Scribd
Upload
1K views

MM SAP Glossary

The document defines key terms related to logistics and procurement in SAP. It describes organizational units like plants and purchasing organizations. It also defines master data records for materials, vendors, and contracts. Additionally, it outlines common logistics and procurement business documents and transactions such as purchase orders, goods receipts, and invoices.

Uploaded by

Sarthak Chandra
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
1K views

MM SAP Glossary

The document defines key terms related to logistics and procurement in SAP. It describes organizational units like plants and purchasing organizations. It also defines master data records for materials, vendors, and contracts. Additionally, it outlines common logistics and procurement business documents and transactions such as purchase orders, goods receipts, and invoices.

Uploaded by

Sarthak Chandra
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 3

SAP Glossary

Plant: In Logistics a plant is an organizational unit for dividing an enterprise


according
to production, procurement, maintenance, and materials planning.

Purchasing Organization: An organizational unit in Logistics, subdividing


an enterprise according to the requirements of Purchasing. A purchasing
organization procures materials and services, negotiates conditions of
purchase with vendors, and is responsible for such transactions.

Company Code: The smallest organizational unit of Financial Accounting for


which a complete self-contained set of accounts can be drawn up for purposes
of external reporting.

Purchasing Group: Buyer or a group of buyers, who is/are responsible for


certain purchasing activities.

Storage Location: An organizational unit allowing differentiation between the


various stocks of a material in a plant.

Material: The goods that are the subject of business activity.

Material Master Record: A data record containing all the basic information
required to manage a material.

Material Group: A grouping of materials and services according to their


characteristics.

Vendor: A business partner from whom materials or services can be procured.

Vendor Master Data: It contains information about the vendors that supply
an enterprise

Outline Agreement: A longer-term arrangement between a purchasing


organization and a vendor for the supply of materials or provision of services
over a certain period based on predefined terms and conditions.

Contract: In the MM Purchasing component, a contract is a type of outline


purchase agreement against which release orders (releases) can be issued for
agreed materials or services as and when required during a certain overall
time-frame.
Scheduling Agreement: It’s a form of outline purchase agreement under
which materials are procured on predetermined dates within a certain time
period.

Invoice Verification: The matching of documents created during the


purchase order process, the goods receipt process, and the accounts payable
process that is part of the internal controls system within an organization

Goods Receipt: A term from inventory management denoting a physical


inward movement of goods or materials.

Goods Issue: Using this component, you can post a material withdrawal, a
material issue, or a shipment of goods to a customer.

Stock Transfer: The removal of materials from storage at one location, and
their placement in storage at another.

Transfer Posting: It usually refers to a change in a material’s stock (for


example, release from quality inspection, accepting consignment material).

Purchase Order: It is a formal request or instruction from a purchasing


organization to a vendor or a plant to supply or provide a certain quantity of
goods or services at or by a certain point in time

Purchase Requisition: It is a request or instruction to Purchasing to procure a


certain quantity of a material or a service so that it is available at a certain point
in time.

RFQ: It is an invitation extended to a vendor by a purchasing organization to


submit a quotation (bid) for the supply of materials or performance of services.

Quotation: A quotation is an offer by a vendor to a purchasing organization


regarding the supply of materials or performance of services subject to specified
conditions.

Purchasing Info Record: Serves as a source of information for Purchasing. The


purchasing info record (also referred to in abbreviated form as the "info record")
contains information on a specific material and a vendor supplying the material.

Source List: It specifies the possible sources of supply for a material over a
given period of time.
Physical Inventory: This component allows you to carry out a physical
inventory of your company’s warehouse stocks for balance sheet purposes.
Various procedures can be implemented for this.

You might also like