⚙️ Advanced SAP MM Customizations

🎯 The Advanced Topics Roadmap

📦 Batch Management — Deep Dive

What is a batch?

A subset of a material's stock that shares specific characteristics — typically a manufacturing lot, expiry date, or quality grade. Each batch has a unique batch number; same material can have many batches with different values.

When to use batch management

• Pharma — track manufacturing lot for recall + expiry
• Food & Beverage — shelf life management (FEFO picking)
• Chemicals — quality grade tracking
• Steel/Metal — heat number traceability
• Any regulated industry needing genealogy

Activation

1. Material Master flag — MM02 → General Plant Data / Storage 1 view → XCHPF Batch Management ✓
2. Batch level config — OMCT — Choose: material-level (cross-plant), plant-level, or client-level
3. Internal vs External batch number — Config decides if batch number is auto-generated or user-entered
4. Classification — CT04 — Define characteristics (e.g. ProductionDate, ExpiryDate, Grade)
5. Classification class — CL02 — Class type 023 for batches
6. Search procedure — OMCY — FEFO, FIFO, LIFO, or custom

Key T-codes

📋 Custom Material Types — Deep Dive

SAP standard material types

When to create custom material types

• Industry-specific categorization needed (e.g. STEEL_BAR vs STEEL_TUBE distinct from ROH)
• Different number ranges by category
• Different views allowed per category
• Different default valuation class per category
• Specific authorization control by category

Configuration

1. Create material type — OMS2 — Copy a similar standard type (e.g. ROH), rename, customize
2. Number ranges — MMNR — Internal/external, range start-end
3. Allowed views — In OMS2, tick which views can be filled (Sales, Purchasing, MRP, etc.)
4. Default Industry sector — Mechanical, Chemical, Pharma, Retail, etc.
5. Valuation class / Account category reference — OMSK — Define which valuation classes are allowed
6. Item category groups for SD — If sold

📄 Custom Document Types — Deep Dive

Standard PO document types

When to create custom document types

• Different release strategies needed per type
• Different field selection (some fields visible/required/optional)
• Different number ranges
• Different allowed item categories
• Special business processes (e.g. R&D PO, urgent PO)

Configuration

1. Define PR document types — SPRO → MM → Purchasing → PR → Define Document Types
2. Define PO document types — SPRO → MM → Purchasing → PO → Define Document Types
3. Define RFQ document types — Similar path
4. Number ranges — Per document type
5. Allowed item categories — Standard, Limit, Subcontract, Consignment, Third-party, Stock transfer, Service
6. Field selection — OMF1 for PO / OMF4 for PR

Custom PO example — "ZR" Research & Development PO

Document Type ZR — R&D Purchase Order
  Number range: 47000000-47999999
  Allowed item categories: Standard only (no STO/subcontract)
  Field selection: Cost Center mandatory (research project)
  Release strategy: Goes to R&D Director above 100K

✅ Release Strategies — Deep Dive

Components

• Release Code — An individual approver (e.g. 01 = Manager, 02 = Director, 03 = CFO)
• Release Group — A set of release codes that go together
• Release Strategy — The complete approval chain for specific conditions
• Release Characteristics — What drives strategy selection (value, plant, Purch Group, etc.)
• Release Class — Container for characteristics

Configuration sequence

1. Define characteristics — CT04 — e.g. CEKKO-GNETW (total PO value), CEKKO-EKGRP (Purch Group)
2. Create release class — CL02 — Class type 032 for POs, 028 for PRs. Add the characteristics.
3. Define release groups — OMGS for PO / OMGQ for PR
4. Define release codes — Per group
5. Define release strategies — Combine codes into ordered chains
6. Set classification values — CL20N — Define WHEN each strategy applies (e.g. value > 100K + Purch Group IT0)
7. Workflow event — Standard release workflow can be triggered

Common patterns

Key T-codes

🔄 Special Procurement — Deep Dive

Subcontracting (Item Category L)

You supply raw materials to a vendor; vendor processes them and returns the finished product. Special stock indicator O.

• PO item category: L
• Component provision: Material doc 541 (issue to subcontractor)
• Finished product receipt: 101 (the FERT comes back)
• Components consumed at GR: 543 (auto-posted)
• T-code: ME2O (subcontracting stock monitor)

Consignment (Item Category K)

Vendor owns the stock at YOUR plant until you consume it. Special stock indicator K.

• GR: Movement type 101 (special stock K)
• Withdrawal to own stock: 411 K
• Liability settlement: MRKO (settle consignment liabilities)
• Stock report: MB54

Stock Transport Order (STO)

Move material between plants.

For inter-company STO, you need OMGN to set up the cross-CC Customer (receiving plant) and Vendor (supplying plant).

Third-Party (Item Category S)

Vendor ships directly to your customer; you never touch the goods. Sales order triggers PO directly to vendor.

• Sales order item category TAS
• PR auto-created from sales order
• PO to vendor with ship-to = customer
• No GR (no stock movement)
• Statistical GR possible for reporting

Pipeline (Item Category P)

Material consumed without prior receipt — gas, water, electricity. Special stock indicator P.

💵 Pricing Procedures — Deep Dive

Components

• Condition Type (PBXX, PDXX, FRA1, etc.) — Element of pricing (gross price, discount, freight)
• Access Sequence — Search strategy (vendor+material, material+plant, etc.)
• Condition Table — Stores actual prices (matched by access keys)
• Calculation Schema — Sequence of condition types making up the total
• Pricing Procedure — Assigned to PO via schema group of Vendor + Purch Org

Standard condition types

Key T-codes

• M/06 — Define condition types
• M/03 — Define access sequence
• M/08 — Calculation schema (pricing procedure)
• MEKR — Maintain condition records

📒 OBYC Account Determination

OBYC is the lookup table that tells SAP which G/L account to debit/credit for each MM transaction.

The 3 inputs to OBYC lookup

1. Transaction Key (BSX, WRX, GBB, PRD, KBS…) — derived from movement type
2. Valuation Class — from material master (3000 raw, 7920 finished)
3. Valuation Grouping Code — plant grouping (if OMWM activated)

Key transaction keys

T-codes

• OBYC — Maintain OBYC mappings
• OMWM — Activate Valuation Grouping Code
• OMWD — Assign plants to Valuation Grouping Code
• OMSK — Valuation Class master / Account Category Reference

🏷️ Quota Arrangements — Deep Dive

Distribute purchases across multiple vendors automatically. Used when you want to: balance load, reduce risk, comply with sourcing policies.

How it works

1. Define quota for a material — e.g. Vendor A = 60%, Vendor B = 30%, Vendor C = 10%
2. MRP or PR conversion uses quota to pick vendor
3. Quota usage updates as POs are created
4. System balances over time to meet target percentages

T-codes

• MEQ1 — Create quota arrangement
• MEQ3 — Display
• MEQM — Mass maintenance

🛠️ Service Procurement — Deep Dive

Service Master

• AC01 — Create service master
• AC02 — Change
• AC03 — Display
• Hierarchical service catalog possible

Service procurement flow

1. Create Service PR — ME51N with item category D
2. Create Service PO — ME21N with item category D
3. Receive service via SES — ML81N (Service Entry Sheet)
4. Accept SES — Technical + financial acceptance
5. Invoice verification — MIRO against SES

SES Types

• Standard SES
• Milestone SES (for projects with milestones)
• Recurring SES (monthly retainer)
• Collective SES (multiple services in one)

📨 Output Determination — Deep Dive

How POs get to vendors

• Print (physical paper)
• Email (PDF attachment)
• EDI (electronic data interchange)
• Fax (legacy)
• Fiori app notification

Components

• Output Type (e.g. NEU = new PO, MAHN = reminder)
• Condition Records — when output applies (per Purch Org, doc type, vendor)
• Partner Function — which vendor address to use
• Output Medium — printer, email, EDI
• SmartForm / SAPscript — the printable form

T-codes

• NACE — Output condition maintenance
• ME9F — Output reprint
• SE71 — SAPscript form
• SMARTFORMS — Modern form designer

🌐 Cross-Company / Inter-Company STO

Setup steps

1. Define delivery type for inter-company — 0VLK
2. Define order type for inter-company STO — UB or custom
3. Assign Customer to receiving plant — OMGN
4. Assign Vendor to supplying plant — Same OMGN screen
5. Set up inter-company billing — Item categories, copying control
6. Pricing procedure for inter-co — RM2000 standard

📚 Where to go next