What is SAP Material Management (SAP MM)

This SAP article will guide you all about “What is SAP Material Management (SAP MM)”.

What is SAP MM ?

SAP MM ( Material Management ) is one of the important modules in SAP ERP software and MM application module supports the procurement and inventory functions occurring in day-to-day business operations. This MM module contains many aspects such as purchasing, goods receiving, material storage, consumption-based planning, and inventory. SAP MM module is fully integrated with other modules in the SAP R/3 System such as Finance (FI), Controlling (CO), Sales and Distribution (SD), Quality Management (QM), Plant Maintenance (PM), Production Planning (PP), and Warehouse Management(WM).

It supports all phases of materials management materials planning and control, purchasing, goods receiving, inventory management, and invoice verification.

Organizational Structure :-

1. Plant


2. Valuation area


3. Storage locations


4. Purchasing organizations


5. Purchasing groups

SAP MM Sub Modules :-

1. Material Planning


2. Purchasing


3. Inventory Management


4. Vendor Valuation


5. Invoice Verification


6. Statutory Requirements

Procurement Process :-

One of the important process in SAP MM module is Purchasing/Procurement. The purchasing process is initially started when there is a requirement of material/service for the organization. If the material/service can not be obtained from company’s internal resource, the responsible person of that company must find the vendor/supplier which can provide it on the required date. The purchasing process is Started with creation of Purchase Requisition (PR), Purchase Order (PO), Good Receipt/Services,Invoice Verification, Payment to vendors.

Now, you must have got clear idea about “What is SAP Material Management (SAP MM)”.

 

 

What is SAP Material Management (SAP MM)