What is SAP MM (Materials Management)?

 SAP MM(Material Management)

 

SAP MM (Material Management) 

In SAP S/4HANA software SAP MM (Materials Management is also one of the important modules.  The primary goal of Material Management is to provide the customers with an unbroken chain of manufacturing components to deliver products on time. The materials department is paid to release goods to a supply base, making sure that the goods are shipped to the customers on time using the appropriate carrier.

Material Management is also responsible for deciding the amount of material to be transported in the supply chain at each storage location, deciding the inventory levels to be kept for each category of product, the product may be raw materials,semi-finished goods, finished goods, finished goods or trading goods. 

The functionality of MM:

• Inventory Management
• Purchasing 
• MRP ( Material Requirement Planning)
• Physical Inventory
• Material Valuation
• Master Data
• Invoicing Verification
• Service Management

Master data(vendor master data and material master data), purchasing, and inventory management are most widely in the Material Management module.

Vendor Master Data:

Contains all the necessary information needed to business with an external supplier. 

• Client Level: Address of the vendor, vendor number, preferred communication
• Company Code Data: Reconciliation account, terms of payment, bank account
• Purchase Org Data: Purchasing currency, salesman's name, vendor partners

Material Master Data:

Contains all the information a company needs to manage the material. Like the name of the material, net weight, net price, delivery date, storage location and etc. Material master data also used in sales and distribution, production, plant maintenance, accounting, quality management module.

MM Organizational Structure:                   

SAP Organization Structure

• Client
• Company Code
• Plant
• Storage Location
• Purchasing Organization
• Purchasing Group

Procure-To-Pay-Process:

When there is a requirement of service or material for the organization then the purchasing or procurement process is started. If the required material is not available in your company's internal resource, the company or the responsible person of that company will find the vendor which can provide the material on the required date and you have to complect the payment to the vendor.

Procure to pay process

Before start, the SAP Material Management case study, Make sure you have completed SAP Navigation and SAP Sales and Distribution.  In the SAP MM module total of 21 steps are available.

Step 1: Create New Supplier  Click here

Step 2: Create Material Master for Trading Goods  Click here

Step 3: How To Extend Material Master For Trading Goods Using MMH1 Click here

Step 4:  Display Stock/Requirements List In Material Management Click here

Step 5: Create Purchase Requisition Click here

Step 6: Display Stock/Requirements List Click here

Step 7: Create Request for Quotation  Click here

Step 8: Maintain Quotations from Vendors  Click here

Step 9: Evaluate quotations on price using T-code ME49 Click here

Step: 10 Create Purchase Order Referencing an RFQ using ME21N Click here

Step 11: Create Goods Receipt For Purchase Order Using T-Code MIGO_GR Click here