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SAP MM module

SAP MM module: What is, Material Management Process Flow?

SAP MM – It is abbreviated as Material Management Module. This is the SAP ERP component that helps organizations deal with material management, inventory management, stock and warehouse management in the supply chain & logistics process. This is the vital part of SAP ECC’s logistics functions and this consists of many primary components and sub-components. The main components used in SAP MM Module are –

– Master Data

– Purchasing

– Inventory

Below we have explained these 3 modules in detail.  All the main components have their sub-components that play an important role in specific business processes and all these processes are executed by using the transaction module in SAP MM process flow.

In SAP, the transaction is defined as the process of certain information in order to complete the business process requirement. For example:  if you have placed the order of 5 goods, you can perform a particular transaction code (t-code), which helps to reflect the changes in the SAP.

To get a more clear knowledge of SAP MM Basics, continue reading! In this SAP MM tutorial, we have explained the various modules of SAP Materials Management.

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SAP MM – Master Data

Usually, Data stored in SAP R/3 is categorized as:

– Master Data

– Transactional Data

Master Data is the core data in SAP Materials Management and it has been used as a base for any transaction. This will make a count of data such as – production and transferring stock, selling, purchasing, physical inventory and so. To perform all these, a certain master data need to be maintained under the master data module.

Few Examples of Master Data are:

– Material master data

– Customer master data

– Vendor master data

– Pricing/conditions master data

– Warehouse management master data (storage bin master data)


Next to master data, purchasing is the main component of the SAP MM module. Master Resource Planning (MRP) will create a procurement proposal which will be later converted into purchase requisition. And then, the next step will be – assigning a source to purchase requisition and the release of the purchase requisition. Now the PR (purchase requisition) will get converted into a purchase order and upon the receipt of goods, an invoice receipt can be done to complete the purchasing process. And along with this, payment will also be processed via FI (Financial Audit & Accounting) Module.

Inventory Management

The main function of SAP is to manage the inventory of goods and here comes inventory management. The key process involved in the inventory management module is:

– Definition of movement types

– Reservations

– Goods issue

– Goods receipt

Apart from this, there are also a number of functions and transactions which are used in the inventory management processes.

Pricing Procedure

The pricing Procedure in SAP MM Module is used to determine the prices in purchasing documents. This gives a functional value to assign different calculation types of different needs. You can define a pricing procedure by creating an access sequence and assigning it to condition types. And this access sequence tells the system where to look for the condition value.

Features of SAP MM

– SAP MM can deal with both material management and inventory management

– Work with both material and inventory management, ensures no shortage of materials in the supply chain

– Speed up the material management and procurement activities

– Helps to accelerate purchase and reduce costs and also maintain the accommodation for frequent changes in the business module.

– Help companies to deal with various aspects like purchase, material valuation, inventory management, invoice and purchase requisition, etc.

Key Points – What is SAP MM?

– SAP MM – one of the important modules in SAP ERP which helps with managing material, inventory, and warehouse in the supply chain process

– SAP MM stands for SAP Material Management

– In SAP transaction means processing specific information in order to complete business process demand

– Compared to master data and transaction data, master data is the core data that is used as a base for any transaction

– Inventory & purchase of goods are managed using inventory management

– In SAP MM Module, Pricing Procedure is used to determine the prices in purchasing documents

These are the few basic pieces of information that you need to know about the SAP M Module. To get started with your SAP Training Courses, you can enroll yourself at Training Expand, the SAP Training Center in Hyderabad! Book your seats now & start learning SAP Modules within the comfort of your own home!

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