SAP MM(Material Management ) Role in the Business

Method is as Follows:

A business process in SAP is termed as “Module”. SAP Material Management (MM) is a part
of Logistics field and helps to manage the procurement activity of a group from procurement. It
promotes all aspects of (MM) Material Management (control, planning etc).

SAP Material Management (MM) is one of the important modules in SAP ERP software and MM
application module helps the procurement and inventory functions occurring in day-to-day
company operations. This Material Management module consists of several facets such as
collecting, goods receiving, material area, consumption-based planning, and inventory. SAP
Material Management (MM) module is completely integrated with other modules in the SAP
R/3 System such as Finance (FI), Controlling (CO), Sales and Distribution (SD), Quality
Management module(QM), SAP PM (Plant Maintenance), SAP PP module(Production
Planning), and SAP WM module (Warehouse Management).

It supports all phases of MM (Material Management) material planning and control, purchasing,
items getting, inventory management, and invoice verification
ORGANIZATIONAL STRUCTURE:-

o Plant
o Assessment location
o Storage locations
o Buying organizations
o Purchasing groups

SAP MM SUB MODULES:-

o Material Planning.
o Buying.
o Stock Management.
o Vendor Valuation.
o Invoice Verification.
o Statutory Requirements.
o Procurement Process.

One of the crucial procedure in SAP MM module is Purchasing/Procurement. The purchasing

procedure is at first started when there is a requirement of material/service for the organization.
If these material/ services cannot be obtained from business’s internal resource, the liable
individual of that organization has to discover the vendor/supplier which can offer it on the fixed
date. The buying method is Started with the production of Purchase Requisition (PR), Purchase
Order (PO), Good Receipt/Services, Invoice Verification, Amount to vendors.

SUMMARY

SAP Material Management (MM) module is a part of logistics and it helps in managing end to
end procurements and logistics business process. The main points you can obtain in the Material
Management module request in SAP, obtaining orders, goods receipt, accounts payable,
inventory management, BOM’s and master raw material, performed goods etc.

Requisitions in SAP Material Management module is a record created for the buying of goods or
services, it is sent out to acquisition office for the issuance of an order. Support exceeding
particular quantity must merchant dealing in SAP Material Management module. There are two
means of placing requisition either with SAPGUI or SAP web.

An order is a proper document issued as a commitment to the merchant to supply discussed

material in the defined quantity together with shipping information and requirements. The
licensed merchant list is performed while generating purchase order as per material and plant of
the organization What is sap mm? | sap material management module.