SAP MM
SAP MM ( Material Management ) is one of the important modules in SAP ERP software, and the MM application module supports the procurement and inventory functions occurring in day-to-day business operations.
MM
INTRODUCTION
This MM module contains many aspects such as purchasing, goods receiving, material storage, consumption-based planning, and inventory
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).
Organizational Structure
An effective enterprise structure enables to process of the basic transactions, and these organization structures can be grouped to provide specific functional activities in Finance, Sales, logistics, etc. The important organizational units in the SAP MM module are
Plant
Valuation area
Storage locations
Purchasing organizations
Purchasing groups
SAP MM Sub Modules
SAP MM is a key area within logistics as it is tightly integrated with all the components of the SAP Logistics module. The important components of the SAP MM module are
Material Planning
Purchasing
Inventory Management
Vendor Valuation
Invoice Verification
Statutory Requirements
Information System
Procurement Process
One of the important processes in the 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 the company’s internal resources, 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 the creation of Purchase Requisition (PR), Purchase Order (PO), Goods Receipt/Services, Invoice Verification, Payment to vendors.
