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This process flowchart illustrates a sample “To-Be” process for Material/Service Code Creation in SAP MM (P2P), focusing on how new codes are requested, verified, and created within the system. Here’s a step-by-step breakdown of the process:

  1. Process Initiation:
    • Requestor’s Need: The process is triggered when a requestor identifies the need for a new material or service code.
    • HSN/SAC Code Submission: The requestor provides the HSN/SAC code (based on the vendor’s quotation) and initiates a new material/service code request through:
      • “Product Creation System” for the Engineering Division (ED) only.
      • “Workflow for other than ED” for all other Lines of Business (LOBs).
  2. Verification by MDM Team:
    • Validation of Material Code: The MDM (Master Data Management) Team verifies the inputs from the requestor and checks if the material code already exists in SAP to avoid duplication.
  3. Decision Point – Code Existence:
    • Non-Existence (Not OK Path): If the material code does not exist, the MDM Team proceeds to create the new material/service code in SAP.
    • Existence (OK Path): If the material code already exists, the MDM Team updates the system by inputting the HSN/SAC code against the existing material description (as per vendor’s quotation).
  4. Completion:
    • Code Notification: The MDM Team communicates the new or updated material/service code to the original requestor.
    • Purchase Requisition Creation: The requestor uses the received material/service code to create a Purchase Requisition in SAP.
    • Process Termination: The process concludes successfully with the creation of the Purchase Requisition, ready for subsequent procurement activities.

This structured approach ensures that the creation and update of material/service codes are managed efficiently, aligning with organizational needs and ensuring data integrity within SAP’s ERP system.

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