Moving Average Price vs Standard Price in SAP Material Master It is maintained in the accounting view of the material master and configured in Material Type. see below See the bottom of the below image for price control Consider the Below Scenario to understand the difference: First Purchase Order  Made for 100 Qty at $20/pcs                             Price = 100*20                                      = 2000$ Second Purchase Order  Made for 500 Qty at $10/pcs for the same material                             Price = 500*10                                      = 5000$ Standard Price : It doesn't change with the change in price in new PO, so suppose the standard price maintained in material master was 20$ when 1st goods are received                            total value = total stock * Standard price                                              = 600qty * 20$                                              = 12000$ Moving Average Price : It does ch

Purchase Order Creation in SAP MM SAP R/3 Path : SAP Easy Access : Logistics : Materials Management : Purchasing : Master Data : Material Master : Maintain T-Code: MM01(Create), MM03(Display), MM02(Change), MM06(Delete), MMAM (Change Material type), OMS2 (Create Mat. Type), OMS3 (Create Industry Sector), MMRR (Create and assign Number Range) Related Tables : MARA, MARC(Plant Specific data), MARD(S.Loc specific data) How to create a Purchase Order Step 1)   Execute transaction code  ME21N,  Enter vendor,  material number,  quantity and unit of measureand P ress  ENTER  to confirm the data entered. Purchase order is now populated from purchase info record and material master , and vendor master data.  In below screenshot , 1  and  2  were populated from PIR, while  3  was populated from vendor master. Default texts populated via PIR -  Info record PO text  and  Info record note ( Text in this field is the same as in our info recod.) St

Material Creation in SAP MM SAP R/3 Path : SAP Easy Access > Logistics > Materials Management > Purchasing > Master Data > Material Master > Setting for key field > Define Mat. Group Process To Create Material Group Please follow the screenshots in the given sequence

Material Type in SAP MM SAP R/3 Path : SAP Easy Access > Logistics > Materials Management > Purchasing > Master Data > Basic Setting > Material Type T-Code: OMS2 (Create Mat. Type), MMRR (Create and assign Number Range) Process To Create Material Type Now Save the Material Type  See difference between Moving average price and standard price   Save the Number Range

Material Creation in SAP MM SAP R/3 Path : SAP Easy Access > Logistics > Materials Management > Purchasing > Master Data > Material Master > Maintain T-Code: MM01(Create), MM03(Display), MM02(Change), MM06(Delete), MMAM (Change Material type), OMS2 (Create Mat. Type), OMS3 (Create Industry Sector), MMRR (Create and assign Number Range) Related Tables : MARA, MARC(Plant Specific data), MARD(S.Loc specific data) Process To Create Material Master Please follow the screenshots in the given sequence Execute MM01 Enter the Industry Sector and Material Type (Click to See Config)and press enter Now Select the view required for the material Now Select the org data   We have various views Created at Plant Level  Enter the Mandatory Field, Also Click here to see config of Material group  Enter the sales org data Also See Moving Average Price  Enter sales general data  Enter purchasing data Now Click on Save

Purchase Info Record in SAP MM SAP Path : SAP Easy Access : Logistics : Materials Management : Purchasing : Master Data : Source List : Maintain T-Code: ME11(Create), ME13(Display), ME12(Change), ME15(Delete) ME1L - Vendor wise PIR Report ME1M - Material Wise PIR Report ME1W - Material Group wise PIR Report ME1P - PO Price History Wise PIR Report ME1E - Quotation History wise PIR Report Related Tables : EINA, EINE Q. What is a Purchase Info Record in SAP? A. Purchase Info Record is information about terms for purchasing a specific material from a vendor. It is  maintained for vendor and material combination and may contain data of  pricing   conditions , over  and underdelivery  limits, planned delivery date of goods and   availability period. Q. What are the Procurement types in info record? A. There are 4 types of PIR Standard - A standard PIR contains information for standard PO. The PIR can be created for material and service with or without master d

Source Determination in SAP MM SAP Path : SAP Easy Access => Logistics > Materials Management => Purchasing > Master Data => Source List > Maintain T-Code: ME01(Create), ME03(Display), ME04(Change), ME07(Delete) Related Tables : EORD Q. Why we use Source list in sap MM ? A. Source list and PIR both contain the combined information of Material and Vendor but Source list contains the list of vendor who can provide the Material but PIR maintains the price data for unique combination of Material and Vendor. e.g. If a material has 4 vendor source then 1 source list can contain all 4 vendors but there will be a need of 4 PIRs to record the price data. Q. Can we create Source List automatically? A. Yes, we need to check the automatic Source list check box in purchasing view while creating Material Master. Q. Can we give preference to a particular vendor in the source list? A. Yes, we can do it by enabling the Fixed indicator in Source list for a pa

Please Follow the Steps in Screenshots to configure the Pricing Procedure : Do let me know your questions on query section below.

Promotion Type Configuration, Please follow the below steps Do let me know in query section below  if you find any difficulty