main asset number

The unique number that identifies a fixed asset in the SAP System, in combination with the company code and the asset sub number.

This number identifies an asset as a single unit for valuation if it includes several master records (sub numbers).

main component

A primary material component as pertains to Common Agricultural Policy in the European Community.

If you export this material from an EC country to a third country, you can apply for restitution.

main condition

A principal condition agreed with the "condition granter."

In the case of conditions requiring periodic settlement, the main condition defines the basic timeframe, i.e. the validity periods of individual period conditions may not lie outside the validity period of the main condition. Final settlement with respect to a rebate arrangement is always effected on the basis of the main condition.

main criterion

In the vendor evaluation system, the basis for determining a vendor's overall score.

You can define main criteria for evaluating a vendor (for example, "price," "quality," "delivery," and "service").

You can divide the main criteria into subcriteria and assign different weightings to main and subcriteria.

main destination

The most important destination of a business trip.

main transaction

A key that classifies the line item for account determination purposes and for running application-specific programs.

The function performed by the main transaction is defined in the relevant application area (for example, utilities) and not in contract accounts receivable.

main tree

The tree used to access the CO-PC information system.

maintenance level

A specification that defines the level at which a field in the asset master record can be maintained.

These levels are:

• Asset class
• Main asset number
• Subnumber

Maintenance level definition is part of the screen layout. For example, if you define the main asset number as the maintenance level for a field, the field receives a default value from the asset class. However, you still have the option to change this value when you maintain master data at the main asset number level.

make-to-order production

A type of production in which a product is manufactured for a particular customer.

Includes both sales order production and engineer-to-order.

make-to-stock inventory

An inventory of make-to-stock materials.

make-to-stock inventory

An inventory of goods that were not manufactured for specific sales orders or projects.

mandatory partner function

A marker indicating that a partner function must be used in the partner object (customer master, sales document, item category).

manual cost allocation

A method used for internal cost allocation.

Manual cost allocation is used to:

• Avoid having to make complex settings in Customizing for simple allocations
• Transfer external data manually

manually entered price

Price of an activity or business process set manually, that is, not calculated iteratively.

manufacturer part

A material supplied by different manufacturers or vendors who can use different manufacturer part numbers to identify it.

manufacturer part number

A code or number used by a manufacturer or vendor to identify a material or part.

manufacturer part profile

A set of control data specifying how manufacturer parts (MPN materials) can be used in the procurement process.

The manufacturer part profile is assigned to the master record for a firm's own inventory-managed material. Among other things, it determines whether:

• The MPN material or the inventory-managed material is entered in a purchase order
• Info records can be created for the MPN material or the firm's own material
• The MPN material can be changed during the procurement process

manufacturer plant

Either a plant belonging to a manufacturer or a manufacturer's manufacturer (that is, a sub-manufacturer).

In the SAP system, a manufacturer plant is replicated in the same way as a manufacturer, with its own manufacturer master record.

manufacturer's recipe

A document that lists as a percentage those parts of a Common Agricultural Policy (CAP) good that are relevant for calculating the restitution rate in goods exports from the EC.

marginal costs

The manufacturing costs that vary according to output.

Variable costs include direct material costs, direct labor, and the variable portion of overhead.

market price

The price prevailing in the market, reflecting the normal forces of demand and supply.

marking

An organizational measure in cost estimates for materials.

When you mark the standard cost estimate for a material, the cost calculated in the standard cost estimate is written to the material master record as the future planned price.

A standard cost estimate must be marked before it can be released.

mass production on the basis of sales orders

A make-to-order production environment in which products are manufactured repeatedly for the same customers.

Typically, this takes the form of variant manufacturing without additional modifications.

This production environment does not require the functions of Product Cost by Sales Order.

mass-change procedure

A function that enables a defined group of master records to be changed systematically.

master area

A depreciation area that manages the values for the balance sheet.

The master area always occupies the first position in the chart of depreciation. The master area cannot adopt values from other depreciation areas.

master company code

master conditions

The conditions that are of key importance with regard to purchase orders.

The master conditions are the basis on which the system computes the effective price.

Refer to time-dependent conditions.

master data

The data that portrays the basic units of consolidation in the SAP System:

• Companies
• Subgroups
• Financial statement items
• Transaction types

master of public administration

University degree.

master service specifications

A grouping of common services for certain fields of activity without reference to a particular project or planned procurement.

material availability check

A check that is carried out automatically to find out whether there are enough materials in stock to cover a proposed withdrawal.

material availability date

The date on which the material must be available.

On the material availability date, the vendor msut start the activities relevant for delivery, such as picking and packing the goods. The material availability date must be sufficiently early enough so that thegoods are prepared by the loading date.

material component

A material that does not have its own bill of material (BOM).

Product Cost Planning makes a distinction between assemblies (materials that have BOMs) and material components (materials that do not have BOMs).

Because this distinction is not necessary in Production Planning, both types of materials are called material components there.

material cost estimate

A tool for planning costs and setting prices.

Calculates the cost of goods manufactured and the cost of goods sold for each product unit, and provides a basis for material valuation with standard costs for all application areas.

Performed either automatically using the data in Production Planning (cost estimate with quantity structure) or using data entered manually in Controlling (cost estimate without quantity structure).

material determination

An automatic search for a material master record during creation of sales and distribution documents using a definable key instead of the material number.

The key defined in the sales and distribution document with which a material is located can be, for example, a customer-specific material number or the European Article Number (EAN) number of the material.

material document

Evidence of one or more material movements, providing information for downstream applications.

A material document contains one or more items and can be printed as a slip to accompany physical goods movements (GR/GI slip).

material exclusion

A restriction that prevents the sale of specific materials to a customer.

The system does not allow you to enter materials that have been excluded from sale to a customer in sales documents for the customer.

material explosion

A function in unit costing that replaces items linked to materials with their BOM items.

material for manufacturer part number

A material master record containing the manufacturer part number (MPN) and the manufacturer number, which is assigned to one of your firm's own materials.

Stocks are managed under your firm's own material number. Materials for manufacturer parts have the material type HERS.

The firm's own material contains a profile with various parameters defining (among other things):

• Whether the MPN material must be entered in the purchase order
• Whether purchasing info records are created for the firm's own material or for the MPN materials
• Whether the purchase order text for the firm's own material or for the MPN material is used

material grouping for shipping materials

A tool that groups materials with the same packing requirements.

For example, you could use the term "liquids" to group all materials that should be packed in a suitable form for liquids, such as a cask.

material inflation class

A system object that groups materials according inflation criteria.

Inflation criteria include:

• Revaluation method
• Inflation index
• Time base and exposure to inflation variant
• Price tolerance

You assign a material inflation class to materials for which replacement cost valuation is performed.

material ledger

Tool that collects transaction data for materials whose master data is stored in material master.

The material ledger uses this data to calculate prices to valuate these materials.

The material ledger is the basis of actual costing. It enables material inventories to be valuated in multiple currencies and allows the use of different valuation approaches.

material ledger master data

A ledger that carries period-based flows of quantities and values for a material with a particular valuation type in multiple currencies.

material ledger settlement

A procedure in material valuation using the material ledger in which theSAP System:

• Valuates inventories of a material in multiple currencies
• Calculates a new valuation price in multiple currencies
• Posts differences that arise through transactions to material stock accounts where this is possible and, for multilevel material settlement, assigns them to consumption

material ledger type

A combination of multiple currencies or valuations that are kept in the material ledger for a particular valuation area.

material ledger update

A procedure that collects data from transactions that are relevant to valuation of a material, such as:

• Goods receipts
• Invoice receipts
• Settlement of production orders

The data is collected in the material ledger in accordance with the settings in the material update structure. The collected data is processed in the material price determination process.

material listing

A restriction that controls the sale of specific materials to a customer.

Customers can only buy materials included in the material listing assigned to them. The system does not allow you to enter materials that are not included in the material listing in a sales document for a customer.

material number

A number that uniquely identifies a material in the SAP system.

As a rule, a material master record must exist for each material managed in an enterprise. This record is stored under the material number.

material overhead costs

The costs that are not assigned to individual materials directly.

Example

• Procurement costs
• Storage costs for inventories in which different materials are stored

material price determination

Procedure in material valuation using the material ledger in which the system:

• Valuates inventories of a material in multiple currencies or valuations
• Calculates a new valuation price in multiple currencies or valuations
• Posts differences that arise through transactions to material stock accounts where this is possible, and also - in the case of multilevel material price determination - assigns them to consumption.

material range of coverage

The period (expressed in a number of months, for example) for which a particular stock quantity of a material is expected to cover requirements.

The material range of coverage is calculated on the basis of historical or forecast values.

material relevant for preference

A material authorized to receive preferential duty treatment.

An example is a reduction or exemption of duties on imported goods.

material stock

Part of current assets.

Material stock is managed at plant or storage location level.

material substitution

The automatic replacing of a material entered by another material during the creation of a sales and distribution document.

For example, material substitution can be necessary for technical reasons or during a sales promotion.

material update structure

A determinant of how the values from transactions relevant to valuation are collected in the material ledger, influencing the determination of new valuation prices and the closing postings with single-level and multilevel material price determination.

material valuation

Determination of the value of a stock of material.

Valuation-relevant data on a material includes:

• Valuation price
• Assignment to a valuation class
• Selection of the valuation method:
• Valuation at standard price
• Valuation at moving average price

material valuation document

In the process of subsequently calculating the value of goods movements, a document that contains only the data necessary for such subsequent calculation of value and for the subsequent updating of accounting documents.

materials list

A list of all the materials used by an enterprise for which a material master record has been created.

You can generate various different material lists by specifying one or more of the following selection criteria:

• Material number
• Plant
• Valuation type
• Material type
• Material group
• Name of the user who created the material master record

matrix substitution

The process of replacing values as they are being entered into the SAP System.

Matrix substitutions are used to execute a substitution for a complete document (the document header and all document lines). They can be used only with specific callup points.

matrix validation

The process of checking values and combinations of values as they are entered into the SAP System.

Matrix validations are used to execute a validation for a complete document (the document header and all document lines). They can be used only with specific callup points.

maximum rate

The maximum amount that can be reimbursed per diem when accounting meals by individual statement.

maximum rate for meals

The daily limit for expenditure on meals.

meals per diem

The additional expenses for meals are calculated for each trip day with a certain per diem rate.

mean value method of depreciation

The calculation of the depreciation amount as a mean value from two depreciation methods

Example

The mean value from straight-line and declining-balance depreciation.

mean-value estimation

An extrapolation procedure used in inventory sampling.

In the mean-value estimation procedure, a mean value is formed for each stratum from the inventory adjustment postings. The estimate for the stratum is obtained by multiplying this mean value by the number of stratum elements.

The sum of the estimated values for each stratum and the values of the inventory adjustment postings of the complete-count area yield the estimated value for the entire stock population.

member state

A country in a group of countries, such as an economic bloc, who have joined forces for a common interest or purpose.

merchant

A party that provides of goods and services and agrees to accept cards as payment for goods or services when properly presented.

merchant bank

An institution that collects transactions from merchants and pays the respective amounts to the merchants based on a merchant agreement.

merchant ID

A unique number, issued to a merchant by a clearing house, that identifies this merchant in payment card transactions.

MERCOSUR

Southern Common Market

A trade association that comprises Argentina, Paraguay, Uruguay, and Brazil.

method

A method used to select objects or to define a condition to activate a row in a planning template within formula planning.

midnight rule

An accounting rule according to German employment tax laws.

The maximum and per diem amounts for additional expenses for

meals are calculated according to the rate for the last country the employee reaches before midnight local time.

minimum processing

A basic set of operations.

For example, in a minimum handling process in a bonded warehouse, wood must be kept moist.

minimum/maximum amount

Maximum amount for low-value assets. The system checks the acquisition value of new fixed assets against this amount, when they are designated as low-value assets.

Ministry of International Trade and Industry

A Japanese customs organization.

The Ministry of International Trade and Industry (MITI) export report is a customs declaration for reporting exports with a value greater thanfive million yen to the Japanese MITI.

minority interest

The portion of an FS item's value that belongs to a company that is not controlled by the corporate group.

Minority interest is computed during consolidation of investments and is stated on separate items in the consolidated financial statements.

The Consolidation system performs the following computations:

• Minority interest in equity capital -

The amount is derived from the equity of proportionally consolidated companies or subsidiaries, and is stated on the liabilities side of the balance sheet either as a single accumulated figure or as separate figures differentiated by the equity's breakdown (into common stock, retained earnings, and so on).

• Minority interest in annual net income

• Minority interest in investments -

This is the difference between the investment book value and the group share of the investor company.

Minority interest in investments is a characteristic of simultaneous consolidation and can be disclosed with minority interest in equity capital.

minority interests

The portion of an FS item's value, which belongs to a consolidation unit that is not controlled by the corporate group.

Minority interest is computed during consolidation of investments and is recorded on separate items in the consolidated financial statements.

The Consolidation system performs the following computations:

• Minority interest in equity capital

The amount is derived from the equity of proportionally consolidated companies or subsidiaries, and is stated on the equity side of the balance sheet, either as a single accumulated figure or as separate figures differentiated by the equity's breakdown (into capital stock, retained earnings, etc.).

• Minority interest in annual net income
• Minority interest in investments

This is the difference between the investment book value and the group share of the upper unit.

Minority interest in investments is a characteristic of simultaneous consolidation and is normally disclosed with minority interest in equity capital.

minority ownership

An statement of the share of an FS item's value, where the share belongs to a company that is not controlled by any of the companies of the consolidated group.

Minority ownership is computed during consolidation of investments and is stated on separate items in the consolidated financial statements.

FI-LC performs the following computations:

• Minority ownership in equity -

The amount is derived from the equity of proportionally consolidated companies or subsidiaries, and is stated on the liabilities side of the balance sheet either as a single accumulated figure or as separate figures differentiated by the equity's parts (such as common stock, retained earnings, and so on).

• Minority ownership in annual net income -

• Minority ownership in investments

This is the difference between the investment book value and the group share of the immediate parent company.

Minority interest in investments is a characteristic of simultaneous consolidation and can be disclosed with minority ownership in equity.

missing part

Material in respect of which:

a) The missing parts check has been activated, and

b) The system has discovered - at the time of the posting of a normal goods receipt or other type of inward movement or at the time of a transfer posting - that in the past it has not been possible to cover requirements thereof as determined by Material Requirements Planning.

When it discovers such a stock shortage (requirement undercoverage) situation deriving from the past, the system issues a warning message and sends an e-mail to the responsible MRP controller in the plant.

missing part check

A check carried out by the system at the time of a goods receipt, other inward stock movement, or transfer posting to determine whether the relevant material is a so-called "missing part". If so, the system issues a warning message on the user's screen and also sends an e-mail to the responsible MRP controller (materials planner) in the plant.

The assignment of a missing part to a certain goods recipient is determined by the application component Warehouse Management (LE-WM).

mix variance

The variance that occurs when the actual product blend differs from the planned product blend.

A product can be made using different manufacturing processes, and each process can result in a different price. If the actual product blend differs from the planned product blend, the overall price of the product changes.

mixed costing

A costing method that uses multiple cost estimates to calculate a mixed price for a material.

An equivalence number is applied to each of the cost estimates, and the cost estimates are adjusted to a uniform costing lot size. The result is a mixed cost estimate that can be used to update the standard price.

mixed price

The price of a material calculated from all the values and stocks of this material within a valuation category.

mixed-price variance

The variance category on the output side that shows the variance between the standard price calculated in a mixed cost estimate of multiple procurement alternatives (procurement versions) and the cost estimate of a single procurement alternative.

mixing ratio

The proportions of the procurement alternatives used in a mixed cost estimate, as defined by equivalence numbers.

mode of transport

A means by which cargo is transported, such as rail, road, air, or ship.

A mode of transport used for goods entering a customs territory.

model

A one-dimensional predefined reporting structure that can be inserted in the rows and columns of a Report Painter report.

model order

An instrument containing default values that you use as a template when creating an order.

No postings can be made to a model order, however.

model service specifications

A set of service specifications that can be used as a model or template for creating other sets of service specifications for use in procurement transactions.

Model service specifications (model specs.) belong to the master data in External Services Management.

A set of model service specifications can include service lines and, if desired, have an outline (defining a hierarchical structure).

You can specify a purchasing organization, a fixed vendor, and a contract as default values. The system proposes this data when new purchase requisitions are created referencing the model specifications.

When creating purchasing documents such as purchase orders or contracts, you can adopt services from model specifications using the service selection facility.

When you create requisitions and purchase orders, you can set value limits on a set of model service specifications. This ensures that services that have been performed can be entered in the system as unplanned services provided they are within the limit set in the model specifications and their value does not exceed the stipulated maximum value.

modified standard cost estimate

A costing type that calculates the cost of goods manufactured for a product during the course of a planning period.

It differs from the standard cost estimate in that it uses the quantity structure that has changed during the planning period as the basis for calculating costs.

modified value-added tax

A country-specific tax scheme whereby manufacturers (for example, in India) can offset input tax against output tax.

However, when you manufacture goods, you can only offset the tax from the materials (direct and indirect) that you used to produce them.

monetary item

A sum of money; a claim to receive a fixed sum of money (for example, a customer invoice); or an obligation to pay a fixed sum of money (for example, a vendor invoice).

month-end closing

The work that is performed at the end of a posting period.

monthly debits and credits

The sum of all postings to an account, separated per posting period debits and credits.

monthly receipt

A procedure for balance sheet valuation that can be used to obtain an objective comparison price for lowest value determination.

movement rate

Ratio of goods movements to material stocks.

Used in the process of lowest value determination in stock valuation for balance sheet purposes.

The SAP system offers a procedure for the blanket devaluation of materials that are classified as slow- or non-moving.

movement type

A classification key indicating the type of material movement (for example, goods receipt, goods issue, physical stock transfer).

The movement type enables the system to find predefined posting rules determining how the accounts of the financial accounting system (stock and consumption accounts) are to be posted and how the stock fields in the material master record are to be updated.

moving average price

A price that changes in consequence of goods movements and the entry of invoices, and which is used to valuate a material.

The moving average price is calculated by dividing the value of the material by the quantity of material in stock. It is automatically recalculated by the system after each goods movement or invoice entry.

moving average price procedure

A procedure for material valuation.

In the moving average price procedure, all quantity movements are valuated at delivered prices.

Price variances at the time of goods or invoice receipt are posted to the stock account. As a result, the moving average price is continually adjusted to reflect changes in delivered prices over time.

MRP total requirement

The automatic totalling of requirements for a material that are passed on to material planning (MRP) in a period in a plant.

The system creates one line for each total requirement, for example, therequirements for a day or week in the stock/requirements list for the material.

The system totals requirements depending on the following criteria:

• Plant
• Date
• Operation
• Requirements type and planning type

multidimension set

A set that can contain various sets that use different dimensions (table fields), such as

• Basic sets
• Data sets
• Single dimension sets

Multidimension sets can also contain set variables.

multidimensional product cost controlling

The cost accounting at both the product level and at the level of responsibility areas.

multilevel actual costing

A procedure that assigns differences from the preliminary valuation price to the material stock account and consumption using the functions of single-level and multilevel material settlement.

multiple account assignment

The assignment of a purchase order item to several accounts.

Costs can be apportioned on a percentage basis, by quantity, or by amount.

multiple-shift depreciation

The calculation of higher depreciation amounts as a result of the increased value reduction of an asset used in multiple shifts.

You can divide the depreciation of an asset used in multiple shifts into a fixed portion and a variable portion. The SAP System then multiplies the variable portion by the multiple-shift factor.

multisegment planning

A tool in Profitability Analysis with which you can create plan values for more than one profitability segment.

Value fields are displayed in the columns (if necessary, with time periods) and the profitability segments are displayed in the rows of the planning screen.

municipal tax number

A tax number, in Brazil, assigned by the local tax authorities to legal persons.

The municipal tax number is known in Brazil as "inscrição municipal."