Tuesday, 12 April 2016

Introduction to SAP MM

What is SAP MM?

SAP MM is a business process in SAP.It is a part of Logistics and it is useful for managing procurement activity of an organization.It supports all aspect of Procurement.SAP MM is the functional module of SAP.This module deals with procurement,Inventory management,valuation of material & Account Determination etc.

Among the other modules of SAP,Material Management is a part of logistics and is often integrated into  production and manufacturing facilities.SAP module is integrated with other modules like SD(Sales and Distribution),WM(Ware house Management),PP(Production Planning),QM(Quality Management,FICO(Finance and Controlling).

The concept of Material Planning?

Before we start about the material planning the user should understand the inventory approach used in the module.In material planning we have two types Material Requirement Planning (MRP) and Consumption Based Planning(CBP).The MRP is guided by the procurement proposal while the CBP is guided by the forecasting which is taken based on the past usage.

The Process Flow in SAP Material Management(MM)

There are seven phased in the process flow of SAP MM.They are mentioned as below

1.Determination Requirements
2.Source Determination
3.Vendor Selection
4.Purchase order Processing
5.Purchase order Follow-Up
6.Goods Receiving and Inventory Management
7.Invoice Checking

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