SAP- MATERIALS MANAGEMENT (MM)

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OVERALL OBJECTIVE
• To ensure that we have the right product, in the right place, at the right quantity and
price.
• To reduce working capital by monitoring raw and packaging stocks on a continuous
basis.
VENDOR MASTER FILE
• Only authorised suppliers must be included in the master file in terms of the purchasing
standards policy.
• Deliverables include policy and procedure documents defining standards for purchasing
relating to SAP systems.
MATERIAL MASTER FILE
• Ensure that controls are adequate to ensure that the master file is completely and
accurately created.
• Ensure that there is appropriate accountability for master file data.
• Ensure that compulsory fields (conditions)  such as discounts, delivery costs, cash
discounts, etc. are identified (pre-defined) and flagged to ensure that these fields are
entered on the system.
• Ensure that appropriate unit of measure is updated on the system.
• The system must identify obsolete and potential obsolete stocks in respect of date code
and expired stocks.
• All purchases from non-approved suppliers must be flagged.
• Ensure that obsolete codes can be timeously removed from the system (S&D, FIN, PP,
MM)
• Ensure that routing is appropriately implemented (linked to PP).
• Appropriate access must be given to master file information (technical, purchasing,
distribution and at factory levels).
• The master file only contain authorised technical data.
• Management decision must be taken regarding the updating of material specifications.
• Documented procedures must address lot control, production control and demand
management.
• Ensure that lot tracking is considered.
• Ensure that appropriate decision is taken regarding pricing.  Interfaces to costing is
adequate.
• Ensure that warehouse management decision considers stock rotation and best before
dates.
BILLS OF MATERIAL (BOM)
• Ensure that all BOMs are appropriately authorised and updated on the system.
• Ensure that the ownership of bills is defined and access appropriately designed.
• Ensure that standards are appropriate and periodically reviewed.

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