SAP Common Material Management Terms


ABC Classification
Web Item to classify objects (Customers, Products or Employees) based on a particular measure (Revenue or Profit) using certain classification rules. Three categories: Important, Less Important, and Relatively Important.
Framework Order
A purchasing document used to procure materials or external services. Instead of stipulating a delivery date, this type of purchase order has an extended validity period. A framework order covers multiple procurement transactions over a longer period.
Goods Receipt
A term from inventory management denoting a physical inward movement of goods or materials.
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

Material Group
A grouping of materials and services according to their characteristics.
Material Master Record
A data record containing all the basic information required to manage a material.
Material requirement Planning (MRP)
A term for procedures in requirements planning that take into account and plan every future requirement during the creation of order proposals such as independent requirements, and dependent requirements
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
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.
Release Strategy
A plan defining the release codes with which a purchase requisition item, a complete purchase requisition, or a complete external purchasing document must be released (that is, approved) and the sequence in which release is to be effected using these codes. For example, you can establish a release strategy for all purchase requisitions with a value in excess of a certain figure
A Method of replenishing stock.
Replenishment Element
The elements in the system that trigger material replenishment for production.
Stock Reservation
The sum of all quantities of a material reserved for withdrawal from stock.
Scheduling Agreement
An outline agreement against which materials are procured at a series of predefined points in time over a certain period.
Stock Transfer
The removal of materials from storage at one location, and their placement in storage at another.
Storage Location
One or more storage locations are assigned to a location of this type.
Vendor Master
The collective term for all vendor master records. The vendor master contains the data of all vendors with which a company conducts business.
Vendor Master Record
A data record containing all the information necessary for any contact with a certain vendor, in particular for conducting business transactions.

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