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Configuring MM Goods Receipt. 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. Solution.
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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
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)
Reservation (Types) • Manual • Make by a user • Automatic • Generated by the SAP R/3 system • Reorder point planning
Reservation (Contents) • Which material is needed • How much • When • From where (plant or warehouse) • To where (pant or customer)
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
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)
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
Materials Management Tolerances • A tolerance key depicts the type of tolerance / variance • Upper and lower limit values can be express as • Absolute values • Percentanges
Purchasing Tolerance Keys • Purchasing tolerances apply to purchasing and the allowable variance in cash discounts • Other tolerance limits can be created
Purchasing / Invoicing Tolerances • Here, we are specifying the deviation between the purchase order and the amount of the corresponding invoice
Goods Receipt Tolerances • The variation between a purchase order or production order and the actual amount received that will be allowed
Goods Receipt Tolerance Keys • B1 causes an error message • B2 causes a warning message