SAP S/4HANA MM key terms

An internal document that requests procurement of materials or services. It records what is needed, quantity, delivery date, and account assignment before a purchasing document such as a purchase order is created.

A formal purchasing document sent to a vendor that commits the company to buy specified materials or services at agreed terms. It contains header, item, and schedule line data and serves as the basis for goods receipt and invoice verification.

A purchasing document used to invite one or more vendors to submit quotations for materials or services. Vendor responses can be entered and compared, and the selected quotation can be referenced when creating a purchase order.

A long-term purchasing document covering a predefined quantity or value of materials over a period. Contracts and scheduling agreements are the two types, and releases or schedule lines draw down the agreed amount.

A rule set that requires purchasing documents to be approved by one or more people before they become effective. It uses characteristics, classification, and release codes to determine the approval sequence.

A customizing key that controls number ranges, document categories, field selection, and allowed item categories for purchase requisitions, purchase orders, and other purchasing documents.

A key on a purchasing document item that determines how procurement is handled, such as standard, subcontracting, consignment, or stock transport. It controls field selection and the follow-on logistics processes.

A key on a purchase order item that tells the system which object consumes the cost, such as a cost center, internal order, project, or asset. It drives the accounts posted at goods receipt and invoice receipt.

A list of approved sources of supply for a material at a plant, optionally valid for a period. It can be used to enforce that only listed vendors receive purchase orders.

A rule that distributes procurement volume among several sources of supply according to assigned quotas. It helps split demand across vendors or plants and can be used when automatically assigning sources.

A master data record storing vendor-specific purchasing data for a material, such as prices, conditions, tolerances, and delivery times. It can be created per vendor and material or per vendor and material group.

The central master data record for a material, organized in views such as purchasing, MRP, accounting, and storage. Purchasing-relevant fields include purchasing group, order unit, and tolerances.

The master data record representing a supplier in S/4HANA. Vendor roles are assigned to business partners and hold purchasing data such as order currency, payment terms, and partner functions.

A special procurement process where a vendor stores materials at the company's premises without transferring ownership. Payment occurs only when the material is withdrawn from consignment stock, often using a consignment info record.

A process where a manufacturer provides components to a vendor who uses them to produce a finished product. The purchase order for the finished material includes a component list, and components are transferred to subcontractor stock.

A purchase order used to move stock between plants or company codes. It can include goods issue from the supplying plant, goods receipt at the receiving plant, and optionally a billing step.

A process where the company orders from a vendor and the vendor ships directly to the customer. The purchase order is linked to a sales order, and goods receipt is typically not posted in inventory.

A three-digit key that controls stock movements in inventory management. It determines whether stock increases or decreases, which accounts are updated, and which fields appear on the entry screen.

A transaction that records the arrival of materials into stock. It increases inventory, creates a material document, and may trigger an accounting document depending on price control and account assignment.

A transaction that records a reduction of stock, for example when materials are consumed, scrapped, or shipped. It creates a material document and usually posts an offsetting expense or cost account.

A movement that changes the status, location, or ownership of stock without necessarily changing total quantity. Examples include plant-to-plant transfer and change of special stock indicator.

A periodic process of counting stock to verify that book quantities match actual quantities. Differences are recorded and posted, and the count can cover all materials or selected ones.

A physical inventory method in which materials are counted at regular intervals during the year rather than all at once. Count frequency can be based on ABC classification or other criteria.

A statistical physical inventory method that counts a sample of materials and extrapolates the result to the entire population. It may be used when full counting is impractical.

A document that requests that a quantity of stock be set aside for a future issue, such as for a production order or cost center. It does not change stock but reduces availability.

Inventory that is owned or managed differently from normal unrestricted stock, such as vendor consignment, customer stock, or project stock. Special stock is identified by an indicator and often a partner number.

The SAP component where vendor invoices are entered, checked against purchase orders and goods receipts, and posted. It can block or release invoices based on tolerances and updates GR/IR accounts.

A control that compares the purchase order, goods receipt, and invoice to ensure quantity and price agree. Differences can block the invoice or trigger a warning depending on tolerance settings.

A balance sheet account that temporarily holds the value difference between goods receipts and invoices. It is cleared when the invoice is posted, and residual balances indicate missing receipts or invoices.

Customizing settings that define acceptable differences in price, quantity, and date between an invoice and the referenced purchase order or goods receipt. Exceeding them can block or warn during invoice posting.

An invoice that cannot be posted because it failed a check such as price or quantity variance. It is parked or blocked and must be reviewed, changed, or released by an authorized user.

A process where the system creates the invoice automatically from the goods receipt, using the purchase order price. It avoids manual invoice entry and requires a vendor-specific agreement and correct settings.

A document used in invoice verification to reverse or reduce a vendor liability, for example for returned goods or overbilling. It references a purchase order or invoice and posts using the same GR/IR logic.

A key assigned to a material in the accounting view that groups materials for automatic account determination. It links the material to G/L accounts for inventory and consumption postings.

The automatic process of selecting G/L accounts for a goods movement or invoice based on configuration. It uses keys such as transaction key, valuation class, and account modification.

A material master setting that determines how inventory value is calculated. Standard price keeps a fixed price and posts differences separately, while moving average price recalculates the value after each receipt.

The organizational level at which materials are valuated, typically the plant in S/4HANA. It determines the scope of price control, account determination, and inventory valuation.

A component that collects actual costs for materials and supports multiple valuations and currency types. It enables actual costing and is mandatory in S/4HANA for material valuation.