SAP MM Overview

What is SAP MM?

• SAP Materials Management (MM) is a module in the SAP ERP system.
• It deals with:
  • Procurement
  • Inventory Management
  • Material Valuation
• Plays a crucial role in managing materials and ensuring smooth operation of the supply chain.
• Integrates with other SAP modules:
  • SAP SD (Sales and Distribution)
  • SAP PP (Production Planning)
  • SAP FICO (Financial Accounting and Controlling)

Key Components of SAP MM

1. Material Master

   • Central repository of information about materials.
   • Contains data on materials that an organization procures, produces, or stores.

2. Vendor Master

   • Contains data about vendors from whom materials are procured.

3. Purchasing

   • Manages procurement processes, including:
     • Purchase Requisitions
     • Purchase Orders
     • Request for Quotations (RFQs)

4. Inventory Management

   • Handles receipt, storage, and movement of goods.

5. Invoice Verification

   • Ensures that invoices from vendors are accurate and reflect goods received and purchase orders.

6. Material Valuation

   • Manages valuation of materials and its impact on financial accounts.

What is a Material Master and Its Importance?

• The Material Master is a database containing all necessary information for managing materials in an organization.
• Includes:
  • Material descriptions
  • Units of measure
  • Valuation class
  • Procurement type
• Importance:
  • Ensures consistent and accurate information about materials across departments.
  • Leads to efficient procurement, production, and sales processes.