Integration of Materials Management with Financial Accounting in SAP

- Preface 15
1 Introduction 19
1.1 Business 19
1.2 Enterprise Resource Planning 20
1.3 Procurement and Finance 20
1.4 Purpose of this Book 22
1.5 Scope of the Book 23
1.6 Summary 23
2 Overview of SAP ERP 25
2.1 The Building Blocks of SAP ERP 25
2.2 Integration of Materials Management in SAP ERP 30
2.3 Analysis and Resources for Materials Management 31
2.4 Summary 40
3 Overview of the Materials Management and Financials Relationship 41
3.1 Elements of Materials Management 43
3.2 Elements of Financial Accounting 52
3.3 Relationship between the Elements of Materials Management and Financial Accounting and Controlling 54
3.4 Troubleshooting Techniques 61
3.5 Summary 67
4 Basics of Configuration and the Processes in Procurement 69
4.1 Enterprise Structure 69
4.2 Processes in Procurement 81
4.3 Master Data 91
4.4 Documents in Procurement 99
4.5 Summary 111
5 Procurement of Stock and Consumable Materials 113
5.1 Procurement of Stock Material 113
5.2 Procurement of Consumable Materials 138
5.3 Procurement of External Services 144
5.4 Subcontracting 152
5.5 Summary 156
6 Conditions, Price Determination, and the Basics of Material Price Changes 157
6.1 Conditions and Price Determination 157
6.2 Basics of Material Price Changes 184
6.3 Summary 190
7 Balance Sheet Valuation 191
7.1 Lowest Value Determination 192
7.2 LIFO Valuation 201
7.3 FIFO Valuation 214
7.4 Summary 217
8 Material Price Change 219
8.1 Value Changes in Inventory Management 219
8.2 Value Changes in Logistics Invoice Verification 237
8.3 Value Changes Resulting from Cash Discounts 242
8.4 Revaluation 245
8.5 Posting to a Previous Period 248
8.6 Summary 254
9 Accounts Payable Invoice from Materials Management 255
9.1 Logistics Invoice Verification 255
9.2 Incoming Invoice 260
9.3 Invoice Verification Online 266
9.4 Invoice Parking 280
9.5 Prepayment 285
9.6 Invoice Verification in the Background 289
9.7

Faisal Mahboob works in the UK as a freelance consultant in Materials Management and Supplier Relationship Management. With over 8 years of experience in SAP both on the technical and functional side of MM, as well as numerous projects under his belt, he is well suited to speak with authority on the topic. Over the years, he has worked with almost every industry sector and every kind of work related to SAP MM, be it implementation, support, upgrade, or global roll out.