SAP MM Training in Pune

Features and Applications of SAP MM

MM Stands for Material Management.It is one of the largest functional module in SAP. This module mainly deals with the Procurement Process, Master Data (Material & Vendor Master), Inventory Management, Valuation of Material & Account Determination, Material Requirement Planning, Invoice Verification etc. Logistics is the most extensive area of the SAP Application and contains the largest number of components as follows.. MM : Material Management PP : Production Planning PM : Plant Maintenance PS : Project Systems QM : Quality Management SD : Sales and Distribution

Above of this, SAP MM is the key area within Logistics in SAP. It is very important component of Logistics because it is tightly integrated with all of other components of SAP Logistics. MM contains of the following components.. MM-PUR : Purchasing MM-IM : Inventory Management MM-CBP : Consumption based Planning MM-IV : Invoice Verification MM-EDI : Electronic Data Inter-exchange MM-IS : Information System

Features of SAP MM Module:

In this SAP MM tutorial, we will see some of the features of the SAP MM module.

Some of the key features of SAP MM Module are as follows:

• It deals with inventory management and material management.
• It is a process that keeps in check the scarcity or breach in the supply chain of an organization.
• It manages procurement activities.
• To accelerate productivity and cut the cost, it manages material (products/services) and resources of an organization.
• It deals with Master Data, Valuation of Material, Material Requirement, Invoice Verification, etc.

Advantages of SAP MM Module

• It reduces the cost of operations.
• It minimizes inventory losses by removing unnecessary or obsolete material.

Structure of an Organization In SAP MM Module

Understand the structure of an organization through this SAP MM tutorial.

An organization is formed of various levels and multiple units. These units follow a regular hierarchy. Each of these units has a special function that constitutes together to describe the structure of an organization.

• Client
• Company code
• Plant
• Storage location
• Purchasing organization
• Purchasing group

Physical Inventory Management In SAP MM Module

Physical Inventory management under the SAP MM module manages the stock of goods in an organization. It deals with the procurement of goods according to their availability and stores the stock of goods within the organization premises. It is used to maintain records of goods and update them at regular intervals.

Some of the functions of physical inventory management are:

Movement management in SAP MM: Movement management keeps an eye on the goods which are ordered, stored, sold, or used, i.e., it manages goods receipt or goods issue.

Goods receipt in SAP MM: Goods receipt is the record of the material that is delivered by the vendor to the ordering party. Later, after the delivery, the quality and condition of the goods are checked and, after the verification of the material, the goods receipt is posted. Now, according to the movement type, the stock is updated in the inventory using the goods receipt. Goods receipt reflects the increase in warehouse stock.

Reservation in SAP MM: Reservation in SAP MM is blocking of some stocks so that it can be made available at a particular time. It ensures the availability of stock and can be seen by the t-code ‘MMBE’ using the material number and plant key/code.

Goods issue in SAP MM: Goods issue is the movement of stock out of the inventory system for using or sampling or returning it back to the vendor. Goods issue leads to a decrease in the amount of stock in the warehouse.

Applications:

Determination of requirements:

• Purchase Requisitions component can carry notification of requirements of materials and/or external services and keep track of such requirements.
• Materials and/or external services requirements can be indirectly created in SAP-MM via materials planning and control, via networks (from the component PS Project System), via maintenance orders (from the PM Plant Maintenance and Service Management component) or via production orders (from the PP Production Planning and Control component).

Vendor Master Data:

• The SAP provides the function to maintain the information about external suppliers that specifically relate to purchasing.
• Vendor master data comprises three areas; General data, Company code data and Purchasing data; including the vendor’s name and address, the currency the vendor uses, Terms of payment, Names of important contact persons, and the vendor number (stored in the SAP system as an account number), and accounting information.

Request for quotation and quotation:

• In SAP-MM RFQ and quotation component manages and compares requests for quotation (RFQs) issued to vendors and the quotations submitted by the latter in response to them.
• In situation in which an RFQ has been issued to several vendors, the component determines the most favorable quotation submitted and automatically generates letters of rejection to the unsuccessful bidders. 

Purchase order:

• The MM-purchase order component is provided for a variety of procurement purposes upon which materials can be procured for direct consumption or for stock, and procure services.
• Furthermore, the special procurement types "subcontracting", "third-party", and "consignment" are possible.
• The purchase orders is used to cover the enterprise requirements from external sources whether a vendor supplies a material or performs a service.
• Furthermore, MM-PO is provided to procure a material for one of your plants from an internal source, i.e. from another plant which is called Stock Transport order. All steps of procurement process can be monitored in the MM-PO component (such as the receipt of goods and invoices).