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REMSC, 2011-04-27

SAP Material Management


MM Module Overview
Doc no: 9AKK105408A1193
ABB LMS SAP Material Management
MM Module Overview lesson summary

Key learning:
Fundamental SAP Material Management (MM) knowledge,
including its organization structure
Basic knowledge about the MM functionality and its master data
Overview on the integration of the MM module into several other
modules

What will happen:


This slide based training will start with general SAP information on
the SAP MM module, covering the general functionality and
organization structure. The main part of this learning is about the
master data in the MM module, especially pertaining to the material
master. The learning concludes with a high level overview on module
integration enumerating the relation and dependencies of the MM
module with other modules.

Duration of this lesson : 20 min


ABB Group
April 13, 2012 | Slide 2
SAP MM Module Overview
Table of content

Objective of the MM module


MM module functionality
Master Data
Module integration

ABB Group
April 13, 2012 | Slide 3
SAP MM Module Overview
MM - Objective

The MM (Material Management ) Module is a core


module of the logistics functionality of SAP.
It integrates closely with other modules like SD (Sales
and Distribution), PP (Production Planning), FI
(Finance) and CO (Controlling).
It contains key functions of SAP including Purchasing,
Inventory Management and Goods Receipt.
It includes creation and maintenance of Master Data
such as Material Master, Vendors and Purchasing Info
Records.

ABB Group
April 13, 2012 | Slide 4
SAP Material Management
MM - Process Overview

ABB Group
April 13, 2012 | Slide 5
SAP Material Management
MM - Organization Structure

Client

Company Code AU01

Plants AULA AUDI AUMN

Storage Locations MN01 FG01 MN01 FG01 FG01

ABB Group
April 13, 2012 | Slide 6
SAP Material Management
MM - Organization Structure

Plant
An organizational unit within a company where an activity
takes place. A plant produces goods, renders services or
makes goods available for distribution. It can be a
manufacturing facility, warehouse distribution centre or a
regional sales office.

Storage Location
Storage locations are organizational units that allows the
differentiation of material stocks within a plant.

ABB Group
April 13, 2012 | Slide 7
SAP Material Management
MM Master Data

Master Data in the MM Module are


Material Master
All the information your company needs to manage a material is stored in a
data record in the material master. (see next slides)

Vendor Master
The vendor master contains information about the vendors that supply an
enterprise. This information is stored in individual vendor master records. A
vendor master record contains the vendors name and address, as well as
data such as:
The currency used for ordering from the vendor

Terms of payment

Names of important contact persons (sales staff)

ABB Group
April 13, 2012 | Slide 8
SAP Material Management
MM Master Data

Master Data in the MM Module are


Info Record
The info record is a source of information for purchasing and contains
information on a specific material and a vendor supplying the material. For
example, the vendor's current pricing is stored in the Info record.
The info record allows buyers to quickly determine:
Which materials have been previously offered or supplied by a specific
vendor.
Which vendors have offered or supplied a specific material.

Service Master
Repository for the descriptions of all services that a firm frequently has to
procure. There is a service master record for each individual service
description.

ABB Group
April 13, 2012 | Slide 9
SAP Material Management
MM Material Master

Material Master
All the information your company needs to manage a material is stored in a data
record in the material master.

The data in a material master record can be divided into two categories:
Data of a purely descriptive nature
Data that the system uses to perform a control function

Material Number :
For every material that your company uses, you must create a material master
record in the material master. This record is uniquely identified by a material
number.

Industry Sector:
The industry sectors have control functions in the SAP system. For example, it is
factor determining the screen sequence and field selection in a material master
record. Once you have assigned an industry sector to a material, you cannot
change the industry sector again afterwards. In ABB we only use Mechanical
Engineering
ABB Group
April 13, 2012 | Slide 10
SAP Material Management
MM Material Master

Material Type:
Materials with the same basic attributes are grouped together and assigned to a
material type. This allows you to manage different materials in a uniform manner
in accordance with your company's requirements. This is important especially with
regard to Accounting and Inventory Management.
Examples of material types are:
ERSA (Spare parts); HALB (semi finished products); ROH (raw material); DIEN
(services) etc.

Material Group:
Grouping of materials and services according to their characteristics (e.g..
Bearings, Electrical Cables, etc). In ABB we use the MDF code in this field.

Unit of Measure:
Different parts of the business can measure quantities in different units
e.g. Piece, box, crate, pallet

ABB Group
April 13, 2012 | Slide 11
SAP Material Management
MM Material Master
Overview:
The material master contains different business related views, these are governed
by the material type selected
Basics Data is always required and shared between countries, so care should be
taken when creating or changing this data.
Other tabs can be selected to meet the business requirements e.g.. Warehouse
Management views are only relevant to businesses with Advanced Warehouse
functionality.

ABB Group
April 13, 2012 | Slide 12
SAP Material Management
MM Material Master

Material Master primary view


Basic data is created at client level and is shared
between plants and countries. Plant level data is specific
to individual businesses. E.g.

ABB Group
April 13, 2012 | Slide 13
SAP Material Management
MM - Integration

MM integrates with other modules and functions in the SAP


environment.

ABB Group
April 13, 2012 | Slide 14