SAP Materials Management (SAP MM)

Introduction

  • SAP MM is one of the Core Module in SAP. Each and every business process in SAP is termed as Module.
  • The MM module is structured to procure and manage the material resources of a company.
  • SAP MM module supports entire P2P cycle.

The following are the main area of SAP MM,

  1. Material Planning and control
  2. Purchasing
  3. Goods Receiving
  4. Inventory Management
  5. Invoice Verification

Below is the diagrammatic illustration of the entire P2P cycle.

P2P Cycle

P2P Cycle ( Procure to Pay)

Role of SAP MM

  • Identifying the need for the materials or goods through Material Requirement Planning (MRP) or by the process followed in Production Planning (PP Module) or by a sales order created in SD module.
  • Processing the Purchase requirements document to Purchase Order that contains the details of the Material to Vendor.
  • Receiving the Material from Vendor and made the quality inspection for the material.
  • Maintaining the inventory of the Material.
  • Shipping the final goods to the customer’s destination.

 

Organization structure

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