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s solutions.

This ERP software application was first introduced in Germany


(Mannheim) in the year 1972. ERP stands as Enterprise Resource Planning.
It provides solutions by incorporating various business tasks like sales, purchase and
production.  SAP obtains details from one business process and integrates it into
another business process, thus speeding up the business process.  It is broadly
used in industries, since it updates and process important data very quickly and used
by the department to determine how to prepare the products and also it can program
business process and provide real time solutions for business.
4. Can you explain the essential components in SAP MM?

To define the requirements,  determination sources, selection of vendors, order


processing, follow up with the clients, receipts of goods  and inventory management,
verification of bills, payment systems etc.

5. Do you know about organizational structure in the MM module?

The structure in the MM module is a ladder in which various organizational unis are
arranged designed according to the functions and tasks of each of them. The units
that make the structure of the organization are as given below. 

The first is the client and this unit is independent. This unit has a different record
system and well as its own table sets. The second is the company code. This is one
of the smaller units of the organization. For the need of external report one can make
a self-reliant account sets for the unit of company code. The third is the plan. This is
where the supplies are formed and the services and goods are given. The industry
can be broken down into different plants based on maintenance, supplies,
production, procurement etc.  The next is the location of the storage. The produced
goods are kept in this unit. The next is the number of the warehouse this shows the
system of the warehouse. It is different for every area of storage and organization.
After that is the storage type which tells one the different areas such as issuing area,
area for picking up the goods etc. The next is the organization of the purchasing
which is the unit that negotiates with others for purchasing and also obtains the
services and the material. The next is the group purchasing which a code for an
individual buyer or a group who actually purchase the materials. This unit is also
partially involved in negotiating and obtaining the goods.

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6. Explain in detail about order of purchase?

This is a final and formal confirmation of the essential materials to be supplied by the
vendor to the industry. This will involve the all the names of the essential materials
with the equivalent plant. The details of the purchase which would include the code
of the company, vendor’s name, the delivery date of the materials. 

7. Why is record of the information of purchase useful?

It is essential because it collectsvarious informationon the vendor and the materials


supplied by them. For instance the current price at which the vendor is selling the
material is recorded in the purchase record. 

8. What are the important criteria in purchasing?

The important criteria in purchasing includes the following the unit of the order, the
group of material, the base unit, the group of purchasing, the validity, the indicator of
tax for that material, the part number of the manufacturer, and the manufacturer. 

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