation between a purchase order or production order and the actual amount received that will be allowed

  14. Goods Receipt Tolerance Keys

  15. Goods Receipt Tolerance Keys • B1 causes an error message • B2 causes a warning message

  16. Invoice Tolerance Limits

  17. Invoice Tolerance Limits

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