What is SAP MM?

SAP MM ( Material Management ) is one of the important modules in SAP ERP software, and the MM application module supports the procurement and inventory functions occurring in day-to-day business operations. 

This MM module contains many aspects such as purchasing, goods receiving, material storage, consumption-based planning, and inventory.  SAP MM module is fully integrated with other modules in the SAP R/3 System such as Finance (FI), Controlling (CO), Sales and Distribution (SD), Quality Management (QM), Plant Maintenance (PM), Production Planning (PP), and Warehouse Management(WM).

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SAP MM Tutorials

It supports all phases of materials management, materials planning, and control, purchasing, goods receiving, inventory management, and invoice verification.  

Organizational Structure

An effective enterprise structure enables to process of the basic transactions, and these organization structures can be grouped to provide specific functional activities in Finance, Sales, logistics, etc. The important organizational units in the SAP MM module are

What is SAP MM ? | SAP Material Management Module

 

SAP MM Sub Modules-

SAP MM is a key area within logistics as it is tightly integrated with all the components of the SAP Logistics module. The important components of the SAP MM module are

  • Material Planning
  • Purchasing
  • Inventory Management
  • Vendor Valuation
  • Invoice Verification
  • Statutory Requirements
  • Information System

Procurement Process

  • One of the important processes in the SAP MM module is Purchasing/Procurement.
  • The purchasing process is initially started when there is a requirement of material/service for the organization.
  • If the material/service can not be obtained from the company’s internal resources, the responsible person of that company must find the vendor/supplier which can provide it on the required date.
  • The purchasing process is Started with the creation of Purchase Requisition (PR), Purchase Order (PO), Goods Receipt/Services, Invoice Verification, Payment to vendors.

What is SAP MM ? | SAP Material Management Module

 

 

 

 

Interview Questions 

  • What is SAP MM?
  • What are the Important Submodules of SAP MM?
  • Describe Procurement Process?

Read more for SAP MM Training Tutorials step by step with real-time MM scenarios.